{"title":"Business transactions and ownership ties between firms","authors":"László Lőrincz, Sándor Juhász, Rebeka O. Szabó","doi":"10.1017/nws.2023.19","DOIUrl":null,"url":null,"abstract":"Abstract In this study, we investigate the creation and persistence of interfirm ties in a large-scale business transaction network. Business transaction relations (firms buying or selling products or services to each other) are driven by economic motives, but because trust is essential to business relationships, the social connections of owners or the geographical proximity of firms can also influence their development. However, studying the formation of interfirm business transaction ties on a large scale is rare, because of the significant data demand. The business transaction and the ownership networks of Hungarian firms are constructed from two administrative datasets for 2016 and 2017. We show that direct or indirect connections in this two-layered network, including open triads in the business network, contribute to both the creation and persistence of business transaction ties. For our estimations, we utilize log-linear models and emphasize their efficiency in predicting links in such large networks. We contribute to the literature by presenting different patterns of business connections in a nationwide multilayer interfirm network.","PeriodicalId":51827,"journal":{"name":"Network Science","volume":null,"pages":null},"PeriodicalIF":1.4000,"publicationDate":"2023-10-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Network Science","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.1017/nws.2023.19","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q2","JCRName":"SOCIAL SCIENCES, INTERDISCIPLINARY","Score":null,"Total":0}
引用次数: 0
Abstract
Abstract In this study, we investigate the creation and persistence of interfirm ties in a large-scale business transaction network. Business transaction relations (firms buying or selling products or services to each other) are driven by economic motives, but because trust is essential to business relationships, the social connections of owners or the geographical proximity of firms can also influence their development. However, studying the formation of interfirm business transaction ties on a large scale is rare, because of the significant data demand. The business transaction and the ownership networks of Hungarian firms are constructed from two administrative datasets for 2016 and 2017. We show that direct or indirect connections in this two-layered network, including open triads in the business network, contribute to both the creation and persistence of business transaction ties. For our estimations, we utilize log-linear models and emphasize their efficiency in predicting links in such large networks. We contribute to the literature by presenting different patterns of business connections in a nationwide multilayer interfirm network.
期刊介绍:
Network Science is an important journal for an important discipline - one using the network paradigm, focusing on actors and relational linkages, to inform research, methodology, and applications from many fields across the natural, social, engineering and informational sciences. Given growing understanding of the interconnectedness and globalization of the world, network methods are an increasingly recognized way to research aspects of modern society along with the individuals, organizations, and other actors within it. The discipline is ready for a comprehensive journal, open to papers from all relevant areas. Network Science is a defining work, shaping this discipline. The journal welcomes contributions from researchers in all areas working on network theory, methods, and data.