Designing an Institutional Investor's Collaborative Network: A Case Study of Value Network Analysis

Parts of this working paper (Section 2.0 plus Table 1) will appear in Chapter 2 of the book, Reframing Finance: New Models for Long-Term Investment (Monk, A. H. B., R. Sharma, and D. Sinclair), published by the Stanford University Press, Forthcoming

60 Pages Posted: 31 Aug 2016 Last revised: 3 Sep 2016

See all articles by Wen Feng

Wen Feng

Stanford University, Global Projects Center

Rajiv Sharma

Stanford University

Ashby Monk

Stanford University

Date Written: January 29, 2016

Abstract

As elaborated in our paper — Social Capital and Building an Institutional Investor’s Collaborative Network — a new “collaborative” model of investing lies at the heart of our re-intermediation thesis, and this model is premised upon institutional investors forming broad and deep relationships with investment partners to build their social capital. In this paper, we aim to provide practical guidance for an ego investor to maximize the effectiveness and efficiency of its collaboration strategy, by developing a generic model for the collaborative investment network, using the results from a rigorous value network analysis. Specifically, our model shows the great potential of value network analysis in managing the complexity and uncertainty of exchange activities between institutional investors for multiple types of resources as well as enhancing the dynamic capabilities of institutional investors by providing them a transparent, collaborative, and live platform to continuously and consistently learn from the past and quickly adapt to the internal and external changes in a networked environment. Further, our next goals include extending the level of value network analysis from an ego investor to the whole network, studying the longitudinal evolution of a collaborative investment network, as well as minimizing the potential moral hazard, free-riding, and other social dilemmas associated with the implementation of collaboration strategy.

Keywords: Institutional Investment, Collaborative Network, Network Design, Value Network Analysis

JEL Classification: G00, G20, G23

Suggested Citation

Feng, Wen and Sharma, Rajiv and Monk, Ashby, Designing an Institutional Investor's Collaborative Network: A Case Study of Value Network Analysis (January 29, 2016). Parts of this working paper (Section 2.0 plus Table 1) will appear in Chapter 2 of the book, Reframing Finance: New Models for Long-Term Investment (Monk, A. H. B., R. Sharma, and D. Sinclair), published by the Stanford University Press, Forthcoming, Available at SSRN: https://ssrn.com/abstract=2832637 or http://dx.doi.org/10.2139/ssrn.2832637

Wen Feng (Contact Author)

Stanford University, Global Projects Center ( email )

473 Via Ortega, Room 269C
Stanford, CA 94305
United States

Rajiv Sharma

Stanford University ( email )

Stanford, CA 94305
United States

Ashby Monk

Stanford University ( email )

United States

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
107
Abstract Views
1,033
rank
323,979
PlumX Metrics