NETWORKS IN TRANSITION - HOW INDUSTRY EVENTS (RE)SHAPE INTERFIRM RELATIONSHIPS

Interfirm relationship networks are strategic resources that can poten tially be shaped by managerial action. As a first step towards underst anding how managers can shape networks, we develop a framework which e xplains how industry networks evolve over time and in response to spec ific events. Our main thesis is that industry events may be either str ucture-reinforcing or structure-loosening and that their potential str uctural impact may be predicted in advance. We validate our hypotheses with longitudinal data on the strategic alliance network in the globa l steel industry. (C) 1998 John Wiley & Sons, Ltd.