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Better with Age? Tie Longevity and the Performance Implications of Bridging and Closure

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  • Joel A. C. Baum

    (Rotman School of Management, University of Toronto, Toronto, Ontario M5S 3E6, Canada)

  • Bill McEvily

    (Rotman School of Management, University of Toronto, Toronto, Ontario M5S 3E6, Canada)

  • Tim J. Rowley

    (Rotman School of Management, University of Toronto, Toronto, Ontario M5S 3E6, Canada)

Abstract
We examine the extent to which performance effects of firms' network positions vary with the ages of the ties comprising those positions. Our analysis of Canadian investment banks' underwriting syndicate ties indicates that the performance benefits of closure ties increase with age, whereas benefits of bridging ties decrease with age. We also find that benefits yielded by hybrid network positions, combining elements of both closure and bridging, are greatest when old closure ties are combined with either very young or very old bridging ties. Our findings support the idea that the advantages firms gain (or do not) from their network positions depend on the relational character of the ties comprising them, highlighting the risk of theorizing structural network effects without also considering the relational and temporal dynamics associated with network positions.

Suggested Citation

  • Joel A. C. Baum & Bill McEvily & Tim J. Rowley, 2012. "Better with Age? Tie Longevity and the Performance Implications of Bridging and Closure," Organization Science, INFORMS, vol. 23(2), pages 529-546, April.
    • Handle: RePEc:inm:ororsc:v:23:y:2012:i:2:p:529-546
    DOI: 10.1287/orsc.1100.0566
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    References listed on IDEAS

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    Cited by:

    1. Maxim Sytch & Adam Tatarynowicz & Ranjay Gulati, 2012. "Toward a Theory of Extended Contact: The Incentives and Opportunities for Bridging Across Network Communities," Organization Science, INFORMS, vol. 23(6), pages 1658-1681, December.
    2. Yi-Ju Lo & Tung M. Hung, 2017. "Is a powerful rival a right partner?," Review of Managerial Science, Springer, vol. 11(3), pages 661-690, July.
    3. Raphaël Suire & Jérôme Vicente, 2014. "Récents enseignements de la théorie des réseaux en faveur de la politique et du management des clusters," Economics Working Paper Archive (University of Rennes & University of Caen) 201409, Center for Research in Economics and Management (CREM), University of Rennes, University of Caen and CNRS.
    4. Thorsten Koch & Josef Windsperger, 2017. "Seeing through the network: Competitive advantage in the digital economy," Journal of Organization Design, Springer;Organizational Design Community, vol. 6(1), pages 1-30, December.
    5. Cassi, Lorenzo & Plunket, Anne, 2010. "The determinants of co-inventor tie formation: proximity and network dynamics," MPRA Paper 27303, University Library of Munich, Germany.
    6. Lorenzo Cassi & Anne Plunket, 2015. "Research Collaboration in Co-inventor Networks: Combining Closure, Bridging and Proximities," Regional Studies, Taylor & Francis Journals, vol. 49(6), pages 936-954, June.
    7. Lorenzo Cassi & Anne Plunket, 2014. "Proximity, network formation and inventive performance: in search of the proximity paradox," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 53(2), pages 395-422, September.
    8. Ben M. Bensaou & Charles Galunic & Claudia Jonczyk-Sédès, 2014. "Players and Purists: Networking Strategies and Agency of Service Professionals," Organization Science, INFORMS, vol. 25(1), pages 29-56, February.
    9. Joan Crespo & Jérôme Vicente & Frédéric Amblard, 2016. "Micro-behaviors and structural properties of knowledge networks: toward a ‘one size fits one’ cluster policy," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 25(6), pages 533-552, September.
    10. Gautam Ahuja & Giuseppe Soda & Akbar Zaheer, 2012. "The Genesis and Dynamics of Organizational Networks," Organization Science, INFORMS, vol. 23(2), pages 434-448, April.
    11. Marco Tortoriello & Ray Reagans & Bill McEvily, 2012. "Bridging the Knowledge Gap: The Influence of Strong Ties, Network Cohesion, and Network Range on the Transfer of Knowledge Between Organizational Units," Organization Science, INFORMS, vol. 23(4), pages 1024-1039, August.
    12. Joan Crespo & Raphaël Suire & Jérôme Vicente, 2016. "Network structural properties for cluster long-run dynamics: evidence from collaborative R&D networks in the European mobile phone industry," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 25(2), pages 261-282.
    13. Michelle Rogan, 2014. "Too Close for Comfort? The Effect of Embeddedness and Competitive Overlap on Client Relationship Retention Following an Acquisition," Organization Science, INFORMS, vol. 25(1), pages 185-203, February.
    14. Simone Santoni & Paolo Ferri & Maria Lusiani, 2013. "Novelty Conduits and Forms of Network Ties: To Bond or to Bridge?," Working Papers 34, Venice School of Management - Department of Management, Università Ca' Foscari Venezia.
    15. Robson, Matthew J. & Katsikeas, Constantine S. & Schlegelmilch, Bodo B. & Pramböck, Barbara, 2019. "Alliance capabilities, interpartner attributes, and performance outcomes in international strategic alliances," Journal of World Business, Elsevier, vol. 54(2), pages 137-153.
    16. Bill McEvily & Jonathan Jaffee & Marco Tortoriello, 2012. "Not All Bridging Ties Are Equal: Network Imprinting and Firm Growth in the Nashville Legal Industry, 1933–1978," Organization Science, INFORMS, vol. 23(2), pages 547-563, April.
    17. Khanna, Rajat, 2021. "Aftermath of a tragedy: A star's death and coauthors’ subsequent productivity," Research Policy, Elsevier, vol. 50(2).
    18. Andrew V. Shipilov & Stan Xiao Li, 2012. "The Missing Link: The Effect of Customers on the Formation of Relationships Among Producers in the Multiplex Triads," Organization Science, INFORMS, vol. 23(2), pages 472-491, April.
    19. Soda, Giuseppe & Zaheer, Akbar & Sun, Xiaoming & Cui, Wentian, 2021. "Brokerage evolution in innovation contexts: Formal structure, network neighborhoods and knowledge," Research Policy, Elsevier, vol. 50(10).
    20. David H. Zhu & James D. Westphal, 2021. "Structural power, corporate strategy, and performance," Strategic Management Journal, Wiley Blackwell, vol. 42(3), pages 624-651, March.
    21. Aven, Brandy & Morse, Lily & Iorio, Alessandro, 2021. "The valley of trust: The effect of relational strength on monitoring quality," Organizational Behavior and Human Decision Processes, Elsevier, vol. 166(C), pages 179-193.
    22. Joan Crespo & Frédéric Amblard & Jérôme Vicente, 2015. "Simulating micro behaviours and structural properties of knowledge networks: toward a “one size fits one” cluster policy," Papers in Evolutionary Economic Geography (PEEG) 1503, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Feb 2015.
    23. José-Antonio Belso-Martínez & Manuel Expósito-Langa, 2015. "Persistence and extinction of brokerage roles in clusters: the role of status, former experiences and extra-cluster relationships," Papers in Evolutionary Economic Geography (PEEG) 1501, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Jan 2015.
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