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Cited by 70Business Strategy and InnovationInnovation and Knowledge ManagementInternational Business and FDI

The Role of Ego Networks in Manufacturing Joint Venture Formations

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Carnovale, Steven, Yeniyurt, Sengun·2014·Journal of Supply Chain Management
DOI 10.1111/jscm.12015
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Abstract

This article develops a network theory–based framework of manufacturing joint venture formations and provides an empirical test in the context of the automotive industry. Hypotheses are developed regarding the implications of the network structure for a firm's partner selection in manufacturing joint ventures. The roles of network theory constructs such as ego network size, ego network density, and ego network betweenness centrality on new manufacturing joint venture formations are explored using a dynamic framework. A comprehensive time series panel dataset with 3,247,124 observations containing the joint venture information of 1,158 automotive firms collectively engaging in 589 manufacturing joint ventures over 19 years is utilized to test the hypotheses. Results provide strong empirical support for the role of network structure in equity‐based partnership formation. Specifically, ego network size and ego network betweenness centrality of both the focal manufacturer and potential partner have significant effects on new manufacturing joint venture formations. Findings regarding the role of ego network density are mixed.

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  • High network density is not necessarily favorable to new JV formation due to lock-in effects through structural homophily.

    “However, the study found mixed outcomes in relation to network density.High network density is not necessarily favorable to new JV formation due to ''lock-in'' effects through structural homophily.”

    From Global value chains: A review of the multi-disciplinary literature (2020) · cites this paper as Carnovale and Yeniyurt, 2014

  • Manufacturing JV formation between lead firms and potential partners can be enhanced by higher network centrality of either the lead firm or the potential JV partner.

    “In supply chain management, Carnovale and Yeniyurt's (2014) study of automotive OEMs and automotive parts suppliers shows that manufacturing JV formation between lead firms and potential partners can be enhanced by higher network centrality of either the lead firm or the potential JV partner.”

    From Global value chains: A review of the multi-disciplinary literature (2020) · cites this paper as Carnovale and Yeniyurt, 2014

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Authors
Carnovale, S., & Yeniyurt, S.
Affiliations
Rutgers, The State University of New Jersey (US)
ORCID
Carnovale, Steven
Venue
Journal of Supply Chain Management
Publisher
Wiley
Published
2014-03-28
Volume
50
Issue
2
Pages
1-17
ISSN
  • 1055-6001 (ISSN-L)
  • 1523-2409
  • 1745-493X
DOI
10.1111/jscm.12015
OpenAlex
W2171375251
Cited by
70
References
86
Citations by year
2026: 3 · 2025: 7 · 2024: 6 · 2023: 3 · 2022: 8 · 2021: 3 · 2020: 6 · 2019: 10 · 2018: 11 · 2017: 2 · 2016: 5 · 2015: 4 · 2014: 2
FWCI
10.87
Type
journal article
Language
en
Open access
Licence
onlinelibrary.wiley.com/termsAndConditions#vor (vor)
Locations
  • Journal of Supply Chain Management (publishedVersion)
  • SSRN Electronic Journal (submittedVersion)
Topics
  • Social Sciences › Business, Management and Accounting › Strategy and Management › Business Strategy and Innovation
  • Social Sciences › Business, Management and Accounting › Strategy and Management › Innovation and Knowledge Management
  • Social Sciences › Business, Management and Accounting › Strategy and Management › International Business and FDI
Keywords
personal networks, mate choice, automotive industry, network structure, betweenness centrality, network density, interfirm collaboration, joint venture formation

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