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Network formation is often said to be driven by social capital considerations. A typical pattern observed in the empirical data on strategic alliances is that of small-world networks: dense subgroups of firms interconnected by (few) clique-spanning ties. The typical argument is that there is social capital value both to being embedded in a dense cluster, and to bridging disconnected clusters. In this chapter we develop and analyze a simple model of joint innovation where we are able to reproduce these features, based solely on the assumption that successful partnering demands some intermediate amount of technological similarity between the partners.

While earlier acquisition research often focused on either the acquirer or the target side of analysis, recent work has increasingly emphasized the need to understand the dyadic interrelationship between the target and the acquirer. This review aims at synthesizing research progress in the area of target–acquirer interrelationships and understanding what questions remain unanswered. The author organizes this review into three dimensions of target–acquirer interrelationship: (a) their relative attributes (what both parties are relative to each other), (b) their connections (what both parties have with each other), and (c) their interactions (what both parties do to each other). Based on the review, the author then identifies critical research gaps and opportunities for developing a more comprehensive understanding of the interrelationship between the target and the acquirer in acquisitions.

This chapter explores dominant ideologies theoretically in an organizational setting. A framework is developed to advance our understanding of how ‘dominant ideological modes of rationality’ reflect predictability through the reproduction of accepted truths, hence social order in organization. Dominant ideological modes of rationality constitute professional identity, power relations, and rationality and frame prevailing mentalities and social practices in organization. It is suggested that members’ categorization devices structure and constrain social practices. Supplementing the existent power literature, the chapter concludes that professional identity produces rationality, power and truth – truth being the overarching concept assembled through the rationalities assembled in professional members’ categorization devices. Research and managerial implications are discussed.

In this essay, we argue that understanding of meaning in relation to organizational networks warrants a more prominent place in organizational theorizing, because it fulfils a distinct role in the emergence and evolution of networks. Whereas prior studies have tended to address network structures or narrative structures, we suggest that organizational processes might be better understood when addressing the role of meaning and network structures simultaneously. We explain the implications of our argument in an online context, given the growing significance of digitally enabled networks on organizational sociality, and draw on examples in the context of organizational knowledge sharing to support our argument. We conclude by introducing a communication flow model to support the further development of research on organizational meaning networks.

Internationalizing new firms face the dual challenge of overcoming the liabilities of newness and liabilities of foreignness (Stinchcombe, 1965; Dunning, 1981; Zaheer, 1995). Because of their newness, new firms are constrained in their ability to access external resources required for survival and growth. Because of their foreignness relative to the foreign target market, internationalizing firms are disadvantaged relative to domestic firms when establishing business relationships. These disadvantages are exacerbated by the additional knowledge inputs required by the internationalization process itself: internationalizing firms face the dual challenge of both learning how to do business in a new national and institutional environment while also learning to manage the inherently complex international business organization (Johanson & Vahlne, 1990).

The field of Human Resource Management (HRM) has long recognized the importance of interpersonal influence for employee and organizational effectiveness. HRM research and practice have focused primarily on individuals’ characteristics and behaviors as a means to understand “who” is influential in organizations, with substantially less attention paid to social networks. To reinvigorate a focus on network structures to explain interpersonal influence, the authors present a comprehensive account of how network structures enable and constrain influence within organizations. The authors begin by describing how power and status, two key determinants of individual influence in organizations, operate through different mechanisms, and delineate a range of network positions that yield power, reflect status, and/or capture realized influence. Then, the authors extend initial structural views of influence beyond the positions of individuals to consider how network structures within and between groups – capturing group social capital and/or shared leadership – enable and constrain groups’ ability to influence group members, other groups, and the broader organizational system. The authors also discuss how HRM may leverage these insights to facilitate interpersonal influence in ways that support individual, group, and organizational effectiveness.

We examine how digital technologies enable distributed actors to collaborate asynchronously on virtual projects. We use Wikipedia and associated wiki digital technology as the research site for our exploration. Our probe of the emergence of Wikipedia articles highlights a distinctive property of such digital technologies: in their very use, they generate a digital trace. This digital trace serves as a generative memory that facilitates ongoing cocreation, justification, and materialization of contributions from distributed actors. We examine the implications of such processes for virtual projects that embrace digital technologies with properties similar to the wiki technology used in Wikipedia.

Strategy scholars have long argued that breakthrough innovation is generated by recombining knowledge from distant domains. Even if firms have the ability to access and absorb knowledge from distant domains, however, they may fail to pay attention to such knowledge because it is seemingly irrelevant to their tasks. We draw attention to this problem of knowledge relevance and develop a theoretical model to illuminate how ideas from seemingly irrelevant (i.e., peripheral) domains can generate breakthrough innovation through the cognitive process of analogical reasoning, as well as the conditions under which this is more likely to occur. We situate our theoretical model in the context of teams in order to develop insight into the microfoundations of knowledge recombination within firms. Our model reveals paradoxical requirements for teams that help to explain why breakthrough innovation is so difficult.

Firms tend to transfer more knowledge in technology joint ventures compared to contractual technology agreements. Using insights from new institutional economics, this chapter explores to what extent the alliance governance association with interfirm knowledge transfer is sensitive to an evolving industry norm of collaboration connected to the logic of open innovation. The chapter examines 1,888 dyad-year observations on firms engaged in technology alliances in the U.S. information technology industry during 1980–1999. Using fixed effects linear models, it analyzes longitudinal changes in the alliance governance association with interfirm knowledge transfer, and how such changes vary in magnitude across bilateral versus multipartner alliances, and across computers, telecommunications equipment, software, and microelectronics subsectors. Increases in industry-level alliance activity during 1980–1999 improved the knowledge transfer performance of contractual technology agreements relative to more hierarchical equity joint ventures. This effect was concentrated in bilateral rather than multipartner alliances, and in the software and microelectronics rather than computers and telecommunications equipment subsectors. Therefore, an evolving industry norm of collaboration may sometimes make more arms-length governance of a technology alliance a credible substitute for equity ownership, which can reduce the costs of interfirm R&D. Overall, the chapter shows that the performance of material practices that constitute innovation ecosystems, such as interfirm technology alliances, may differ over time subject to prevailing institutional norms of open innovation. This finding generates novel implications for the literatures on alliances, open innovation, and innovation ecosystems.