The complexity of the business network context and its effect on subsidiary relational (over-) embeddedness

Nell, Phillip Christopher; Andersson, Ulf

doi:10.1016/j.ibusrev.2011.12.002

Cited by 61 publications

(45 citation statements)

References 56 publications

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“…First, in this article, we have developed theoretically grounded predictions regarding the effects of changes in the interactions between internal and external network embeddedness on a subsidiary's R&D roles. However, we do not fully explore the optimal balance between the development of external and internal embeddedness, nor do we examine the consequences of over-embeddedness (Nell & Andersson, 2012) or of network redundancy (Nell, Ambos, & Schlegelmilch, 2011). Future research needs to analyse in greater depth the specific nuances of dual embeddedness.…”

Section: Discussionmentioning

confidence: 98%

Knowledge sharing and subsidiary R&D mandate development: A matter of dual embeddedness

Achcaoucaou

Miravitlles

Darder

2014

International Business Review

124

126

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Sharing knowledge across borders has proven to be especially relevant to multinational corporations (MNCs). Foreign subsidiaries have become active players in these knowledge flows. However, the network effects of interacting with multiple agents on the evolution of the R&D role played by subsidiaries are still undeveloped. The present study focuses on changes in subsidiary capabilities and on the dynamic mechanisms by which their R&D role might evolve, especially, as a consequence of their interaction with a variety of knowledge networks. We examine this issue by conducting four longitudinal case studies of subsidiaries operating in Spain. Using an inductive approach to theory building, we develop a general theoretical framework considering the subsidiary's embeddedness in the knowledge networks within the MNC (internal) and within the host country (external). We find that evolving towards a competence-creating mandate is characterised by the simultaneous growth of embeddedness in both internal and external networks; otherwise, a subsidiary may gravitate away from upgrading its R&D role. Thus, the contribution of this paper is to present a dynamic model that sheds light on how internal and external knowledge embeddedness interact in generating outcomes for subsidiary R&D roles.

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Section: Discussionmentioning

confidence: 98%

Knowledge sharing and subsidiary R&D mandate development: A matter of dual embeddedness

Achcaoucaou

Miravitlles

Darder

2014

International Business Review

124

126

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“…Within this process, recombination capabilities play a fundamental role in creating NLB FSAs. The work by Nell and Andersson (2012) also shows an inverted U-shape relationship between business network complexity and subsidiary embeddedness, which demonstrates that subsidiaries can also be over-embedded. According to Rugman and Verbeke (2001), previous historical, technological and organizational trajectories (heritages) shape the tacit knowledge used to develop specific idiosyncrasies through so-called micro-organization-level communities of practices, which have been shown to be essential for the creation of SSAs within MNEs (Tallman and Chacar, 2011).…”

Section: Subsidiary -Host Csas Relationshipmentioning

confidence: 86%

Misunderstanding embeddedness: a response to Ferraris’ rethinking multiple embeddedness

Rašković

2014

The Multinational Business Review

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Purpose – The purpose of this paper is to address the misapplication of the embeddedness concept in Ferraris’s (2014) paper and show how it needs to be used as a cornerstone economic sociology concept within his proposed framework. This paper is a response to his paper in the Multinational Business Review “Rethinking the literature on ‘multiple embeddedness’ and subsidiary-specific advantages”. Design/methodology/approach – The paper outlines the origin of the embeddedness concept and its evolution within the economic sociology literature. It addresses different types of embeddedness and continues with a critical analysis of Ferraris’s (2014) proposed framework of four main types of multinational enterprise (MNE) relationships. It provides suggestions for its improvement and application, as well as discusses the appropriate applications of embeddedness concept by international business (IB) scholars in MNE research. Findings – The paper shows how the embeddedness concept is mostly used as a metaphor and as a simple umbrella label for different types of connections between MNEs, their subsidiaries and different types of environments. The analysis of Ferraris’s (2014) proposed framework shows how MNE embeddedness is incorrectly understood as emanating from the balancing of local responsiveness and global integration within MNEs, where subsidiaries develop subsidiary-specific advantages (SSAs) by recombining home – host country-specific advantages and parent – subsidiary firm-specific advantages (FSAs). Originality/value – The paper adds to the existing IB understanding of MNEs’ multiple embeddedness and subsidiaries’ dual embeddedness through a wider and more structured economic sociology perspective. It provides an appropriate economic sociology-grounded typology of different types of embeddedness. A discussion of possible future research directions stresses how the embeddedness – dissembeddedness capability is a key source of MNE competitive advantage, which moderates the actual recombination process of producing FSAs and SSAs.

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“…In fact, strengthening a limited number of existing partnerships under conditions of very high complexity runs counter the firms' need for flexibility (Nell and Andersson, 2012). The role of space and place are recognized as increasingly important features of network structure and operation.…”

Section: Discussionmentioning

confidence: 99%

“…Firms' network relationships are of considerable importance, since they are often long-lasting and very influential on the strategies of the exchange partners (Nell and Andersson, 2012). This is a result of a process where firms make relationship-specific investments and integrate and link their activities to each other.…”

Section: Literature Reviewmentioning

confidence: 99%

Lending, Investments and the Financial Crisis

Beccalli¹,

Poli²

2015

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The complexity of the business network context and its effect on subsidiary relational (over-) embeddedness

Cited by 61 publications

References 56 publications

Knowledge sharing and subsidiary R&D mandate development: A matter of dual embeddedness

Knowledge sharing and subsidiary R&D mandate development: A matter of dual embeddedness

Misunderstanding embeddedness: a response to Ferraris’ rethinking multiple embeddedness

Lending, Investments and the Financial Crisis

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