Hernandez & Menon (2021)

Question 1

Networks change when

Answer 1

Networks change when either ties (relationships) or nodes (actors) are modified

Question 2

Firms undertake the various actions to achieve four classes of corporate objectives relevant to their networks:

Answer 2

• gaining novel resources (exploration)
• using existing resources efficiently (exploitation)
• increasing market power (power)
• enhancing visibility in the market (status)
• The first two generate value through efficient resource use, and the latter two through market influence.

Question 3

Authors consider two types of changes in network structure:

Answer 3

a) those affecting the local (ego) network of the focal firm, putting it in a position congruent with its corporate objectives;
b) those affecting the global network, which impact the focal firm and other firms in ways that may or may not be congruent with the focal firm’s corporate objectives.

Question 4

Network changing corporate actions

Answer 4

• Tie addition, a formation of a link between two nodes
• Tie deletion, a termination of a link between two nodes
• Node collapse, two nodes into a single node (M&A)
• Node split, divestment of a part of the business
• Node entry, new node creation
• Node exit,