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Information Strategies , Information Regimes , and the Topology of Interfirm Networks

We introduce a model of the dependence of the topology of interfirm networks on the distribution and commonality of information in a network and the information strategies pursued by its members firms. We examine the dynamic interactions between knowledge commonality and distribution on one hand, and network topology on the other hand. We derive predictions about the kinds of information strategies that are likely to arise and succeed in different information regimes, about the kinds and short-run dynamics of network structures that we might expect to see under different information regimes. Our model sheds new light on network structures as a dependent variable that can be explained by network-level information regimes and firm-level information strategies.