Acquisitions, Node Collapse, and Network Revolution

• 成果类型: Article
• 署名作者: Hernandez, Exequiel; Menon, Anoop
• 署名单位: University of Pennsylvania
• 刊物名称: MANAGEMENT SCIENCE
• ISSN/ISSBN: 0025-1909
• DOI: 10.1287/mnsc.2016.2691
• 发表日期: 2018
• 页码: 1652-1671
• 关键词: NETWORKS; node collapse; Mergers and Acquisitions; COMPETITIVE DYNAMICS; simulations and agent-based modeling

摘要

We explore a novel mechanism of network change that occurs when a firm acquires another one and inherits its network ties. Such node collapse can radically restructure the network in one transaction, constituting a revolutionary change compared with the incremental effect of tie additions and deletions, which have been the focus of prior research. We explore several properties of node collapses: their efficacy in helping firms achieve superior network positions, the externalities they impose on other network actors, and how they provide exclusive control over both internal and network resources. Using a simulation in which actors compete to acquire one another, we model network dynamics driven by node collapses. We find that node collapses directly affect the performance of the acquirer and indirectly that of other actors, and that the direction of network evolution hinges on the degree to which firms pursue internal versus network synergies through node collapses.