Inter-Network Co-evolution: Reversing the Fortunes of Declining Industrial Networks

This article takes a dynamic perspective on network change, following the multi-stage pattern of the expansion, churning, strengthening and shrinking evolutionary stages suggested in previous literature, but adding a co-evolutionary rejuvenation stage. Based on a longitudinal case study of the interactions between Taiwanese machinery and flat panel display networks, this study focuses on changes triggered by technological and institutional interactions as the major mechanisms responsible for dynamic network co-evolution between multiple networks. The article finds that internetwork interactions can provide benefits that can strengthen an expanding network, and also aid the rejuvenation of a declining industrial network, as well as providing insights into how companies can shape industry networks to their own advantage.