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A Web of Alliances in the Global Telecommunication Industry
Unformatted Document Text:  Global Telecommunication 13 Business Yearbook by Euromoney Publications (2000), firms’ annual reports and 10-K financial reports. ______________________ TABLE 1 ABOUT HERE ______________________ Constructing the Networks This paper is based on strong ties such as equity alliances and joint ventures that “have a higher level of resource commitment” (Rowley et al., 2000, p.377). The basic network data set for the telecommunication industry is an n x n matrix S, where n equals the number of nodes (firms) in the analysis. In this case, a node is a firm. Each cell, Sij , indicates the strength of the relationship. S is symmetrical because the purpose of this paper is to identify the relational structure of media firms. If there was a joint venture or equity investment in the dyad, it is coded as 1, 0 it is coded if no joint venture or equity investment existed. This network indicates the existence of alliances between two global telecommunication firms. The industry networks are constructed by constructing the 25 by 25 matrix. Network Analysis Centrality Analysis. Centrality is a structural attribute of nodes in a network. Thus, a centrality analysis identifies “a central point with a great many direct contacts with other points” (Scott, 1991, p.86). Although centrality may be measured in a variety ways, this study used Bonacich centrality measure for analyzing the structure of global media networks. Bonacich centrality calculates the principal eigenvector of the valued adjacency matrix of a network

Authors: Chon, Bum Soo. and Barnett, George.
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Global Telecommunication 13
Business Yearbook by Euromoney Publications (2000), firms’ annual reports and 10-K financial
reports.
______________________
TABLE 1 ABOUT HERE
______________________
Constructing the Networks
This paper is based on strong ties such as equity alliances and joint ventures that “have a
higher level of resource commitment” (Rowley et al., 2000, p.377). The basic network data set
for the telecommunication industry is an n x n matrix S, where n equals the number of nodes
(firms) in the analysis. In this case, a node is a firm. Each cell,
Sij
, indicates the strength of the
relationship. S is symmetrical because the purpose of this paper is to identify the relational
structure of media firms. If there was a joint venture or equity investment in the dyad, it is coded
as 1, 0 it is coded if no joint venture or equity investment existed. This network indicates the
existence of alliances between two global telecommunication firms. The industry networks are
constructed by constructing the 25 by 25 matrix.
Network Analysis
Centrality Analysis. Centrality is a structural attribute of nodes in a network. Thus, a
centrality analysis identifies “a central point with a great many direct contacts with other points”
(Scott, 1991, p.86). Although centrality may be measured in a variety ways, this study used
Bonacich centrality measure for analyzing the structure of global media networks. Bonacich
centrality calculates the principal eigenvector of the valued adjacency matrix of a network


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