Organizational status growth and structure: An alliance network analysis

Considering the status system emerging from a structure of corporate affiliations, we examine how alliance patterns among firms affect their changing organizational statuses and the structural development of the status system itself. Firm status is conceptually grounded in sociological theories of status and network analysis. The empirical setting we investigate is the network of alliances among firms in the Global Information Sector. The results indicate a negative effect of initial firm status on the growth rate of individual status, which is associated with the different patterns of alliance affiliations among firms with different status levels. Affiliation patterns also affect the extent of variation in the gap between status strata and firm mobility along the status hierarchy. The results highlight the importance of understanding the structural aspects underlying firm status attainment.

► We analyze the status system emerging from a network of corporate alliances.
► Initial firm status level has a negative effect on firm status growth.
► Alliance patterns based on firms’ status levels affect firm status growth.
► Alliance patterns affect strata gap change and firm mobility in status hierarchy.
► Firm status attainment depends on prevalent affiliation patterns in an industry.