Abstract

Purpose – The purpose of this study was to analyze the network structure of automotive companies linked by cross-shareholding, joint ventures, manufacturing contracts and alliances, from 2004 to 2012. The study also explored how the network structure affects the competition in the field. Design/methodology/approach – The sample involved 3695 dyads. Based on this data, it was possible to build and assess networks using Gephi and UCINET software. The study considered network analysis metrics such as centrality, group and network densities temporally. Thus, associated with a contextual and longitudinal analysis, the construction of sociograms allowed visualization of the interactional structure and the automakers’ position in the field. Findings – Results showed that the internationalization and growth of automakers and suppliers are made possible through these relationships among companies (cross-shareholding, joint ventures, manufacturing contracts and alliances). Connections may generate greater power, access to resources and market opportunities. It also enhanced the elaboration of inferences about how these resources influence the competition in the field. Originality/value – The increasing importance of this relational resource shapes the industry competitive structure, which is composed of cooperative and competitive relationships found in meso-level orders.

Highlights

  • Meso-level studies are increasingly important in economic sociology, institutional theory and organizational analysis, enhancing the diffusion of the concepts of field (Fligstein & McAdam, 2012), social networks (Granovetter, 1985) and strategic groups (Garcia-Pont & Nohria, 2002; Gomes-Casseres, 2003; Lazzarini, 2008; Nohria & Garcia-Pont, 1991)

  • Companies tend to relate to others in order to keep or improve their position in the field (Fligstein & McAdam, 2012), by accumulating resources (Garcia-Pont & Nohria, 2002; GomesCasseres, 2003) and knowledge of the market (Powell & Smith-Doer, 1994)

  • The configuration of interactions among these groups of companies play a significant role in value appropriation by the actors (Lavie, 2007), defining the incumbents of fields (Fligstein, 1991; Fligstein & McAdam, 2012) and in control and complementarity of resources (Pfeffer & Salancik, 2003)

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Summary

Introduction

Meso-level studies are increasingly important in economic sociology, institutional theory and organizational analysis, enhancing the diffusion of the concepts of field (Fligstein & McAdam, 2012), social networks (Granovetter, 1985) and strategic groups (Garcia-Pont & Nohria, 2002; Gomes-Casseres, 2003; Lazzarini, 2008; Nohria & Garcia-Pont, 1991). We suggest that groups operate within strategic action fields (Fligstein & McAdam, 2012) and that the position occupied by actors in different networks is a significant measure of the social capital (Bourdieu, 2005) or the relational resources (Gulati, 2007, Lavie, 2008) dominated by companies to maintain or improve their position in the competitive arena. The social network analysis is used to measure resource endowments of different companies in the automotive industry and their changes between 2004 and 2014. This technique is based on the regularity of the structures of ties among nodes (Wasserman & Faust, 1994). It is relevant to understand how the position in the network relates to the shared meanings of actors, who are the incumbents in the field and why

Fields
The rise of strategic groups in fields
Network analysis
Data collection
Population and sample
Data assessment
Networks density and modularity
Network centrality: companies’ level
Groups and networks
Social capital and fields
Discussion
Full Text
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