The evolution of technology-based alliance networks in pharmaceutical biotechnology

The dominant focus in the literature until now has been on how networks enable and constrain action, whereas the question what factors enable and constrain networks has been largely ignored. To fill this void, the paper aims to develop an understanding of the role of ex-ante factors and processes that influence network evolution. Empirically, we study network evolution in the biotechnology industry along two levels of analysis: network and dyad level. One of the key findings is that these two levels seem to change relatedly in response to exogenous environmental change. More generally, our framework contributes by elucidating not only how networks evolve, but also why they evolve in ways they do. Overall, this yields valuable insights that carry implications for the literature on learning and innovation, strategic alliances as well as on social network theory.