Presence of Location-Based Agglomeration Effects in Open Source Communities: An Empirical Test on GitHub

Thummadi, B. Veeresh; Paruchuri, Srikanth

doi:10.5465/amd.2019.0255

Cited by 2 publications

(5 citation statements)

References 51 publications

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“…Within the literature on agglomeration economies, several studies have noted the hazards of knowledge diffusion, rather than the benefits, created by geographical clustering of firms (e.g. Devarakonda et al , 2018; McCann and Vroom, 2010; Ryu et al , 2018; Shaver and Flyer, 2000; Thummadi and Paruchuri, 2022). Ryu et al (2018) have further addressed the issue in the context of strategic alliances, focusing on the agglomeration of alliance partners and rivals.…”

Section: Discussionmentioning

confidence: 99%

“…When an alliance features high reciprocal interdependence, partnering firms have a bidirectional, sophisticated inputoutput relationship where they work on R&D projects jointly and their inputs toward the outputs of cooperation are intertwined (Reuer and Devarakonda, 2016;Ryu et al, 2018;Thompson, 1967). In this situation, allying firms collaborate more intimately and show intensive knowledge sharing.…”

Section: Moderation Of Reciprocal Interdependencementioning

confidence: 99%

“…Recently, one line of research has extended the agglomeration theory to new fields. For example, Thummadi and Paruchuri (2022) explore software development in digital communities and examine whether project initiations would clump in regions where more projects have already been initiated.…”

Section: Literature and Hypothesesmentioning

confidence: 99%

“…A common thread through all of the above research streams is the interest in identifying the agglomeration benefits that accrue to clustered firms; this gives rise to another line of research that focuses on the potential threats and/or disadvantages of agglomeration (e.g. Devarakonda et al , 2018; Greve, 2000; McCann and Vroom, 2010; Richardson, 1995; Ryu et al , 2018; Shaver and Flyer, 2000; Thummadi and Paruchuri, 2022). For instance, Greve (2000) examines negative competition effects in the clustering of Tokyo banks, and McCann and Vroom (2010) discover diminishing positive agglomeration effects in Texas hotels.…”

Section: Literature and Hypothesesmentioning

confidence: 99%

“…For instance, Greve (2000) examines negative competition effects in the clustering of Tokyo banks, and McCann and Vroom (2010) discover diminishing positive agglomeration effects in Texas hotels. The phenomenon of “diseconomies of agglomeration” has been further expounded by Richardson (1995) as well as Thummadi and Paruchuri (2022). Spotlighting knowledge dissemination hazards in the US biopharmaceutical industry, Devarakonda et al (2018) and Ryu et al (2018) underline that spatial concentration of firms poses risks to knowledge owners.…”

Section: Literature and Hypothesesmentioning

confidence: 99%

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When friends are near foes: governing nonequity alliances with steering committees

Tseng,

Lien

2024

JBIM

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Purpose Indirect knowledge leakage to rivals located near alliance partners represents a significant risk that has received limited scholarly attention. Hence, the question of how to manage this risk – which the authors term “partner-rival co-location risk” – in nonequity alliances remains unanswered, and this study aims to suggest establishing a steering committee to oversee the partnership. Design/methodology/approach Drawing on the agglomeration economies and alliance governance literatures, the authors develop a set of hypotheses and perform a series of empirical tests on 470 nonequity alliances in the US biopharmaceutical industry. Findings The authors propose that there is a positive linkage between partner-rival co-location risk and the formation of a steering committee in a nonequity alliance, which receives strong empirical support. Further, this relationship is significantly moderated by the breadth (alliance scope) but not the depth (reciprocal interdependence) of interaction between the partnering firms. Originality/value This paper is a pioneer to shed light on “partner-rival co-location risk” and how partner-rival co-location risk affects the governance decision of whether to establish a steering committee in a nonequity alliance, thus offering important theoretical and practical insights into competition and cooperation in alliance management.

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