[go: up one dir, main page]
More Web Proxy on the site http://driver.im/
IDEAS home Printed from https://ideas.repec.org/p/eti/dpaper/17023.html
   My bibliography  Save this paper

Accounting for Heterogeneity in Network Formation Behavior: An application to Vietnamese SMEs

Author

Listed:
  • HOSHINO Tadao
  • SHIMAMOTO Daichi
  • TODO Yasuyuki
Abstract
Network formation is often characterized by homophily—the tendency that agents connect with others who have similar attributes. However, while most agents are homophilous, others may be heterophilous, namely, aiming to create ties with dissimilar agents. This study finds evidence supporting this hypothesis for the first time in the literature by applying random coefficient models to information-sharing network data for Vietnamese small and medium-sized enterprises (SMEs). One possible interpretation for this heterophily is that firms can obtain more useful and performance-improving information from those dissimilar—as opposed to similar—to themselves, as suggested by certain social network studies.

Suggested Citation

  • HOSHINO Tadao & SHIMAMOTO Daichi & TODO Yasuyuki, 2017. "Accounting for Heterogeneity in Network Formation Behavior: An application to Vietnamese SMEs," Discussion papers 17023, Research Institute of Economy, Trade and Industry (RIETI).
    • Handle: RePEc:eti:dpaper:17023
    as

    Download full text from publisher

    File URL: https://www.rieti.go.jp/jp/publications/dp/17e023.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. John McMillan & Christopher Woodruff, 1999. "Interfirm Relationships and Informal Credit in Vietnam," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 114(4), pages 1285-1320.
    2. Watson, John, 2007. "Modeling the relationship between networking and firm performance," Journal of Business Venturing, Elsevier, vol. 22(6), pages 852-874, November.
    3. Koen Jochmans, 2018. "Semiparametric Analysis of Network Formation," Journal of Business & Economic Statistics, Taylor & Francis Journals, vol. 36(4), pages 705-713, October.
    4. Fox, Jeremy T. & Kim, Kyoo il & Yang, Chenyu, 2016. "A simple nonparametric approach to estimating the distribution of random coefficients in structural models," Journal of Econometrics, Elsevier, vol. 195(2), pages 236-254.
    5. Paul Goldsmith-Pinkham & Guido W. Imbens, 2013. "Social Networks and the Identification of Peer Effects," Journal of Business & Economic Statistics, Taylor & Francis Journals, vol. 31(3), pages 253-264, July.
    6. Marcel Fafchamps & Simon Quinn, 2018. "Networks and Manufacturing Firms in Africa: Results from a Randomized Field Experiment," The World Bank Economic Review, World Bank, vol. 32(3), pages 656-675.
    7. Cowan, Robin & Jonard, Nicolas, 2004. "Network structure and the diffusion of knowledge," Journal of Economic Dynamics and Control, Elsevier, vol. 28(8), pages 1557-1575, June.
    8. Sergio Currarini & Matthew O. Jackson & Paolo Pin, 2009. "An Economic Model of Friendship: Homophily, Minorities, and Segregation," Econometrica, Econometric Society, vol. 77(4), pages 1003-1045, July.
    9. Benedikte Bjerge & Nina Torm & Neda Trifkovic, 2016. "Gender matters: Private sector training in Vietnamese SMEs," WIDER Working Paper Series 149, World Institute for Development Economic Research (UNU-WIDER).
    10. Fafchamps, Marcel & Gubert, Flore, 2007. "The formation of risk sharing networks," Journal of Development Economics, Elsevier, vol. 83(2), pages 326-350, July.
    11. Gilsing, Victor & Nooteboom, Bart & Vanhaverbeke, Wim & Duysters, Geert & van den Oord, Ad, 2008. "Network embeddedness and the exploration of novel technologies: Technological distance, betweenness centrality and density," Research Policy, Elsevier, vol. 37(10), pages 1717-1731, December.
    12. Benjamin Golub & Matthew O. Jackson, 2012. "How Homophily Affects the Speed of Learning and Best-Response Dynamics," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 127(3), pages 1287-1338.
    13. Mark Granovetter, 2005. "The Impact of Social Structure on Economic Outcomes," Journal of Economic Perspectives, American Economic Association, vol. 19(1), pages 33-50, Winter.
    14. Ichimura, Hidehiko & Thompson, T. Scott, 1998. "Maximum likelihood estimation of a binary choice model with random coefficients of unknown distribution," Journal of Econometrics, Elsevier, vol. 86(2), pages 269-295, June.
    15. repec:dau:papers:123456789/4392 is not listed on IDEAS
    16. Bryan S. Graham, 2016. "Homophily and transitivity in dynamic network formation," CeMMAP working papers CWP16/16, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
    17. repec:dau:papers:123456789/10840 is not listed on IDEAS
    18. Jackson, Matthew O. & López-Pintado, Dunia, 2013. "Diffusion and contagion in networks with heterogeneous agents and homophily," Network Science, Cambridge University Press, vol. 1(1), pages 49-67, April.
    19. Jing Cai & Adam Szeidl, 2018. "Interfirm Relationships and Business Performance," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 133(3), pages 1229-1282.
    20. Sinan Aral & Erik Brynjolfsson & Marshall Van Alstyne, 2012. "Information, Technology, and Information Worker Productivity," Information Systems Research, INFORMS, vol. 23(3-part-2), pages 849-867, September.
    21. Train,Kenneth E., 2009. "Discrete Choice Methods with Simulation," Cambridge Books, Cambridge University Press, number 9780521766555, September.
    22. Kets, Willemien & Sandroni, Alvaro, 2019. "A belief-based theory of homophily," Games and Economic Behavior, Elsevier, vol. 115(C), pages 410-435.
    23. Marcel Fafchamps & Flore Gubert, 2007. "Risk Sharing and Network Formation," American Economic Review, American Economic Association, vol. 97(2), pages 75-79, May.
    24. Leung, Michael P., 2015. "Two-step estimation of network-formation models with incomplete information," Journal of Econometrics, Elsevier, vol. 188(1), pages 182-195.
    25. Eric Gautier & Yuichi Kitamura, 2013. "Nonparametric Estimation in Random Coefficients Binary Choice Models," Econometrica, Econometric Society, vol. 81(2), pages 581-607, March.
    26. Mariagiovanna Baccara & Leeat Yariv, 2013. "Homophily in Peer Groups," American Economic Journal: Microeconomics, American Economic Association, vol. 5(3), pages 69-96, August.
    27. Nicholas A. Christakis & James H. Fowler & Guido W. Imbens & Karthik Kalyanaraman, 2010. "An Empirical Model for Strategic Network Formation," NBER Working Papers 16039, National Bureau of Economic Research, Inc.
    28. Gonzalez-Brambila, Claudia N. & Veloso, Francisco M. & Krackhardt, David, 2013. "The impact of network embeddedness on research output," Research Policy, Elsevier, vol. 42(9), pages 1555-1567.
    29. Akbar Zaheer & Geoffrey G. Bell, 2005. "Benefiting from network position: firm capabilities, structural holes, and performance," Strategic Management Journal, Wiley Blackwell, vol. 26(9), pages 809-825, September.
    30. Angelo Mele, 2017. "A Structural Model of Dense Network Formation," Econometrica, Econometric Society, vol. 85, pages 825-850, May.
    31. Jeremy T. Fox & Kyoo il Kim & Stephen P. Ryan & Patrick Bajari, 2011. "A simple estimator for the distribution of random coefficients," Quantitative Economics, Econometric Society, vol. 2(3), pages 381-418, November.
    32. Todo, Yasuyuki & Matous, Petr & Inoue, Hiroyasu, 2016. "The strength of long ties and the weakness of strong ties: Knowledge diffusion through supply chain networks," Research Policy, Elsevier, vol. 45(9), pages 1890-1906.
    33. Honoré,Bo & Pakes,Ariel & Piazzesi,Monika & Samuelson,Larry (ed.), 2017. "Advances in Economics and Econometrics," Cambridge Books, Cambridge University Press, number 9781316510520, January.
    34. Philippe Aghion & Steven Durlauf (ed.), 2005. "Handbook of Economic Growth," Handbook of Economic Growth, Elsevier, edition 1, volume 1, number 1.
    35. Honoré,Bo & Pakes,Ariel & Piazzesi,Monika & Samuelson,Larry (ed.), 2017. "Advances in Economics and Econometrics," Cambridge Books, Cambridge University Press, number 9781108400022, January.
    36. Brian Uzzi & Ryon Lancaster, 2003. "Relational Embeddedness and Learning: The Case of Bank Loan Managers and Their Clients," Management Science, INFORMS, vol. 49(4), pages 383-399, April.
    37. Julie M. Hite & William S. Hesterly, 2001. "The evolution of firm networks: from emergence to early growth of the firm," Strategic Management Journal, Wiley Blackwell, vol. 22(3), pages 275-286, March.
    38. A Stefano Caria & Marcel Fafchamps, 0. "Can People form Links to Efficiently Access Information?," Economic Journal, Royal Economic Society, vol. 130(631), pages 1966-1994.
    39. Honoré,Bo & Pakes,Ariel & Piazzesi,Monika & Samuelson,Larry (ed.), 2017. "Advances in Economics and Econometrics," Cambridge Books, Cambridge University Press, number 9781108400008, January.
    40. Sheen S. Levine & Robert Kurzban, 2006. "Explaining clustering in social networks: towards an evolutionary theory of cascading benefits," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 27(2-3), pages 173-187.
    41. Honoré,Bo & Pakes,Ariel & Piazzesi,Monika & Samuelson,Larry (ed.), 2017. "Advances in Economics and Econometrics," Cambridge Books, Cambridge University Press, number 9781108414982, January.
    42. Bryan S. Graham, 2017. "An Econometric Model of Network Formation With Degree Heterogeneity," Econometrica, Econometric Society, vol. 85, pages 1033-1063, July.
    43. Lee Fleming & Charles King & Adam I. Juda, 2007. "Small Worlds and Regional Innovation," Organization Science, INFORMS, vol. 18(6), pages 938-954, December.
    44. Corey C. Phelps, 2010. "A longitudinal study of the influence of alliance network structure and composition on firm exploratory innovation," Post-Print hal-00528392, HAL.
    45. David Constant & Lee Sproull & Sara Kiesler, 1996. "The Kindness of Strangers: The Usefulness of Electronic Weak Ties for Technical Advice," Organization Science, INFORMS, vol. 7(2), pages 119-135, April.
    46. Benedikte Bjerge & Nina Torm & Neda Trifković, 2016. "Gender matters: Private sector training in Vietnamese SMEs," WIDER Working Paper Series wp-2016-149, World Institute for Development Economic Research (UNU-WIDER).
    47. Matthew O. Jackson & Brian W. Rogers, 2007. "Meeting Strangers and Friends of Friends: How Random Are Social Networks?," American Economic Review, American Economic Association, vol. 97(3), pages 890-915, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Yasuyuki Todo & Keita Oikawa & Masahito Ambashi & Fukunari Kimura & Shujiro Urata, 2021. "Robustness and Resilience of Supply Chains During the COVID-19 Pandemic: Findings from a Questionnaire Survey on the Supply Chain Links of Firms in ASEAN and India," Working Papers DP-2021-40, Economic Research Institute for ASEAN and East Asia (ERIA).
    2. Yasuyuki Todo & Keita Oikawa & Masahito Ambashi & Fukunari Kimura & Shujiro Urata, 2023. "Robustness and resilience of supply chains during the COVID‐19 pandemic," The World Economy, Wiley Blackwell, vol. 46(6), pages 1843-1872, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Gualdani, Cristina, 2021. "An econometric model of network formation with an application to board interlocks between firms," Journal of Econometrics, Elsevier, vol. 224(2), pages 345-370.
    2. Gualdani, Cristina, 2018. "An Econometric Model of Network Formation with an Application to Board Interlocks between Firms," TSE Working Papers 17-898, Toulouse School of Economics (TSE), revised Jul 2019.
    3. Bryan S. Graham, 2019. "Network Data," CeMMAP working papers CWP71/19, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
    4. Áureo de Paula, 2020. "Econometric Models of Network Formation," Annual Review of Economics, Annual Reviews, vol. 12(1), pages 775-799, August.
    5. Bryan S. Graham, 2019. "Network Data," Papers 1912.06346, arXiv.org.
    6. Alex Centeno, 2022. "A Structural Model for Detecting Communities in Networks," Papers 2209.08380, arXiv.org, revised Oct 2022.
    7. Chih-Sheng Hsieh & Stanley I. M. Ko & Jaromír Kovářík & Trevon Logan, 2018. "Non-Randomly Sampled Networks: Biases and Corrections," NBER Working Papers 25270, National Bureau of Economic Research, Inc.
    8. Boucher, Vincent, 2020. "Equilibrium homophily in networks," European Economic Review, Elsevier, vol. 123(C).
    9. Leung, Michael P., 2019. "A weak law for moments of pairwise stable networks," Journal of Econometrics, Elsevier, vol. 210(2), pages 310-326.
    10. Bryan S. Graham, 2017. "An econometric model of network formation with degree heterogeneity," CeMMAP working papers 08/17, Institute for Fiscal Studies.
    11. Liza Charroin, 2018. "Homophily, peer effects and dishonesty," Post-Print halshs-01993618, HAL.
    12. Yoshiyuki ARATA & Philipp MUNDT, 2019. "Topology and Formation of Production Input Interlinkages: Evidence from Japanese microdata," Discussion papers 19027, Research Institute of Economy, Trade and Industry (RIETI).
    13. Zuckerman, David, 2024. "Multidimensional homophily," Journal of Economic Behavior & Organization, Elsevier, vol. 218(C), pages 486-513.
    14. Guido M. Kuersteiner & Ingmar R. Prucha, 2020. "Dynamic Spatial Panel Models: Networks, Common Shocks, and Sequential Exogeneity," Econometrica, Econometric Society, vol. 88(5), pages 2109-2146, September.
    15. Chen, Mingli & Fernández-Val, Iván & Weidner, Martin, 2021. "Nonlinear factor models for network and panel data," Journal of Econometrics, Elsevier, vol. 220(2), pages 296-324.
    16. Gao, Wayne Yuan & Li, Ming & Xu, Sheng, 2023. "Logical differencing in dyadic network formation models with nontransferable utilities," Journal of Econometrics, Elsevier, vol. 235(1), pages 302-324.
    17. Bryan S. Graham, 2017. "An Econometric Model of Network Formation With Degree Heterogeneity," Econometrica, Econometric Society, vol. 85, pages 1033-1063, July.
    18. Lin, Zhongjian & Hu, Yingyao, 2024. "Binary choice with misclassification and social interactions, with an application to peer effects in attitude," Journal of Econometrics, Elsevier, vol. 238(1).
    19. Boucher, Vincent & Dedewanou, F. Antoine & Dufays, Arnaud, 2022. "Peer-induced beliefs regarding college participation," Economics of Education Review, Elsevier, vol. 90(C).
    20. Carayol, Nicolas & Bergé, Laurent & Cassi, Lorenzo & Roux, Pascale, 2019. "Unintended triadic closure in social networks: The strategic formation of research collaborations between French inventors," Journal of Economic Behavior & Organization, Elsevier, vol. 163(C), pages 218-238.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eti:dpaper:17023. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: TANIMOTO, Toko (email available below). General contact details of provider: https://edirc.repec.org/data/rietijp.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.