Should you bank on your network? Relational and positional embeddedness in the making of financial capital

Strategic Organization

Volumn 3, Issue 3, 2005, Pages 279-309

  Shipilov, Andrew V ^a  

^a INSEAD   (France)

Author keywords

embeddedness; investment banking; networks; status

Indexed keywords

EID: 84993720603     PISSN: 14761270     EISSN: None     Source Type: Journal    
DOI: 10.1177/1476127005055793     Document Type: Article

References (62)

1. Ahuja, G. (2000) ‘Collaboration Networks, Structural Holes, and Innovation: A Longitudinal Study’, Administrative Science Quarterly 45(3): 425-455.
2. Baker, W. (1990) ‘Market Networks and Corporate Behavior’, American Journal of Sociology 96: 589-625.
3. Baker, W. and Faulkner, R. (2002) ‘Interorganizational Networks’, in Joel A.C. Baum (ed.) Companion to Organizations, pp. 521-540. Oxford: Blackwell.
4. Barron, D. (2004) ‘Employing Identities in Organizational Ecology’, Industrial and Corporate Change 13(1): 3-32.
5. Baum, J. A. C., Calabrese, T. and Silverman, B. (2000) ‘Don't Go It Alone: Alliance Network Composition and Startups’ Performance in Canadian Biotechnology’, Strategic Management Journal 21: 267-294.
6. Baum, J. A. C. and Mezias, S. (1992) ‘Localized Competition and Organizational Failure in the Manhattan Hotel Industry’, Administrative Science Quarterly 37: 580-604.
7. Baum, J. A. C., Rowley, T. and Shipilov, A. (2004) ‘The Small World of Canadian Capital Markets: Statistical Mechanics of Investment Bank Syndicate Networks, 1952-1989’, Canadian Journal of Administrative Sciences 21(4): 307-325.
8. Baum, J. A. C., Rowley, T., Shipilov, A. V. and Chuang, Y. (2004) ‘Dancing with Strangers: Aspiration Performance and the Search for Underwriting Syndicate Partners’. Paper published in the Academy of Management Best Papers Proceedings, New Orleans, LA.
9. Baum, J. A. C., Shipilov, A. V. and Rowley, T. (2003) ‘Where do Small Worlds Come From?’, Industrial and Corporate Change 12(3): 697-703.
10. Beatty, R. and Ritter, J. (1986) ‘Investment Banking, Reputation and the Underpricing of Initial Public Offerings’, Journal of Financial Economics 15: 213-232.
11. Bonacich, P. (1987) ‘Power and Centrality: The Family of Measures’, American Journal of Sociology 92: 1170-1183.
12. Burt, R. (1992) Structural Holes: The Social Structure of Competition. Cambridge, MA: Harvard University Press.
13. Chen, H. and Ritter, J. (2000) ‘The Seven Percent Solution’, The Journal of Finance 40(3): 1105-1131.
14. Chung, S. A., Singh, H. and Lee, K. (2000) ‘Complimentarity, Status Similarity and Social Capital as Drivers of Alliance Formation’, Strategic Management Journal 21(1): 1-22.
15. Davis, G., Yoo, M. and Baker, W. E. (2003) ‘The Small World of the American Corporate Elite, 1991-2001’, Strategic Organization 1(3): 301-326.
16. Deephouse, D. (1999) ‘To be Different, or to be the Same? It's a Question (and Theory) of Strategic Balance’, Strategic Management Journal 20: 147-166.
17. Dunbar, C. (2000) ‘Factors Affecting Investment Bank Initial Public Offering Market Share’, Journal of Financial Economics 55: 3-41.
18. Eccles, R. and Crane, D. (1988) Doing Deals: Investment Banks at Work. Cambridge, MA: Harvard Business School Press.
19. Fligstein, N. (1996) ‘Markets as Politics: A Political-cultural Approach to Market Institutions’, American Sociological Review 61: 656-673.
20. Frank, R. H. (1985) Choosing the Right Pond: Human Behavior and the Quest for Status. New York: Oxford University Press.
21. Gargiulo, M. and Benassi, M. (2000) ‘Trapped in Your Own Net? Network Cohesion, Structural Holes, and the Adaptation of Social Capital’, Organization Science 11(2): 183-196.
22. Gulati, R. (1995) ‘Does Familiarity Breed Trust? The Implications of Repeated Ties for Contractual Choice in Alliances’, Academy of Management Journal 38(1): 85-112.
23. Gulati, R. (1999) ‘Network Location and Learning: The Influence of Network Resources and Firm Capabilities on Alliance Formation’, Strategic Management Journal 20(5): 397-420.
24. Gulati, R. and Gargiulo, M. (1999) ‘Where do Inter-organizational Networks Come From?’, American Journal of Sociology 104(5): 1439-1493.
25. Gulati, R., Dialdin, D. and Wang, L. (2002) ‘Organizational Networks’, in J. A. C. Baum (ed.) Companion to Organizations, pp. 281-304. Oxford: Blackwell.
26. Hannan, M. and Freeman, J. (1989) Organizational Ecology. Cambridge, MA: Harvard Business School Press.
27. Hirchman, A. (1970) Exit, Voice and Loyalty: Responses of Decline in Firms, Organizations and States. Cambridge, MA: Harvard University Press.
28. Hite, J. and Hesterly, D. (2001) ‘The Evolution of Firm Networks: From Emergence to Early Growth of the Firm’, Strategic Management Journal 22: 275-286.
29. Jacobson, R. (1990) ‘Unobservable Effects and Business Performance’, Marketing Science 9: 74-85.
30. Jensen, M. (2003) ‘The Role of Network Resources in Market Entry: Commercial Banks’ Entry into Investment Banking 1991-1997’, Administrative Science Quarterly 48: 466-497.
31. Judge, G., Griffiths, W., Hill, C. and Lee, T.C. (1985) Theory and Practice in Econometrics. New York: Wiley.
32. Kennedy, P. (1992) A Guide to Econometrics, 4th edn. Cambridge, MA: MIT Press.
33. Khanna, T., and Palepu, K. (2000) ‘The Future of Business Groups in Emerging Markets: Longrun Evidence from Chile’, Academy of Management Journal 43: 268-285.
34. Li, S. X. and Berta, W. (2002) ‘The Ties That Bind: Strategic Actions and Status Structure in the US Investment Banking Industry’, Organization Studies 23: 339-368.
35. Lincoln, J. R., Gerlach, M. and Takahashi, P. (1992) ‘Keiretsu Networks in the Japanese Economy: A Dyad of Intercorporate Ties’, American Sociological Review 57: 561-585.
36. McKendrick, D., Jaffee, J., Carroll, G., Khessina, O. (2003) ‘In the Bud? Disk Array Producers as a (Possibly) Emergent Organizational Form’, Administrative Science Quarterly 48: 60-93.
37. Maginson, W. and Weiss, K. (1991) ‘Venture Capitalist Certification in Initial Public Offerings’, Journal of Finance 46: 879-904.
38. Owen-Smith, J. and Powell, W. (2004) ‘Knowledge Networks as Channels and Conduits: The Effects of Spillovers in the Boston Biotechnology Community’, Organization Science 15(1): 5-21.
39. Padgett, J. and Ansell, C. (1993) ‘Robust Action and the Rise of the Medici, 1400-1434’, American Journal of Sociology 98(6): 1259-1319.
40. Podolny, J. (1993) ‘A Status-based Model of Market Competition’, American Journal of Sociology 98: 829-872.
41. Podolny, J. (1994) ‘Market Uncertainty and the Social Character of Economic Exchange’, Administrative Science Quarterly 39(3): 458-470.
42. Podolny, J. (2001) ‘Networks as the Pipes and Prisms of the Market’, American Journal of Sociology 1: 33-60.
43. Podolny, J., Stuart, T. and Hannan, M. (1996) ‘Networks, Knowledge, and Niches: Competition in the Worldwide Semiconductor Industry, 1984-1991’, American Journal of Sociology 102: 659-689.
44. Porter, M. E. (1980) Competitive Strategy. New York: The Free Press.
45. Provan, K. G. and Sebastian, J. G. (1998) ‘Networks within Networks: Service Link Overlap, Organizational Cliques, and Network Effectiveness’, Academy of Management Journal 41: 453-463.
46. Ritter, J. (1991) ‘The Long-run Performance of Initial Public Offerings’, The Journal of Finance 46(1): 3-25.
47. Romo, F. and Schwartz, M. (1995) ‘Structural Embeddedness of Business Decisions: A Sociological Assessment of the Migration Behavior of Plants in New York State between 1960 and 1985’, American Sociological Review 60: 874-907.
48. Rowley, T. and Baum, J. A. C. (2004) ‘Sophistication of Interfirm Network Strategies in the Canadian Investment Banking Industry’, Scandinavian Journal of Management 20: 103-124.
49. Rowley, T., Behrens, D. and Krackhardt, D. (2000) ‘Redundant Governance Structures: An Analysis of Structural and Relational Embeddedness in the Steel and Semiconductor Industry’, Strategic Management Journal 21: 369-386.
50. Rowley, T., Greve, H., Rao, H., Baum, J. A. C. and Shipilov, A. V. (forthcoming) ‘Time to Break up: Social and Instrumental Antecedents of Firm Exits from Cliques’, Academy of Management Journal.
51. Shipilov, A. V., Aharonson, B. and Rowley, T. (2006) ‘From Cradle to Grave: Value Generation and Partnering Uncertainty as Antecedents of Social Relationships' Formation and Decay’, in J. A. C. Baum (ed.) Advances in Strategic Management.
52. Studenmund, W. (1992) Using Econometrics. New York: Harper-Collins.
53. Thornton, P. and Ocasio, W. (1999) ‘Institutional Logics and the Historical Contingency of Power in Organizations: Executive Succession in the Higher Education Publishing Industry, 1958-1990’, American Journal of Sociology 105(3): 801-843.
54. Uzzi, B. (1996) ‘The Sources and Consequences of Embeddedness for the Economic Performance of Organizations: The Network Effect’, American Sociological Review 61: 674-698.
55. Uzzi, B. (1997) ‘Social Structure and Competition in Interfirm Networks: The Paradox of Embeddedness’, Administrative Science Quarterly 42: 35-67.
56. Uzzi, B. (1999) ‘Embeddedness in the Making of Financial Capital: How Social Relations and Networks Benefit Firms Seeking Financing’, American Sociological Review 64: 481-505.
57. Walker, G., Kogut, B. and Shan, W. (1997) ‘Social Capital, Structural Holes and the Formation of an Industry Network’, Organization Science 8(2): 109-125.
58. Wasserman, S. and Faust, K. (1994) Social Network Analysis: Methods and Applications. Cambridge University Press.
59. Williamson, O. (1991) ‘Comparative Economic Organization: The Analysis of Discrete Structural Alternatives’, Administrative Science Quarterly 36: 269-296.
60. Wilson, R. (1989) ‘Exchange’, in John Eatwell, Murray Milgate, and Peter Newman (eds) Allocation, Information and Markets, The New Palgrave: A Dictionary of Economics, pp. 83-93. New York: W.W. Norton.
61. Zuckerman, E. (1999) ‘Categorical Imperative: Securities Analysts and the Legitimacy Discount’, American Journal of Sociology 104(5): 1398-1438.
62. Zukin, S. and Di Maggio, P. (1990) Structures of Capital: The Social Organization of the Economy. Cambridge, MA: Cambridge University Press.