Resource title

Effectiveness by what measure? Incentives, institutions and strategic networks in China

Resource image

image for OpenScout resource :: Effectiveness by what measure? Incentives, institutions and strategic networks in China

Resource description

The authors investigate the interplay between an individual decision-maker's incentive structure and characteristics of the institutional environment as drivers of inter-organizational network evolution. They use longitudinal data on new product development projects in the pharmaceutical industry in China between 1986 and 1994 to study the impact of key reforms on the size, scope and structural patterns of interactions among research organizations and manufacturers. In contrast to findings in developed market economies, network-level results in this context show clear year-on-year increases in all measures of network scale and scope, but the emergence of a distributed network structure. At the organization level, they find considerable homogeneity among actors' network behaviors in terms of scale and scope, as well as consistency over time. They interpret these patterns in light of the changing institutional environment and incentive structure facing the top managers of these organizations. Furthermore, the authors evaluate the effectiveness of their network strategies in terms of the rationality of their choices given the specific incentive structure-the complex of motivations and constraints-facing them.

Resource author

Resource publisher

Resource publish date

Resource language

en

Resource content type

application/pdf

Resource resource URL

http://flora.insead.edu/fichiersti_wp/inseadwp2003/2003-59.pdf

Resource license

Copyright INSEAD. All rights reserved