Domino Effects in International Networks

The two basic characteristics of the industrial network approach are firstly, that actors and individual relationships between actors are embedded in a network context and secondly, that important driving forces for change are endogenous. In this paper we consider these two basic characteristics, as we develop the “domino effects” concept to describe and analyze how changes in one relationship explain sequential, consecutive changes in other relationships. Domino effects are more likely to develop where a higher degree of integration and complexity in the network exist. The effects are transferred via indirect relationships. The need to defend existing markets and the importance of getting the timing right when seeking new representatives are both factors which add impetus to structural changes in the industry.