The web of relationships between companies is essential for markets, as they convey information, resources and knowledge within a social structure. The embeddedness of firms in these relational structures partly arises from pure business interest and partly from other types of social connections, such as the personal acquaintance of owners or the geographical proximity of companies. However, studying the interplay between such relationships is rare at large-scale, because of their significant data demand.
In this project, we search for the determinants of business tie creation and tie persistence. We combine administrative datasets on firms to uncover the evolution of inter-firm business connections in Hungary between 2016 and 2018. We connect firms through their co-ownership ties, and business transactions. This allows us to show how direct and indirect connections in this multiplex network influence the creation and persistence of business transactions together with geographical proximity.