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

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. <br> <b>Keywords:</b> stochastic-actor based models, two-mode networks, intercity corporate network, network evolution, advanced producer service