Farina, Vincenzo (2008): Network embeddedness, specialization choices and performance in investment banking industry.
Download (208Kb) | Preview
The idea that network structure and embeddedness affect firms’ competitive behavior and performance is not new both in network literature and in strategic management literature. This study recognizes that the possibility to fully exploit network opportunities is depending on firm specialization choices. By analyzing network embeddedness within the European investment banking industry, I find that banks enhance performance by having a central position in their network and that specialization reduces bank’s benefits of having a central position in the network.
|Item Type:||MPRA Paper|
|Original Title:||Network embeddedness, specialization choices and performance in investment banking industry|
|Keywords:||Investment Banking; IPOs; Underwriting syndicates, Social network analysis|
|Subjects:||G - Financial Economics > G2 - Financial Institutions and Services > G24 - Investment Banking; Venture Capital; Brokerage; Ratings and Ratings Agencies
M - Business Administration and Business Economics; Marketing; Accounting > M1 - Business Administration > M10 - General
|Depositing User:||Vincenzo Farina|
|Date Deposited:||28. Nov 2008 01:14|
|Last Modified:||08. Jan 2014 14:54|
Adler, P. S., Kwon, S., 2002. Social capital: prospects for a new concept: Academy of Management Review 27, pp.17–40.
Ahuja, G. 2000., Collaboration networks, structural holes and innovation: a longitudinal study: Administrative Science Quarterly 45, pp.425-455.
Almeida, P., Dokko, G., Rosenkopf, L., 2003. Startup size and the mechanisms of external learning: increasing opportunity and decreasing ability?: Research Policy 32, pp.301–315.
Barnett, W., Greve, H. R., Park D., 1994. An evolutionary model of organizational performance: Strategic Management Journal 15, pp.11–28.
Barney, J., 1991. Firm resources and sustained competitive advantage: Journal of Management 17, pp.99-120.
Boje, D.M., Whetten, D.A. 1981. Effects of organizational strategies and constraints on centrality and attributions of influence in interorganizational networks: Administrative Science Quarterly 26, pp.378-395.
Borgatti, S.P., Everett, M.G., Freeman, L.C. 1992. Ucinet IV: Network analysis software. Connections: 15, pp.12-15.
Burt, R.S. 1980. Actor interests in a social topology: foundations for a structural theory of action: Sociological Inquiry 49, pp.107-132.
Burt, R.S. 1992. Structural holes: the social structure of competition. Harvard University Press, Cambridge, MA.
Burt, R.S. 2007. Secondhand brokerage: evidence on the importance of local structure for managers, bankers and analysts: Academy of Management Journal 50, pp.119–148.
Chemmanur, T.J., Fulghieri, P., 1994. Investment bank reputation, information production, and financial intermediation: Journal of Finance 49, pp.57–79.
Chen, M.J., 1996. Competitor analysis and interfirm rivalry: toward a theoretical integration: Academy of Management Review 21, pp.100-134.
Cohen, W., Levinthal, D., 1990. Absorptive capacity: a new perspective on learning and innovation: Administrative Science Quarterly 35, pp.128-152.
Coleman, J.S., 1988. Social capital in the creation of human capital: American Journal of Sociology 94, pp.95–120.
Cravens, D. W., Piercy, N. F., Shipp, S. H., 1996. New organisational forms for competing in highly dynamic environments: the network paradigm: British Journal of Management 7, pp.203–218.
Cross, R., Cummings, J.N., 2004. Tie and network correlates of individual performance in knowledge-intensive work: Academy of Management Journal 47, pp.928–937.
Dunbar, C., 2000. Factors affecting investment bank initial public offering market share: Journal of Financial Economics 55, pp.3–41.
Eccles, R., Crane, D., 1988. Doing deals: investment banks at work. Harvard Business School Press, Boston.
Echols, A., Tsai, W., 2005. Niche and performance: the moderating effect of network embeddedness: Strategic Management Journal 26, pp.219-238.
Forestieri, G., 2005. Corporate and investment banking. Egea, Milano.
Freeman, L.C., 1977. A set of measures of centrality based on betweenness: Sociometry 40, pp.35-41.
Gnyawali, D. R., He J., Madhavan, R., 2006. Impact of co-opetition on firm competitive behavior: an empirical examination: Journal of Management 32, pp.507-530.
Gnyawali, D.R., Madhavan, R., 2001. Cooperative networks and competitive dynamics: a structural embeddedness perspective: Academy of Management Review,26, pp.431–445.
Granovetter, M., 1973. The strength of weak ties: American Journal of Sociology 78, pp.1360-1380.
Grant, R., 2001. Corporate strategy: managing scope and strategy content. In: A. Pettigrew, H. Thomas and R. Whittington (Eds.), Handbook of strategy and management, pp.72–98. Newbury Park, CA: Sage.
Gulati, R., Nohria, N., Zaheer, A., 2000. Strategic networks: Strategic Management Journal 21, pp.203–215.
Gulati, R., 1999. Network location and learning: the influence of network resources and firm capabilities on alliance formation: Strategic Management Journal 20, pp.397-420.
Hagedoorn, J., Roijakkers, N., Van Kranenburg, H., 2006. Inter-firm R&D networks: the importance of strategic network capabilities for high-tech partnership formation: British Journal of Management, 17, pp.39-53.
Hambrick, D.C., 1982. Environmental scanning and organizational strategy: Strategic Management Journal 3, pp.159-174.
Harrigan, K.R., 1986. Managing for joint venture success. Lexington Books, Massachusetts.
Haunschild, P., Ni, B., 2003. Learning from complexity: effects of accident/incident heterogeneity on airline learning: Administrative Science Quarterly 47, pp.609–643.
Hickson, D.J., Butler, R.J., Cray, D., Mallory, G.R., Wilson, D.C., 1986. Top decisions: strategic decision making in organizations. Jossey-Bass, San Francisco.
Higgins, M., Kram, K., 2001. Reconceptualizing mentoring at work: a developmental network perspective: Academy of Management Review 26, pp.264–288.
Khandwalla, P.N., 1973. Effect of competition on the structure of top management control. Academy of Management Journal 18, pp.285-295.
Langlois, R.N., 1992. Transaction-cost economics in real time: Industrial and Corporate Change 1, pp.99 - 127.
Lee, C., Lee, K., Pennings, J. M., 2001. Internal capabilities, external networks, and performance: a study on technology-based ventures: Strategic Management Journal 22, pp.615–640.
Li, S.X., Rowley, T.J. 2002. Inertia and evaluation mechanisms in interorganizational partner selection: syndicate formation among U.S. investment banks: Academy of Management Journal 45, pp.1104-1120.
McEvily, B., Zaheer, A., 1999. Bridging ties: a source of firm heterogeneity in competitive capabilities: Strategic Management Journal 20, pp.1133–1156.
Miller, D., Chen M.J., 1994. Sources and consequences of competitive inertia: a study of the U.S. airline industry, Administrative Science Quarterly 39, pp.1-23.
Mottura, P., 2006. Gli intermediari finanziari. Cambiamento, competizione, strategie e modelli istituzionali e organizzativi. Egea, Milano.
Nohria, N. 1992. Is a network perspective a useful way of studying organizations? In: N. Nohria and R. G. Eccles (Eds.), Networks and organizations: structure, form, and action. Harvard Business School Press, Boston.
Owen-Smith, J., Powell W.W., 2004. Knowledge networks as channels and conduits: the effects of spillovers in the Boston biotechnology community: Organization Science 15, pp.5-21.
Peteraf, M.A., 1993. The cornerstones of competitive advantage: a resource-based view: Strategic Management Journal 14, pp.179-191.
Podolny, J., 1993. A status-based model of market competition: American Journal of Sociology 98, pp.829–872.
Podolny, J. M., Baron, J. N., 1997. Resources and relationships: social networks and mobility in the workplace: American Sociological Review 62, pp.673-693.
Pollock, T., Porac, J., Wade, J., 2004. Constructing deal networks: brokers as network architects in the U.S. IPO market and other examples: Academy of Management Review 29, pp.50–72.
Powell, W.W., Koput, K.W., Smith-Doerr, L. Owen-Smith, J., 1999. Network position and firm performance: organizational returns to collaboration in the biotechnology industry. In: J. Hagan and K. S. Cook (Eds.), Research in the sociology of organizations: 129–159. Greenwich, CT: JRI Press.
Ritter, J.R., Welch, I., 2002. A review of IPO activity, pricing and allocations: Journal of Finance 57, pp.1795-1828.
Rosenberg, N., 1982. Inside the black box: technology and economics. Cambridge University Press, New York.
Rowley, T., Behrens, D., Krackhardt, D., 2000. Redundant governance structures: an analysis of structural and relational embeddedness in the steel and semiconductor industries: Strategic Management Journal 21, pp.369-286.
Salancik, G.R., Pfeffer, J., 1977. Who gets power and how they hold on to it: a strategic contingency model of power: Organizational Dynamics 5, pp.3-21.
Shipilov, A., 2006. Network strategies and performance in Canadian investment banks: Academy of Management Journal 49, pp.590-604.
Smith, K.G., Grimm, C., Gannon, M., Chen, M.J., 1991. Organizational information processing, competitive responses and performance in the U.S. domestic Airlines industry: Academy of Management Journal 34, pp.60-85.
Soda, G., Usai, A., Zaheer, A., 2004. Network memory: the influence of past and current networks on performance: Academy of Management Journal 47, pp.893–906.
Song, W.L., 2004. Competition and coalition among underwriters: the decision to join a syndicate: Journal of Finance 59, pp.2421-2444.
Stuart, T. E., 2000. Interorganizational alliances and the performance of firms: a study of growth and innovation rates in a high-technology industry: Strategic Management Journal 21, pp.791–811.
Teece, D.J., Pisano, G., Shuen, A., 1991. Dynamic capabilities and strategic management. Paper, Center for Research Management, University of California, Berkeley.
Tushman, M., Nadler, D., 1978. Information processing as an integrating concept in organizational design: Academy of Management Review 3, pp.613-624.
Uzzi, B., 1997. Social structure and competition in interfirm networks: Administrative Science Quarterly 42, pp.35–67.
Wasserman, S., Faust, K., 1994. Social network analysis: methods and applications. Cambridge University Press, Cambridge.
Zaheer, A., Bell, G., 2005. Benefiting from network position: firm capabilities, structural holes, and performance: Strategic Management Journal 26, pp.809-825.