Strategic Alliance Networks in the Global Information Sector

David Knoke Department of Sociology University of Minnesota

Social Networks and Cyberinfrastructure Workshop University of Illinois, November 3-5, 2005

Global Information Sector

Basic network concepts can help to explain the evolution of the strategic alliance network in the Global Information Sector (GIS). This sector increased collaborative agreements exponentially 1989-2000, creating a complex web of overlapping partnerships. 

Five NAICS info subsectors (publishing; motion pictures & sound recording; broadcasting & telecomms; info services & data processing) plus computer, telecomm, semiconductor manufacturing industries



145 multinational corporations: 66% USA, 16% Europe, 15% Asia



Alliance & venture announcements in news media from 1989 to 2000



Total of 3,569 alliances involving two or more GIS organizations

Next two figures show mean strategic alliances among 30 most-active firms & MDS distances/clusters on dyads’ # of annual partnerships.

By 2000, Japanese firms were more likely to form new strategic alliances among themselves, but what problems may emerge from their increasingly inward turn?

GIS Core Alliances in the Triad 2 1 0 4 3 6 5 USA Japan Europe Europe-USA USA-Japan Japan-Europe YR91 YR95 YR00

2.0

1.5

1.0

.5

0.0

-.5

-1.0

-1.5

-2.0

FT

-1.5

2000 GIS (MDS stress = 0.137)

BS BT TI ATT AOL ERICSSON MOTOROLA BCE PHILIPS SONY MITSUBISHI MATSUSHITA NTT TOSHIBA HITACHI FUJITSU NEC MICROSOFT IBM HP COMPAQ SUN INTEL CISCO ORACLE SIEMENS SAMSUNG

-1.0

-.5

0.0

.5

1.0

NOVELL

1.5

APPLE

2.0