Organizations enter alliances with each other to access critical resources, but they rely on information from the network of prior alliances to determine with whom to cooperate. These new alliances modify the existing network, prompting an endogenous dynamic between organizational action and network structure that drives the emergence of interorganizational networks. Testing these ideas on alliances formed in three industries over nine years, the authors show that the probability of a new alliance between specific organizations increases with their interdependence, but also with their prior mutual alliances, common third parties, and joint centrality in the alliance network. The differentiation of the emerging network structure, however, mitigates the effect of interdependence and enhances the effect of joint centrality on new alliance formation. 3

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Recent studies have confirmed the importance of understanding the cognition of users and information systems (IS) professionals. These works agree that organizational cognition is far too critical to be ignored as it can impact on IS outcomes. While cognition has been considered in a variety of IS contexts, no specific methodology has dominated. A theory and method suitable to the study of cognition- defined as personal constructs that individuals use to understand IT in organizations- is Kelly's (1955) Personal Construct Theory and its cognitive mapping tool known as the repertory grid (RepGrid). This article expounds on the potential of this technique to IS researchers by considering the variety of ways the RepGrid may be employed. The flexibility of the RepGrid is illustrated by examining published studies in IS. The diagnostic qualities of the RepGrid and its mapping outcomes can be used for practical intervention at the individual and organizational levels. Keywords: research

abstract Existing strategic group studies have rarely examined ownership type as a variable to classify firms in an industry. Using Chinese firms of different ownership types, we suggest that ownership type can be a parsimonious and important variable that managers use to cognitively classify firms into different strategic groups. While ownership itself is an objective variable, we contend that different ownership types lead to different managerial outlook and mentality due to a number of macro and micro foundations giving rise to various managerial cognitions. Employing the Miles and Snow typology, we find that state-owned enterprises (SOEs) and privately-owned enterprises (POEs) tend to adopt defender and prospector strategies, respectively, while collectively-owned enterprises (COEs) and foreign-invested enterprises (FIEs) exhibit an analyser orientation that falls between defenders and prospectors on the strategy continuum. Three statistical tests suggest that ownership types can be used to successfully predict strategic group memberships in China’s emerging economy.

Abstract: How do firms respond to technical change? The role of managerial cognitive frames has not been fully exploited in existing explanations for why firms do or do not make strategic choices to invest in new technologies. Yet, it seems likely that they should play a critical part in determining strategic choices since they shape management’s perceptions about the environment and technology and about what action should be taken. This paper reports on a longitudinal field study examining the micro mechanisms of strategic choices about technology in one communications technology firm as it responded to the a radical transformation resulting from the fiber-optics revolution. Drawing on framing theory in the social movements literature, I develop a model of the role of cognitive frames in strategy-making dynamics as they are produced in the course of situated action. I propose that frames and framing strategies are tightly intertwined with interests and political strategies in producing strategic choices about technology investment. Looking at strategy-making in this way opens up the possibility for examining cognition not simply as frames nor even as a situated process of framing but as a politically charged and self-conscious process for negotiating meaning. A close examination of these framing contests sheds light on the tensions between adaptation and inertia that are central to research in the management of technology field.

Local density (the number of firms vying for similar resources in a local environment) has been overlooked in explaining foreign subsidiary performance. This study drew upon the concepts of liability of foreignness and density dependence to examine how local density within a host country affected performance—directly and indirectly— through effects on market experience and strategic conformity. We found that local density was negatively related to foreign subsidiary performance and that market experience was less beneficial in high-density environments. Strategic conformity enhanced performance in low-density environments but adversely affected performance in high-density environments. Multinational enterprise (MNE) theorists have long argued that foreign subsidiaries face disadvantages in a host country, compared to domestic firms (Hymer, 1960/1976; Zaheer, 1995). Zaheer referred to this phenomenon as the “liability of foreignness,” defining it as “the additional costs of doing business abroad that result in a competitive disadvantage for an MNE subunit ” (1995: 342). This literature suggests that such liability varies across host countries and that the greater the liability of foreignness, the worse should be foreign subsidiary performance—unless a parent MNE engages in offsetting activities or has superior resources to overcome these additional costs (Dunning, 1977; Zaheer & Mosakowski, 1997). Understanding what additional activities and/or superior resources can overcome liability of foreignness and improve performance is an important research problem not only for international management scholars, but also for corporate executives and subsidiary managers of MNEs. Market experience in a host country and isomorphism (being similar to local firms) are Earlier versions of this paper were presented at the

Many of the documents in this series are prepublication/preprint articles, which may subsequently appear (part or whole) in peer reviewed journals and books. In most cases they are draft documents, the purpose of which is to foster discussion and debate, prior to publication elsewhere, whilst ideas are still fresh. Further information about the research programme and other papers in this series can also be found at the following websites:

This paper has not undergone formal review or approval of the faculty of the ILR School. It is intended to make results of Center research available to others interested in preliminary form to encourage discussion and suggestions. Most (if not all) of the CAHRS Working Papers are available for reading at the Catherwood Library. For information on what’s available link to the Cornell Library Catalog:

Intensive Work First draft – please do not cite without author’s permission This paper examines how and why a professional elite – the so-called “Magic Circle” of UK law firms – has become a taken-for-granted, legitimate, and extremely durable categorization of the most highly-reputed firms in the UK legal profession. Using both interview and documentary data, this study examines the process of institutionalization and belief formation in the context of two previously unresearched, and unconnected, models- the discursive model of institutionalization proposed by Phillips, Lawrence & Hardy (2004), and the model of industry belief systems described by Porac, Ventresca, & Mishina (2002). The study traces the historical evolution of this elite group, finding evidence to confirm the status of the Magic Circle categorization as both an institution, and as part of a cognitive belief system about the structure of the UK legal market. In particular, the study presents evidence to suggest that the business and professional media are important

Emerging (or "inchoate") industries differ significantly from mature industries. Inchoate industries are characterized by few producers, underdeveloped markets, unclear technologies, and uncertain regulatory forces. Traditional, linear-adaptive approaches to business strategy derived from the study of mature industries, such as Miles and Snow (1978) and Porter (1980), are not applicable to inchoate industries. In this paper, we argue that an interpretive approach to studying organizing and strategy-making -- specifically Daft and Weick's model of organizations as interpretive systems (1984) -- is better suited to the context of industry emergence. Daft and Weick's typology of interpretive stances distinguishes the manner in which managers attempt to make sense of equivocal and uncertain environments, and hence is independent of an industry's maturity level. This study is the first attempt to operationalize the Daft and Weick typology. Propositions and preliminary evidence pres...