Networks throughout an institutional transition: the case of the former Meliá touristic group (1932-1978)

Abstract

ABSTRACT This study explores how networks for entrepreneurial activities evolve and change during an institutional transition at the macro level. For this purpose, we present the historical case study of Meliá, a pioneering company in the development of the Spanish tourism industry during Franco´s Regime (1939–1975), when the country evolved from interventionism and isolation toward an increasingly market-oriented economy. Our study shows how Meliá’s networks co-evolved with their institutional framework, resulting in a transformation in their composition, purpose, and outcomes. Through historical contextualization, our paper allows us to capture the nuances of an institutional transition as well as to better understand the change processes of networks, the significance of strong and weak ties as the firm matures, and the dynamics of network brokerage over time. Therefore, our research contributes to the literature on networks and institutional transitions showing the value of a history-in theory perspective.