STATUS HOMOPHILY AND INDUSTRY LIFE CYCLE IN THE PREPACKAGED SOFTWARE INDUSTRY

Abstract

ABSTRACT This study focuses on a dynamic view of status homophily at a macro level (e.g., the industry). The authors investigate how the degree of status homophily in alliances evolves depending on the life cycle stage of the industry in which firms form alliances. We propose that the degree of status homophily increases in the introduction, growth and maturity stages, while it decreases in the decline stage. Our analysis on the prepackaged software industry from 1990 to 2010 moderately supports our expectations. Keywords Social Status, Industry Life Cycle, Strategic Alliances, Partner selection, Software Industry