Boolean Network and Simmelian Tie in the Co-Author Model: a Study of Dynamics and Structure of a Strategic Alliance Model

This article explains a simulation of the Co-Author Model (CAM) applied in strategic alliance setting where firms use and optimize their network resources. To understand its process casualty better, I explain the model's mechanisms in terms of its interactive dynamics and resulting equilibrium structure. Classified as a Boolean network with two inputs, CAM's dynamics cause a biased equilibrium structure that could then be explained by the Simmelian tie and the completion of structure through structural balance. These explanations not only could answer the criticism that a simulation model is merely a toy model without much realism but could also explain and give insights to both substantive theory and methodology development in strategic alliance research. The results include the effect of a third party, the embeddedness of firms in their alliances, and the real-world implications of the "frozen web": a phenomenon drawn parallel to the financial crisis beginning in 2007.

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