Dynamics of Unclosed Triangles in Alliance Networks: Disappearance of Brokerage Positions and Performance Consequences1

We depart from previous research on brokerage advantages in interorganizational networks by shifting focus to the dynamics of brokerage positions. We investigate causes of the disappearance of these positions and its influence on organizational performance. Using a subnetwork consisting of a broker and its two partners as the unit of analysis, we postulate that the brokerage position disappears either when the two partners develop ties or when the ties between the broker and the partners dissolve. We predict that the patterns of interactions in which this subnetwork is embedded exert multilevel influences on the disappearance, and that embedded structures promoting persistence constrain brokerage advantages. Our analysis of codeshare alliance data in the global airline industry supports the theory and demonstrates that the persistence of brokerage positions decreases broker performance. The findings explain why brokerage positions rarely persist and why the persistence of brokerage positions does not benefit brokers