Author(s): Kimin Kim
Dynamic environmental changes contribute not only to an industry’s evolution but also to the restructuring of its alliance network. This study presents a holistic understanding of coevolution of industries and their networks by conceptualizing interactive evolutionary patterns. By cross-examining industry life cycle theory and network topology, this study seeks to explore the relationship between evolutionary patterns of industry and those of the strategic alliance network embedded within it. We propose that as an industry evolves over time following the sequential life cycle of introduction – growth and maturity – decline stages; its strategic alliance network evolves following the sequential development of random – small-world – scale-free networks. We also suggest operational measures to identify the network topology and a research agenda for further development.