WHEN TECHNO-INNOVATIVE RELATIONSHIPS BREAK UP WHAT HAPPENS TO THE NETWORK?

The aim of the paper is to explore how relationship ending between business partners contributes to changes in the structure of a technology based network. By studying how network structure is affected by the break-up of dyadic actor bonds, we seek to understand the stability of network positions. The study is empirically based on an organized industrial network, which focuses on market and technological innovation within the Norwegian oil and gas industry. We simulated relationship ending between companies and observed that the "disengaging" parties move towards the periphery of the network. This in turn reduces the stability and sustainability of the whole network. The findings have relevance for how companies manage their relationships, and how organized networks with the purpose of technology innovation are managed.