Does Performance Homophily Matter in Acquisition Decisions? Evidence From Acquisition Network in the Global Electricity Industry

In this paper I use data, that I have collected on corporate acquisition transactions among electricity companies worldwide during the period 1994-2004, to test the hypothesis of organizational performance homophily as an acquisition network-selection mechanism for firms in the electricity industry. I report clear evidence that performance considerations are taken into account by international electricity firms while choosing their network partners. The methodology used in this study is based on the stochastic actor- oriented models for social network analysis