The Roles of Supply Networks and Board Interlocks in Firms’ Technological Entry and Exit: Evidence from the Chinese Automotive Industry

Abstract

ABSTRACT In this research, we explore how supply networks and board interlocks – as distinct, yet parallel interorganizational networks – jointly influence firms’ entry into new technology domains and exit from old technology domains. Drawing from the perspectives of social networks and organizational learning we highlight the relevance of the interdependency between these networks for a firm's technological entry and exit decisions. We argue that a firm that maintains a large number of supplier ties is more likely to enter new technology domains and exit from old technology domains instead. We further find empirical evidence that the degree centrality of a firm in its board interlock network strengthens these effects. Our theoretical arguments are supported through stochastic actor-based modeling analysis for the longitudinal and multilevel networks of 86 firms active in the Chinese automotive during 2011–2015. These findings inform the literature on interorganizational network dynamics as we insert relational pluralism to examine the complexities of organizational relationships as antecedents to a firms’ technological entry and exit. Finally, we imagine the implications of our analysis for management as they shed light on how multiple interorganizational relationships affect firms’ decisions on new technology entry and old technology exit. 摘要： 本研究探讨了供应网络和董事会连锁作为不同但平行的组织间网络是如何共同影响企业进入新技术领域和退出旧技术领域的。基于社会网络和组织学习视角，本文强调了这两类网络影响企业技术进入和退出决策的相互依赖性。本文认为保持大量供应商关系的企业更有可能进入新的技术领域以及退出旧的技术领域。同时，企业在董事会连锁网络中的中心度会增强这种效应。作者基于随机行动者模型，对2011-2015年间中国汽车行业86家公司的数据进行了多层次纵向网络实证分析，结果支持了本文的理论观点。本研究引入关系多元化视角，来揭示组织间网络关系复杂性对于企业技术进入和退出的影响，丰富了组织间网络动态相关文献。同时，对于企业通过管理多重组织间关系进而做出新技术进入和旧技术退出决策具有重要实践启示。