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Social Structure and This study explores how social structure affects interfirm
Alliance Formation alliance formation patterns, ft proposes that the social
Patterns: A context emerging from prior alliances and considerations
of strategic interdependence influence partnership
Longitudinal Analysis decisions between firms. This social network facilitates
new alliances by providing valuable information to firms
Ranjay Gulati about the specific capabilities and reliability of potential
Northwestern University partners. The role of both direct ties between firms and
their overall networks were examined with
comprehensive longitudinal multi-industry data on the
formation of interfirm strategic alliances between 1970
and 1989. Results are consistent with both strategic
interdependence and social structural explanations of
alliance formation. Support for the interaction of the two
sets of factors also emerged. The implications of
incorporating both sets of explanations for the formation
of interorganizationa! ties are discussed.*
The last 15 years have witnessed an unprecedented growt h
worldwide in the number of interfirm strategic
alliances—voluntary arrangements involving durable
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