Understanding the Cross-Level Embeddedness of Interfirm Partnership Formation

Abstract

This paper suggests a cross-level understanding of the embeddedness of interfirm partnering in the context of the formation of new partnerships. It makes a critical distinction among environmental embeddedness, interorganizational embeddedness, and dyadic embeddedness, stressing the importance of understanding the interaction of these different levels of embeddedness. This focus on the complex interaction effects of different levels of embeddedness of interfirm partnering sets this contribution apart from previous work in the field.

Contacts and Contracts: Cross-Level Network Dynamics in the Development of an Aircraft Material

“…Our findings on the interaction of interpersonal and interorganizational networks advance emerging theory on multiple levels of embeddedness (Dacin et al 1999, Hagedoorn 2006. First, our findings show network embeddedness to be distributed across individuals in organizations (insofar as embeddedness depends on interpersonal relations).…”

“…Ties at the level of organizations operate through individuals and their connections with counterparts in partner organizations (Seabright et al 1992), thus creating multiple levels of embeddedness (cf. Dacin et al 1999, Hagedoorn 2006. However, few empirical studies have investigated the interaction between interorganizational networks and interpersonal networks (Brass et al 2004, Gulati 2007, Marchington and Vincent 2004.…”

The Complexity of the Business Network Context and Its Effect on Subsidiary Relational (Over-)Embeddedness

“…In a broader context, our research adds to the understanding of networks offering opportunities as well as constraints to firms and organizations embedded in such networks (Haagedorn, 2006;Håkansson & Ford, 2002;Hansen, 1999). Our measure of complexity captures very well the fact that firms are not free to act according to their own aims only (Håkansson & Ford, 2002).…”

“…This can lead to the non-survival of entire networks (Uzzi, 1997). Strengthening a limited number of existing partnerships under conditions of very high complexity runs counter the firms' need for flexibility (Haagedorn, 2006). Firms would rather invest more in exploring new, probably weak(er) relationships which yield additional, potentially non-redundant information (Hansen, 1999).…”

The Comparative Effects of Transaction Cost Economics and Resource Based View: A Technological Alliance Motivational Perspective

“…Technological alliance is increasing rapidly since 1980's (Hagedoorn, 2006). Due to fast changing and shortening life cycle of technologies and products, high-tech firms need continuous innovation.…”