The Network Evolution of the Internationalizing Firm

This paper analyses the network evolution of the internationalizing firm, focusing on a generative mechanism called preferential attachment. Preferential attachment means that more connected actors are likely to form more relationships. This paper uses longitudinal quantitative data of a single case...

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Main Authors: Sérgio Fernando Loureiro Rezende, Alysson Moreira Alves, Dirley dos Reis Moreira Bicalho, Ângela França Versiani
Format: Article
Language:English
Published: FUCAPE Business School 2022-01-01
Series:BBR: Brazilian Business Review
Subjects:
Online Access:http://www.redalyc.org/articulo.oa?id=123070309001
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author Sérgio Fernando Loureiro Rezende
Alysson Moreira Alves
Dirley dos Reis Moreira Bicalho
Ângela França Versiani
author_facet Sérgio Fernando Loureiro Rezende
Alysson Moreira Alves
Dirley dos Reis Moreira Bicalho
Ângela França Versiani
author_sort Sérgio Fernando Loureiro Rezende
collection DOAJ
description This paper analyses the network evolution of the internationalizing firm, focusing on a generative mechanism called preferential attachment. Preferential attachment means that more connected actors are likely to form more relationships. This paper uses longitudinal quantitative data of a single case of the internationalization of an American multinational firm’s operational division in the Brazilian market. The data analysis is based on Clauset et al.’s (2009) computational algorithm and PAFit, a new statistical method. The aim is to identify the extent to which the network evolution follows a power-law distribution and the degree to which preferential attachment affects the network evolution. It finds that the network evolution of the internationalizing firm follows a power-law distribution. It is affected by a sub-linear form of preferential attachment. Few actors accumulate a disproportionally high number of relationships. The preferential attachment does not homogeneously manifest itself in the network evolution. It has a strong effect on the network onset. This paper contributes by advancing a relational, process-based approach to the internationalization of the firm. It shows that the network evolution of the internationalizing firm grows over time and becomes sparser. More connected actors form hubs, meaning increased status, more power and resources.
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institution Kabale University
issn 1807-734X
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series BBR: Brazilian Business Review
spelling doaj-art-4b168d09421f40e086ac2b2044de8a0d2025-02-06T23:39:33ZengFUCAPE Business SchoolBBR: Brazilian Business Review1807-734X2022-01-0119211613210.15728/bbr.2021.19.2.1The Network Evolution of the Internationalizing FirmSérgio Fernando Loureiro RezendeAlysson Moreira AlvesDirley dos Reis Moreira BicalhoÂngela França VersianiThis paper analyses the network evolution of the internationalizing firm, focusing on a generative mechanism called preferential attachment. Preferential attachment means that more connected actors are likely to form more relationships. This paper uses longitudinal quantitative data of a single case of the internationalization of an American multinational firm’s operational division in the Brazilian market. The data analysis is based on Clauset et al.’s (2009) computational algorithm and PAFit, a new statistical method. The aim is to identify the extent to which the network evolution follows a power-law distribution and the degree to which preferential attachment affects the network evolution. It finds that the network evolution of the internationalizing firm follows a power-law distribution. It is affected by a sub-linear form of preferential attachment. Few actors accumulate a disproportionally high number of relationships. The preferential attachment does not homogeneously manifest itself in the network evolution. It has a strong effect on the network onset. This paper contributes by advancing a relational, process-based approach to the internationalization of the firm. It shows that the network evolution of the internationalizing firm grows over time and becomes sparser. More connected actors form hubs, meaning increased status, more power and resources.http://www.redalyc.org/articulo.oa?id=123070309001internationalizationnetwork evolutionpowerlaw distributionpreferential attachment
spellingShingle Sérgio Fernando Loureiro Rezende
Alysson Moreira Alves
Dirley dos Reis Moreira Bicalho
Ângela França Versiani
The Network Evolution of the Internationalizing Firm
BBR: Brazilian Business Review
internationalization
network evolution
power
law distribution
preferential attachment
title The Network Evolution of the Internationalizing Firm
title_full The Network Evolution of the Internationalizing Firm
title_fullStr The Network Evolution of the Internationalizing Firm
title_full_unstemmed The Network Evolution of the Internationalizing Firm
title_short The Network Evolution of the Internationalizing Firm
title_sort network evolution of the internationalizing firm
topic internationalization
network evolution
power
law distribution
preferential attachment
url http://www.redalyc.org/articulo.oa?id=123070309001
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