Abstract

This study proposes to investigate the variance of network configurations between the firms of different countries. The research not only explores the differences but also attempts to explain potential sources for these differences. The model of the project indicates that the structure of inter-organizational networks is a function of two interrelated factors: the availability of strategic resources and the institutional profile of the domain of inter-organizational networks. The results suggest that the institutional profile has a direct effect on the network structure and that the availability of resources fully mediates the relationship between the regulative pillar and the network structure.

This study compares the network structures of 18 countries that have apparent differences in their institutional profiles. To neutralize the industry effect on network structure, the comparison is conducted for the biomedical industry alone. Two databases have been used to ensure the reliability of the network data: SDC Platinum and RECAP Recombinant Capital. Finally, Social Network Analysis and Hierarchical Linear Modeling (HLM) techniques have been utilized in this project.

This research contributes to the international business literature by exploring the significant role that institutional differences play in explaining countries’ differences in their network structures. The study also contributes to the discussion on the preference of closed vs. open network structures in the strategic management literature by introducing the contingency of countries to network structure preferences.