Accounting for Heterogeneity in Network Formation Behaviour: An Application to Vietnamese SMEs

Tadao Hoshino, Daichi Shimamoto, Yasuyuki Todo

Research output: Contribution to journalArticlepeer-review

Abstract

Network formation is often characterized by homophily, i.e. the tendency of agents to connect with others who have similar attributes. However, while most agents are homophilous, others could be heterophilous; they aim to create ties with dissimilar agents. This study provides empirical evidence supporting this hypothesis by applying a random coefficient approach to data on the information-sharing networks of small- and medium-sized Vietnamese enterprises. In particular, we find that firms tend to form heterophilous links with respect to business type and gender ratio. One possible reason for the heterophily is that firms can obtain useful and performance-improving information from such dissimilar partners.

Original languageEnglish
Pages (from-to)1042-1067
Number of pages26
JournalOxford Bulletin of Economics and Statistics
Volume82
Issue number5
DOIs
Publication statusPublished - 2020 Oct 1

ASJC Scopus subject areas

  • Statistics and Probability
  • Social Sciences (miscellaneous)
  • Economics and Econometrics
  • Statistics, Probability and Uncertainty

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