Disentangling the Effects of Reputation and Network Position on the Evolution of Alliance Networks

Abstract:     
We use the panel data social network analysis program SIENA to estimate the effect of actor reputation derived from past performance on alliance formation, while controlling for other constant actor attributes, and network position. We distinguish between individual reputation based on the past performance of the organizations the individual actor has been involved in, and composite reputation that takes into account reputation spillover effects from the similarly-constituted reputations of past alliance partners. The empirical setting is the project-based film industry, which can be regarded as a constantly changing network of alliances. We focus on artistic reputation, based on the reviews of earlier films, and find that the strength of that reputation and closeness in the network of past alliances are strong predictors of alliance formation. We find weak evidence of actors with similar reputations being more likely to form alliances with each other.

Number of Pages in PDF File: 50

Keywords: reputation, social networks, project-based organization, film, siena

JEL Classification: C15, C19, C33, D20, M51

Accepted Paper Series