Abstract
"In this dissertation, I present a holistic extension of the field of network dynamics by offering a lens on the formation, dissolution, and duration of ties. This dissertation extends the perspective on network dynamics to account for an overarching perspective on network evolution. Empirical studies on network dynamics have been extremely scarce over the past few years in spite of the continuous calls for research. The lack of empirical studies has been particularly linked to the complexity of accessing longitudinal data and the difficulty of analyzing networks over an elongated period of time. Yet, in order for the field to progress, scholars need to build a body of empirical support for theoretical assumptions regarding the genesis and dynamics of networks. To do so, I analyze firm behavior in nine open multipartner alliances in the mobile phone industry. I compile a unique database based on four data sources namely archival (Internet Archive), publicly available databases (COMPUSTAT and CapitalIQ), company websites and interviews with open multipartner alliance presidents. The database encompasses data on 2,016 firms entering and exiting all nine open multipartner alliances in the mobile phone industry from 2000 till 2012 inclusive. In the three main chapters of my dissertation, I establish building blocks to advance our knowledge on network dynamics in the empirical context of open innovation. Following the introductory chapter in my second theoretical essay, I analyze the drivers of the formation of ties. I thus build a theoretical model of interorganizational imitation that specifies the various reference groups contingent on the open multipartner alliance network entry. To do so, I draw on interorganizational imitation studies to argue that prior to entry into open multipartner alliances, firms will imitate similar others in terms of country of origin or industry. Subsequent to the initial entry into the open multipartner alliance, firms become exposed to another set of similar others. Firms will now rely on structurally equivalent firms embedded in the network when deciding on entering subsequent open multipartner alliances. Therefore in this chapter, I offer a holistic model that sheds light on the formation of both, socially distant and socially proximate ties. I extend literature on network dynamics by proposing an explanation for the formation of ties that eventually translates to changes in the whole-network structure. In the third essay, I investigate the effect of imitation of competitors and the moderating effect of the formal and informal power of firms on firm exit decisions from open multipartner alliances, which coincides with tie termination. Building on social influence models, I argue that firms tend to mimic the behavior of similar others under conditions of uncertainty. However, powerful firms are relatively immune to imitation pressures and thus, display autonomous behaviors. I decompose power into two sources, formal and informal, which are captured by hierarchal position and network centrality, respectively. My analysis reveals that (1) firms imitate similar others in terms of exit decisions and (2) power immunizes firms against social influence. The microbehavior of actors' decision to exit will lead to subsequent changes on the whole-network level. In the fourth essay, I extend the research agenda on network dynamics by introducing the notion of time. Scant research in network studies explicitly incorporates the time dimension. Therefore, I aim in this chapter to explore the drivers of duration of stay in the open multipartner alliance. This study examines the impact of sub-group leadership, group leadership, boundary spanning, and central network positions on firm duration of stay in open multipartner alliances. Building on group structure theory, I argue that firms occupying strategic roles are more likely to stay longer in the focal open multipartner alliance. The results suggest that (1) working group leaders, (2) open multipartner alliance leaders, (3) boundary spanners and (4) central firms are more likely to stay longer in the focal open multipartner alliance due to their advantageous positions. In this dissertation, I contribute to the broad agenda of network dynamics as well as open innovation literature."