Work

The gloomy side of embeddedness: The effects of overembeddedness on inter-firm partnership formation

Year: 2008

Type: book-chapter

Abstract: We discuss the ‘gloomy’ side of firms’ embeddedness in networks of inter-firm partnerships. We propose a nested understanding of the effects of three levels of overembeddedness – environmental, inter-organizational and dyadic overembeddedness – on subsequent inter-firm partnership formation and argue for a joint examination of these three levels and their interactions over time. As a whole, increases in firms’ embeddedness will generate decreasing returns to the firms involved, prompting (i) the search for and attachment to novel partners and (ii) the dissolution of extant partnerships. On the flipside, overembeddedness thus sparks network evolution – by cueing firms to look beyond their embedded partnerships.

Source: Advances in strategic management

DOI: 10.1016/s0742-3322(08)25014-x

Authors: John Hagedoorn, Hans T.W. Frankort

Institutions: United Nations University – Maastricht Economic and Social Research Institute on Innovation and Technology, Maastricht University

Language: English

Topic: Business Strategy and Innovation

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: green

Funders: University of Toronto, Rotman School of Management, University of Toronto

OpenAlex ID: W133116873