The impact of project‐based interorganizational networks: Evidence from the Chinese movie industry

Abstract

AbstractProject‐based interorganizational networks are temporary and dynamic, and significantly different from stable networks for mass production. However, empirical studies on project‐based interorganizational networks are scant. Drawing upon the network literature and distinguishing between production and distribution networks, we investigate how the centrality of a project in industry networks and tie strength of the project's member firms affect project performance in terms of product quality and sales. Using data of 821 Chinese movie projects during 2015–2018, we find empirical evidence that a project's centrality in the production network enhances product quality and that in the distribution network elevates product sales. Interestingly, weak ties in the production team contribute to product quality while strong ties in the distribution team improve product sales. This study advances the literature on project‐based industries and interorganizational networks. It highlights the distinction between production and distribution networks in project‐based industries and sheds light on the differential roles of a project's centrality and tie strength in both networks. These findings also offer novel insights to managers in project‐based industries.