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A Web of Alliances in the Global Telecommunication Industry
Unformatted Document Text:  Global Telecommunication 8 In this paper, interorganizational alliances refers to which different organizations in three media industries are directly or indirectly linked through three ways of networking such as joint ventures, equity partnerships and shared memberships. Likewise, this study limited the scope of interorganizational alliances as the equity network (joint venture + equity partnership) for the telecommunication industry. It may explore relatively stable ties among media firms because those organizations may be strongly embedded in the equity network. From the theoretical perspective, both equity-based alliances may be a type of relational embeddedness (Granovetter, 1973). Simply, this refers to strong tie linkage. The theory of relational embeddedness is based on the degree of cohesion among actors. As Gulati (1998) maintains, “relational embeddedness or cohesion perspectives on networks stress the role of direct cohesive ties as a mechanism for gaining fine-grained information” (p.296). In relation with access to information, “strong ties are associated with trust and fine-grained information exchanges between partners. On the other hand, weak ties lead to novel information” (Rowley, Behrens & Krackhardt, 2000, pp.369-370). The interorganizational equity network is a strong linkage based on direct interaction between two firms. It is “broader and deeper in terms of investment and interaction than marketing joint ventures and technology licensing, which requires less coordination or understanding of partner’s organizations” (Powell, 1990, p.314). In addition, as Rowley, Behrens and Krackhardt (2000) argue, strong ties had several advantages for participating organizations in that “first, strong ties are associated with the exchange of high quality information and tacit knowledge. Second, they serve as part of the social control mechanism, which governs partnership behaviors” (p.371).

Authors: Chon, Bum Soo. and Barnett, George.
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Global Telecommunication 8
In this paper, interorganizational alliances refers to which different organizations in three
media industries are directly or indirectly linked through three ways of networking such as joint
ventures, equity partnerships and shared memberships. Likewise, this study limited the scope of
interorganizational alliances as the equity network (joint venture + equity partnership) for the
telecommunication industry. It may explore relatively stable ties among media firms because
those organizations may be strongly embedded in the equity network. From the theoretical
perspective, both equity-based alliances may be a type of relational embeddedness (Granovetter,
1973). Simply, this refers to strong tie linkage. The theory of relational embeddedness is based on
the degree of cohesion among actors. As Gulati (1998) maintains, “relational embeddedness or
cohesion perspectives on networks stress the role of direct cohesive ties as a mechanism for
gaining fine-grained information” (p.296). In relation with access to information, “strong ties are
associated with trust and fine-grained information exchanges between partners. On the other hand,
weak ties lead to novel information” (Rowley, Behrens & Krackhardt, 2000, pp.369-370).
The interorganizational equity network is a strong linkage based on direct interaction
between two firms. It is “broader and deeper in terms of investment and interaction than
marketing joint ventures and technology licensing, which requires less coordination or
understanding of partner’s organizations” (Powell, 1990, p.314). In addition, as Rowley, Behrens
and Krackhardt (2000) argue, strong ties had several advantages for participating organizations in
that “first, strong ties are associated with the exchange of high quality information and tacit
knowledge. Second, they serve as part of the social control mechanism, which governs
partnership behaviors” (p.371).


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