Abstract: "Networks in Transition: How Industry Events (Re)shape Interfirm Relationships", Ravindranath Madhavan, Balaji R. Koka & John E. Prescott, Strategic Management Journal, May 1998, Volume 19(5), pp. 439-459.

Interfirm relationship networks are strategic resources that can potentially be shaped by managerial action. As a first step towards understanding how managers can shape networks, we develop a framework which explains how industry networks evolve over time and in response to specific events. Our main thesis is that industry events may be either structure-reinforcing or structure-loosening, and that their potential structural impact may be predicted in advance. We validate our hypotheses with longitudinal data on the strategic alliance network in the global steel industry.