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Strategic Alliance Networks in Korean Construction Industry: Network Structure and Performance of Firms  

Kim, Kon-Shik (서울산업대학교 IT정책전문대학원)
Shin, Tack-Hyun (서울산업대학교 산업정보시스템공학과)
Publication Information
Korean Journal of Construction Engineering and Management / v.10, no.4, 2009 , pp. 151-164 More about this Journal
Abstract
Strategic alliances developed as formalized inter-organizational relationships are core vehicles to share information, resources and knowledge. The structural characteristics of strategic network constructed by strategic alliances have been important agenda in strategic management discipline. This paper has two folds in analysing the strategic network formulated by project level alliances in Korean construction industry. First, we investigate the strategic network using the tools and methods of social network analysis, such as centrality, cohesion, structural equivalence, and power law. Second, the performance of firms within networks are analysed longitudinally with panel data analysis. We have found that the strategic networks in this industry has scale-free characteristics, where the degree distribution fits the power law, and the vertically equivalent structure is clear. We also present that the performance of firms are continuously affected by the degree centrality of firms in this network for the last 10 years.
Keywords
social network; strategic alliance; scale-free; cohesion; centrality; structural equivalence;
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