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Worlds Apart ‐ Network Emergence Under Institutional Frameworks Of Nepotism And MeritocracyAndersen, Kristina V.; Lorenzen, MarkNetwork DynamicsNetwork Dynamics, Trust, Centrality, Industrial Clusters, Collaboration NetworkWED.PM2This paper investigates the under exposed relationship between institutional environment and network emergence (see Powell 1996, Owen‐Smith & Powell2004 for examples on this neglected stream of research). We raise the questions of whether and how institutions not merely influence emerging networkstructure, but also mediate the relationship between network structure and performance. In the process, we discuss the historical and cultural contingenciesthat create these institutions of network growth, and hence make network structures and the economic functioning of networks different from place to place.The analysis is based on collaboration networks from the film industries of Hollywood and Bollywood. The predominantly meritocratic institutionalenvironment of Hollywood leaves each individual to fend for him/her self based on abilities, connections and luck. Contrary to this, the institutionalenvironment of Bollywood is dominated by nepotism in the form of altruism among kin (Dawkins 1976), where kin has both genetic and social components.Comparison of these two industry networks facilitates analyses of effects of network centrality, status, and previous collaborations under different institutionalframeworks. Our findings indicate that the nepotism dominating Bollywood increases the value of repeated interaction which leads to a tight knit networkstructure. This coincides with a stronger association between high status and centrality. Based on these findings we conclude that network emergence underan institutional environment dominated by nepotism leads to a tight knit, clique based network structure which restrains possibilities for sourcing knowledgeand talent from all parts of the network.