Better With Age? Tie Longevity and the Performance Implications of Bridging and Closure

32 Pages Posted: 27 Nov 2007

See all articles by Joel A. C. Baum

Joel A. C. Baum

University of Toronto - Joseph L. Rotman School of Management

Bill McEvily

University of Toronto - Rotman School of Management

Tim Rowley

University of Toronto - Rotman School of Management

Date Written: November 24, 2007

Abstract

We examine the dependence of the performance effects of firms' network positions on the ages of the ties comprising them. Our analysis of Canadian investment banks' underwriting syndicate ties indicates that the performance benefits of closure increase with tie age, while benefits of bridging decrease with tie age. We also find that benefits yielded by hybrid network positions combining elements of both closure and bridging are greatest when old closure ties are combined with either very young or very old bridging ties. Our findings support the idea that the advantages firms gain (or do not) from their network positions depend on the character of the ties (e.g., age) comprising them, highlighting the risk of theorizing structural network effects without also considering the qualities of the ties through which particular structural benefits accrue.

Keywords: interfirm networks,firm performance, underwriting syndicates

JEL Classification: G24, L20, G20, D20

Suggested Citation

Baum, Joel A.C. and McEvily, William J. and Rowley, Tim, Better With Age? Tie Longevity and the Performance Implications of Bridging and Closure (November 24, 2007). Rotman School of Management Working Paper No. 1032282, Available at SSRN: https://ssrn.com/abstract=1032282 or http://dx.doi.org/10.2139/ssrn.1032282

Joel A.C. Baum (Contact Author)

University of Toronto - Joseph L. Rotman School of Management ( email )

University of Toronto
105 St. George Street
Toronto, ON, M5S 3E6
Canada
416-978-4914 (Phone)
416-978-4629 (Fax)

HOME PAGE: http://www.rotman.utoronto.ca/~baum

William J. McEvily

University of Toronto - Rotman School of Management ( email )

105 St. George Street
Toronto, Ontario M5S 3E6 M5S1S4
Canada

Tim Rowley

University of Toronto - Rotman School of Management ( email )

105 St. George Street
Toronto, Ontario M5S 3E6 M5S1S4
Canada

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