The evolution of the network structure in the ICT sector

Abstract

This study examines the development of collaborative relationships in the Information and Communications Technology (ICT) sector. Companies form close relationships with other companies to access complementary resources, and such links create networks that promote value delivery. This paper provides a theoretical outline of the structural network and alliance research. We also analyze the evolution of the ICT network in terms of position and power relations at different time spans, and provide an overview of the theoretical basis of interfirm networking. The network dynamics and evolution based on structural analysis of the network is clarified by describing the alliance evolution of different actors in a case ICT sector network. We also analyze the actors’ structural position in the industry network by adapting the algorithms for structural network analysis. Finally, we compare the companies’ structural position in the network and their R&D input. Our results indicate that value networks emerge and develop to a large extent through their structure. A strong position in these networks seems to indicate external resource orientation. Furthermore, the results of this paper provide indications about the circumstances and effects of a company's structural position in an ICT industry network.