Abstract
Despite decades of network research, the crucial question, “How do networks evolve?” has not been sufficiently explored. We explore this question by analyzing the co-authorship networks in the U.S. biotechnology firms. Specifically, from network management and network inertia perspectives, we argue that structural changes in the firms’ co-authorship networks are dependent on the specific characteristics of firms’ initial networks. Longitudinal analysis of the U.S. biotechnology firms over a span of seventeen years largely supports our arguments. Overall, we find that firms’ existing tie-specific characteristics in the form of a firm’s existing network size, tie strength, and the knowledge quality carried through these ties constitute significant determinants of network evolution.