The temporal dynamics of professional networks on law firm performance

This paper investigates the temporal context of social networks on the 'life chances' of organizations. We examine a longitudinal dataset of the network structure of past and present employment ties among all partners in Nashville law firms from 1933 to 1978. Our basic proposition is that a law firm that has a central position in the professional network among partners (i.e., having partners whose prior law firm affiliations create "bridges" or linkages between otherwise disconnected firms) will be better positioned to discover, access, and exploit lucrative opportunities than more peripheral law firms. We thus make the general prediction that a law firm's network centrality (based on the unique or "non-redundant" bridges of its partners) will increase its growth rate. We also examine the temporal context within which the bridges of a law firm's partners develop and distinguish between a firm's "current" network centrality (based on the bridges created in the last year), its "past" network centrality (based on bridges that were created at any point prior to the last year), and its "imprinted" network centrality (based on bridges that were created during the formative stage in the career of a focal law firm's partners). We theorize and find support for the predictions that network centrality increases law firm's growth rates and that the temporal and ecological context within which professional networks develop have a persisting effect on firm performance