Cross-cutting ties, organizational density, and new firm formation in the US biotech industry, 1994-1998

J. Bae, F.C. Wezel, J. Koo

Research output: Contribution to journalArticleScientificpeer-review

Abstract

This study examines the role of cooperative relations among incumbents in the formation of new firms. We argue that cooperative interfirm relations that bridge geographically remote and diverse sources of knowledge—cross-cutting ties—contribute to new firm formation. Employing data on state-level entries into the U.S. biotech industry from 1994 to 1998, we find support for the following hypotheses: the formation of new firms in a focal region of an industry is positively related to the number of cross-cutting ties; the number of cross-cutting ties negatively moderates the effects of organizational density on the formation of new firms.
Original languageEnglish
Pages (from-to)295-311
JournalAcademy of Management Journal
Volume54
Issue number2
Publication statusPublished - 2011

Fingerprint

Industry
Biotech
New firm formation
New firms
Incumbents
Inter-firm relations

Cite this

@article{7499dd09d3a34fb4bdd4f816833ccfd6,
title = "Cross-cutting ties, organizational density, and new firm formation in the US biotech industry, 1994-1998",
abstract = "This study examines the role of cooperative relations among incumbents in the formation of new firms. We argue that cooperative interfirm relations that bridge geographically remote and diverse sources of knowledge—cross-cutting ties—contribute to new firm formation. Employing data on state-level entries into the U.S. biotech industry from 1994 to 1998, we find support for the following hypotheses: the formation of new firms in a focal region of an industry is positively related to the number of cross-cutting ties; the number of cross-cutting ties negatively moderates the effects of organizational density on the formation of new firms.",
author = "J. Bae and F.C. Wezel and J. Koo",
year = "2011",
language = "English",
volume = "54",
pages = "295--311",
journal = "Academy of Management Journal",
issn = "0001-4273",
publisher = "Academy of Management",
number = "2",

}

Cross-cutting ties, organizational density, and new firm formation in the US biotech industry, 1994-1998. / Bae, J.; Wezel, F.C.; Koo, J.

In: Academy of Management Journal, Vol. 54, No. 2, 2011, p. 295-311.

Research output: Contribution to journalArticleScientificpeer-review

TY - JOUR

T1 - Cross-cutting ties, organizational density, and new firm formation in the US biotech industry, 1994-1998

AU - Bae, J.

AU - Wezel, F.C.

AU - Koo, J.

PY - 2011

Y1 - 2011

N2 - This study examines the role of cooperative relations among incumbents in the formation of new firms. We argue that cooperative interfirm relations that bridge geographically remote and diverse sources of knowledge—cross-cutting ties—contribute to new firm formation. Employing data on state-level entries into the U.S. biotech industry from 1994 to 1998, we find support for the following hypotheses: the formation of new firms in a focal region of an industry is positively related to the number of cross-cutting ties; the number of cross-cutting ties negatively moderates the effects of organizational density on the formation of new firms.

AB - This study examines the role of cooperative relations among incumbents in the formation of new firms. We argue that cooperative interfirm relations that bridge geographically remote and diverse sources of knowledge—cross-cutting ties—contribute to new firm formation. Employing data on state-level entries into the U.S. biotech industry from 1994 to 1998, we find support for the following hypotheses: the formation of new firms in a focal region of an industry is positively related to the number of cross-cutting ties; the number of cross-cutting ties negatively moderates the effects of organizational density on the formation of new firms.

M3 - Article

VL - 54

SP - 295

EP - 311

JO - Academy of Management Journal

JF - Academy of Management Journal

SN - 0001-4273

IS - 2

ER -