A stochastic actor-based modelling of the evolution of an intercity corporate network

Abstract

We adopt a stochastic actor-based modelling framework to present a longitudinal analysis of an intercity corporate network formed by 53 globalised advanced producer service firms across 107 cities for three different time points in the period 2000-10. Our longitudinal framework allows us to investigate the different processes underlying firm networks' dynamics. The observed network changes are explained by a combination of exogenous city characteristics (eg, GDP and population) and endogenous local network structures (eg, 'star' and '4-cycle' structures). Our analysis contributes to an understanding of how interactions amongst cities and firms at the local scale give rise to the empirically observed network patterns at the global scale. © 2013 Pion and its Licensors.