W hat types of human and social capital identify the emergence of leaders of open innovation communities? Consistent with the norms of an engineering culture, we find that future leaders must first make strong technical contributions. Beyond technical contributions, they must then integrate their communities in order to mobilize volunteers and avoid the ever-present danger of forking and balkanization. This is enabled by two correlated but distinct social positions: social brokerage and boundary spanning between technological areas. An inherent lack of trust associated with brokerage positions can be overcome through physical interaction. Boundary spanners do not suffer this handicap and are much more likely than brokers to advance to leadership. The research separates the influence of human and social capital on promotion, and highlights previously unexamined differences between brokerage-and boundary-spanning positions. Longitudinal analyses of careers within the Internet Engineering Task Force community from 1986-2002 support the arguments.

This study uses data on the U.S. film industry from 1982 to 2001 to analyze the effects on box office performance of prior relationships between film producers and distributors. In contrast to prior studies, which have appeared to find performance benefits to both buyers and sellers when exchange occurs embedded within existing social relations, we propose that the apparent mutual advantages of embedded exchange can also emerge from endogenous behavior that benefits one party at the expense of the other: actors offer better terms of trade and allocate more resources to transactions embedded within existing social relations, thereby contributing to the ostensible advantages of such exchange patterns. Findings show that not only do distributors exhibit a preference for carrying films involving key personnel with whom they had prior exchange relations, but also they tend to favor these films when allocating scarce resources (opening dates and promotion effort). After controlling for the effects of these decisions, films with deeper prior relations to the distributor perform worse at the box office. The results suggest that, rather than benefiting from repeated exchange, distributors overallocate scarce resources to these prior exchange partners, enacting a self-confirming dynamic.

Categorization processes are generally treated as consistent mappings of the underlying characteristics that they group. Yet, in many cases, the identities of actors influence these processes. When identity matters, high-status actors often obtain more favorable classifications. We examine these processes in the context of the Motion Picture Association of America's parental guidance classifications of movies (G, PG, R, NC-17). We find that, conditional on a given level of content, films distributed by the Association's members and those that involve more central producers and directors receive more lenient classifications than those carried by independent distributors and involving more peripheral personnel. Conversely, and again conditional on content, films involving directors with a history of producing R-rated features receive more restrictive ratings. We discuss the mechanisms that might account for these effects. Regardless of the mechanism, however, because ratings influence revenue and consequently profitability, the movie certification system in the United States places independent distributors and peripheral individuals at a disadvantage, relative to their larger and more central rivals.

This paper contributes large-sample evidence to an emerging discussion on open innovation and firm strategy. We ask why a startup should participate in an open standards community. We propose four ways that participation might increase a startup's chances of a liquidity event: gaining endorsement of the startup's technology standard, openly developing the startup's technology within the community (but not necessarily gaining endorsement), simply attending physical meetings of the community, and having startup members elected to leadership positions. Examination of venture-funded startups in the networking/data communications industry sectors reveals that those startups that participate in an open standards community (the Internet Engineering Task Force (IETF)) have a greater likelihood of an initial public offering or acquisition. The strongest effects are due to attendance, and conditional on high levels of attendance, holding leadership positions within the IETF. Surprisingly, standards endorsement is insignificant when controlling for simple physical attendance. These results are robust to instrumental variable methods and alternative coding of variables. In two-stage models we also find that prominent venture capitalists might help their portfolio companies by steering them to effective technology strategies, in this case active participation in the IETF, and not simply by lending status.open innovation, standards, entrepreneurship

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