Abstract
Based on the literature review Ratajczak-Mrozek systematizes positive and negative effects of social embeddedness , interorganizational network embeddedness and territorial embeddedness on companies’ business activities and performance. The concept of embeddedness is used to analyze the impact of social context and personal relationships , interorganizational (business) relationships as well as spatial scope of specific relationships on companies’ activity and performance. The analysis includes both structural embeddedness and relational embeddedness , focusing on the quality of the relationships.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
References
Ahuja, Gautam. 2000. Collaboration Networks, Structural Holes, and Innovation: A Longitudinal Study. Administrative Science Quarterly 45 (3): 425–455.
Ahuja, Gautam, Francisco Polidoro, and Will Mitchell. 2009. Structural Homophily or Social Asymmetry? The Formation of Alliances by Poorly Embedded Firms. Strategic Management Journal 30 (9): 941–958.
Alvarez, Sharon, and Lowell Busenitz. 2001. The Entrepreneurship of Resource-Based Theory. Journal of Management 27 (6): 755–775.
Andersen, Kristina Vaarst. 2013. The Problem of Embeddedness Revisited: Collaboration and Market Types. Research Policy 42 (1): 139–148.
Andersson, Svante, and Natasha Evers. 2015. International Opportunity Recognition in International New Ventures–a Dynamic Managerial Capabilities Perspective. Journal of International Entrepreneurship 13 (3): 260–276.
Anderson, James C., Håkan Håkansson, and Jan Johanson. 1994. Dyadic Business Reiationships within a Business Network Context. Journal of Marketing 58 (October): 1–15.
Andersson, Ulf, and Mats Forsgren. 1996. Subsidiary Embeddedness and Control in the Multinational Corporation. International Business Review 5 (5): 487–508.
Andersson, Ulf, and Ulf Holm. 2002. Managing Integration of Subsidiary Knowledge in the Multinational Corporation-a Note on the Role of Headquarters. In Critical Perspectives on Internationalisation, ed. Virpi Havila, Mats Forsgren, and Håkan Håkansson, 359–385. Oxford: Elsevier.
Andersson, Ulf, Desiree Blankenburg Holm, and Martin Johanson. 2005. Opportunities, Relational Embeddedness and Network Structure. In Managing Opportunity Development in Business Networks, ed. Pervez Ghauri, Amjad Hadjikhani, and Jan Johanson, 27–48. London: Palgrave Macmillan.
Andersson, Ulf, Mats Forsgren, and Ulf Holm. 2001. Subsidiary Embeddedness and Competence Development in MNC’s - A Multi-Level Analysis. Organisation Studies 22 (6): 1013–1034.
Araujo, Luis, Anna Dubois, and Lars-Erik Gadde. 1999. Managing Interfaces with Suppliers. Industrial Marketing Management 28 (5): 497–506.
Baraldi, Enrico. 2008. Strategy in Industrial Networks: Experiences from IKEA. California Management Review 50 (4): 99–126.
Bathelt, Harald, Anders Malmberg, and Peter Maskell. 2004. Clusters and Knowledge: Local Buzz, Global Pipelines and the Process of Knowledge Creation. Progress in Human Geography 28 (1): 31–56.
Broschak, Joseph. 2004. Managers’ Mobility and Market Interface: The Effect of Managers’ Career Mobility on the Dissolution of Market Ties. Administrative Science Quarterly 49: 608–640.
Burt, Ronald S. 1992. Structural Holes. The Social Structure of Competition. Cambridge: Harvard University Press.
Burt, Ronald S. 2000. The Network Structure of Social Capital. Research in Organizational Behaviour 22: 345–423.
Chandra, Yanto, Chris Styles, and Ian Wilkinson. 2009. The Recognition of First Time International Entrepreneurial Opportunities: Evidence from Firms in Knowledge-Based Industries. International Marketing Review 26 (1): 30–61.
Chandra, Yanto, Chris Styles, and Ian Wilkinson. 2012. An Opportunity-Based View of Rapid Internationalization. Journal of International Marketing 20 (1): 74–102.
Cho, Hee-Jae, and Vladimir Pucik. 2005. Relationship between Innovativeness, Quality, Growth, Profitability, and Market Value. Strategic Management Journal 26 (6): 555–575.
Coleman, James. 1988. Social Capital in the Creation of Human Capital. The American Journal of Sociology 94: 95–120.
Cross, Rob, Andrew Parker, Laurence Prusak, and Stephen P. Borgatti. 2005. Knowing What We Know: Supporting Knowledge Creation and Sharing in Social Networks. Organizational Dynamics 30 (2): 100–120.
Czakon, Wojciech. 2011. Paradygmat sieciowy w naukach o zarządzaniu. Przegląd Organizacji 11: 3–6.
De Bruijn, Hans, and Ernst Ten Heuvelhof. 2008. Management in Networks: On Multi-Actor Decision Making. Oxon: Routledge.
De Carolis, Donna, and Patrick Saparito. 2006. Social Capital, Cognition, and Entrepreneurial Opportunities: A Theoretical Framework. Entrepreneurship: Theory and Practice 30 (1): 41–56.
Duarte, Margarida, and Gary Davies. 2003. Testing the Conflict–performance Assumption in Business-to-Business Relationships. Industrial Marketing Management 32 (2): 91–99.
Dubini, Paolo, and Howard Aldrich. 1991. Personal and Extended Networks Are Central to the Entrepreneurial Process. Journal of Business Venturing, no. 6: 305–313.
Dunning, John H. 1998. Location and the Multinational Enterprise: A Neglected Factor? Journal of International Business Studies 29 (1): 45–66.
Elfring, Tom, and Willem Hulsink. 2003. Networks in Entrepreneurship: The Case of High-Technology Firms. Small Business Economics 21 (4): 409–422.
Ellis, Paul. 2000. Social Ties and Foreign Market Entry. Journal of International Business Studies 31 (3): 443–469.
Ellis, Paul D. 2011. Social Ties and International Entrepreneurship: Opportunities and Constraints Affecting Firm Internationalization. Journal of International Business Studies 42 (1): 99–127.
Freeman, Susan, and S.Tamer Cavusgil. 2007. Toward a Typology of Commitment States Among Managers of Born-Global Firms: A Study of Accelerated Internationalization. Journal of International Marketing 15 (4): 1–40.
Gadde, Lars-Erik, and Ivan Snehota. 2000. Making the Most of Supplier Relationships. Industrial Marketing Management 29 (4): 305–316.
Gadde, Lars Erik, Lars Huemer, and Håkan Håkansson. 2003. Strategizing in Industrial Networks. Industrial Marketing Management 32 (5): 357–364.
Gargiulo, Martin, and Mario Benassi. 2000. Trapped in Your Own Net? Network Cohesion, Structural Holes, and the Adaptation of Social Capital. Organization Science 3 (1): 183–196.
Gertler, Meric. 2003. Tacit Knowledge and the Economic Geography of Context, or the Undefinable Tacitness of Being (There). Journal of Economic Geography 3 (1): 75–99.
Gilsing, Victor, Bart Nooteboom, Wim Vanhaverbeke, Geert Duysters, and Ad van den Oord. 2008. Network Embeddedness and the Exploration of Novel Technologies: Technological Distance, Betweenness Centrality and Density. Research Policy 37 (10): 1717–1731.
Grabher, Gernot. 1993. “The Weakness of Strong Ties—the Lock-in of Regional Development in the Ruhrgebeit.” In The Embedded Firm: On the Socioeconomics of Industrial Networks, ed. Gernot Grabher, 255–277. London: Routledge.
Granovetter, Mark. 1973. The Strength of Weak Ties. The American Journal of Sociology 78 (6): 1360–1380.
Granovetter, Mark. 1983. The Strength of Weak Ties: A Network Theory Revisited. Sociological Theory 1: 201–233.
Granovetter, Mark. 1985. Economic Action and Social Structure: The Problem of Embeddedness Mark Granovetter. American Journal of Sociology 91 (3): 481–510.
Gulati, Ranjay, Nitin Nohria, and Akbar Zaheer. 2000. Strategic Networks. Strategic Management Journal 21 (3): 203–215.
Gummesson, Evert. 2002. Relationship Marketing and a New Economy: It’s Time for De-programming. Journal of Services Marketing 16 (7): 585–589.
Hadjikhani, Amjad, Pervez Ghauri, and Jan Johanson. 2005. Introduction: Opportunity Development in Business Networks. In Managing Opportunity Development in Business Networks, ed. Pervez Ghauri, Amjad Hadjikhani, and Jan Johanson, 1–24. New York: Palgrave Macmillan.
Håkansson, Håkan. 1987. Product Development in Networks. In Industrial Technological Development: A Network Approach, ed. Håkan Håkansson, 84–127. London: Croom Helm.
Håkansson, Håkan, and Ivan Snehota. 1989. No Business Is an Island. Scandinavian Journal of Management 5 (3): 187–200.
Håkansson, Håkan, and Ivan Snehota. 1995. Developing Relationships in Business Networks. London: Routledge.
Håkansson, Håkan, and Ivan Snehota. 1998. The Burden of Relationships. In Network Dynamics in International Marketing or Who’s Next, ed. Peter Naudé, and Peter Turnbull, 16–25. Emerald: Bingley.
Håkansson, Håkan, and Alexandra Waluszewski. 2013. A Never Ending Story—Interaction Patterns and Economic Development. Industrial Marketing Management 42 (3): 443–454.
Håkansson, Håkan, David Ford, Lars-Erik Gadde, Ivan Snehota, and Alexandra Waluszewski. 2009. Business in Networks. Chichester, UK: Wiley.
Halinen, Aino, and Jaana Tähtinen. 2002. A Process Theory of Relationship Ending. International Journal of Service Industry Management 13 (2): 163–180.
Hallén, Lars. 1992. Infrastructural Networks in International Business. In Managing Networks in International Business, ed. Matts Forsgren, and Jan Johanson, 77–92. Amsterdam: Gordon and Breach Science Publishers.
Hausman, Angela. 2001. Variations in Relationship Strength and Its Impact on Performance and Satisfaction in Business Relationships. Journal of Business & Industrial Marketing 16 (7): 600–616.
Havens, Pers-Anders, and Knut Senneseth. 2001. A Panel Study of Firm Growth among SMEs in Networks. Small Business Economics 16 (4): 293–302.
Hess, Martin. 2004. ‘Spatial’ Relationships? Towards a Reconceptualization of Embeddedness. Progress in Human Geography 28 (2): 165–186.
Hilmersson, Mikael, and Stylianos Papaioannou. 2015. SME International Opportunity Scouting—empirical Insights on Its Determinants and Outcomes. Journal of International Entrepreneurship 13 (3): 186–211.
Hilmersson, Mikael, Martin Johanson, Helene Lundberg, Stylianos Papaioannou, and Aron Thyr. 2015. Business Networks, Firm Strategy, Opportunity Development and Strategic Outcomes: A Conceptualization of the Initial Phase of Firm Internationalization. In Handbook on International Alliance and Network Research, ed. Jorma Larimo, Niina Nummela, and Tuija Mainela, 171–194. Cheltenham: Edward Elgar.
Ibarra, Herminia. 1993. Personal Networks of Women and Minorities in Management: A Conceptual Framework. The Academy of Management Review 18 (1): 56–87.
Jack, Sarah L., and Alistair R. Anderson. 2002. The Effects of Embeddedness on the Entrepreneurial Process. Journal of Business Venturing 17 (5): 467–487.
Jack, Sarah, Sarah Drakopoulou Dodd, and Alistair R. Anderson. 2008. Change and the Development of Entrepreneurial Networks over Time: A Processual Perspective. Entrepreneurship & Regional Development 20 (2): 125–159.
Jain, Naveen K., Somnath Lahiri, and Douglas R. Hausknecht. 2013. Emerging Market Multinationals’ Location Choice. European Business Review 25 (3): 263–280.
Johannisson, Bengt, and Mette Mønsted. 1997. Contextualizing Entrepreneurial Networking. International Studies of Management & Organization 27 (3): 109–136.
Johanson, Jan, and Lars-Gunnar Mattsson. 1987. Interorganizational Relations in Industrial Systems: A Network Approach Compared with the Transaction-Cost Approach. International Studies of Management & Organization 17 (1): 34–48.
Johnsen, Rhona E., and David Ford. 2008. Exploring the Concept of Asymmetry: A Typology for Analysing Customer-Supplier Relationships. Industrial Marketing Management 37 (4): 471–483.
Jones, Andrew. 2008. Beyond Embeddedness: Economic Practices and the Invisible Dimensions of Transnational Business Activity. Progress in Human Geography 32 (1): 71–88.
Kaats, Edwin, and Wilfrid Opheij. 2014. Creating Conditions for Promising Collaboration: Alliances, Networks, Chains, Strategic Partnerships. Heidelberg: Springer.
Kadushin, Charles. 2012. Understanding Social Networks: Theories, Concepts, and Findings. Oxford: Oxford University Press.
Kalwani, Manohar, and Narakesari Narayandas. 1995. Long-Term Manufacturer-Supplier Relationships: Do They Pay off for Supplier Firms? Journal of Marketing 59 (1): 1–16.
Knoben, Joris. 2008. Firm Mobility and Organizational Networks: Innovation, Embeddedness and Economic Geography. Cheltenham: Edward Elgar.
Krackhardt, David. 2003. The Strength of Strong Ties. In Networks in the Knowledge Economy, ed. Rob Cross, Andrew Parker, and Lisa Sasson, 82–108. Oxford: Oxford University Press.
Kuciński, Kazimierz. 2004. Geografia Ekonomiczna. Zarys Teoretyczny. Warszawa: Szkoła Główna Handlowa w Warszawie.
Larson, Andrea. 1992. Network Dyads in Entrepreneurial Settings: A Study of the Governance of Exchange Relationships. Administrative Science Quarterly 37 (1): 76–104.
Leszczyński, Grzegorz. 2014. Adaptacja w Relacjach Business-to-Business. Uwarunkowania i efekty. Poznań: Wydawnictwo Uniwersytetu Ekonomicznego w Poznaniu I Efekty.
Mainela, Tuija, and Vesa Puhakka. 2008. Embeddedness and Networking as Drivers in Developing an International Joint Venture. Scandinavian Journal of Management 24 (1): 17–32.
Manolova, Tatiana S., Ivan M. Manev, and Bojidar S. Gyoshev. 2010. In Good Company: The Role of Personal and Inter-Firm Networks for New-Venture Internationalization in a Transition Economy. Journal of World Business 45 (3): 257–265.
McFadyen, Ann, and Albert Canella. 2004. Social Capital and Knowledge Creation: Diminishing Returns of the Number and Strength of Exchange Relationships. Academy of Management Journal 47 (5): 735–746.
McGrath, Cathleen, Charles Vance, and Edmund Gray. 2003. With a Little Help from Their Friends: Exploring the Advice Networks of Software Entrepreneurs. Creativity and Innovation Management 12 (1): 2–10.
Meschi, Pierre Xavier, and Ulrich Wassmer. 2013. The Effect of Foreign Partner Network Embeddedness on International Joint Venture Failure: Evidence from European Firms’ Investments in Emerging Economies. International Business Review 22 (4): 713–724.
Mitręga, Maciej, and Judy Zolkiewski. 2012. Negative Consequences of Deep Relationships with Suppliers: An Exploratory Study in Poland. Industrial Marketing Management 41 (5): 886–894.
Mizruchi, Mark, Linda Brewster Stearns, and Anne Fleischer. 2010. Getting a Bonus: Social Networks, Performance, and Reward Among Commercial Bankers. Organization Science 22 (1): 42–59.
Moran, Peter. 2005. Structural vs. Relational Embeddedness: Social Capital and Managerial Performance. Strategic Management Journal 26 (12): 1129–1151.
Mytchell, James C. 1969. “The Concept and Use of Social Networks.” In Social Networks in Urban Situations: Analyses of Personal Relationships in Central African Towns, 1–50. Manchester: Manchester University Press.
Nahapiet, Janine, and Sumantra Ghoshal. 1998. Social Capital, Intellectual Capital, and the Organizational Advantage. The Academy of Management Review 23 (2): 242–266.
Narula, Rajneesh, and Grazia D. Santangelo. 2012. Location and Collocation Advantages in International Innovation. Multinational Business Review 20 (1): 6–25.
Nowak, Dariusz. 2012. Zarządzanie Międzyorganizacyjnymi Relacjami Kooperacyjnymi w Przedsiębiorstwach Przemysłowych. Poznań: Wydawnictwo Uniwersytetu Ekonomicznego w Poznaniu.
Nowiński, Witold, and Alex Rialp. 2016. The Impact of Social Networks on Perceptions of International Opportunities. Journal of Small Business Management 54 (2): 445–461.
Oinas, Päivi. 1999. Activity-Specificity in Organizational Learning: Implications for Analysing the Role of Proximity. GeoJournal 49 (4): 363–372.
Ozgen, Eren, and Robert A. Baron. 2007. Social Sources of Information in Opportunity Recognition: Effects of Mentors, Industry Networks, and Professional Forums. Journal of Business Venturing 22 (2): 174–192.
Pavlovich, Kathryn, and Kate Kearins. 2004. Structural Embeddedness and Community-Building through Collaborative Network Relationships. Management 7 (3): 195–214.
Polidoro, Francisco, Gautam Ahuja, and Will Mitchell. 2011. When the Social Structure Overshadows Competitive Incentives: The Effects of Network Embeddedness on Joint Venture Dissolution. Academy of Management Journal 54 (1): 203–223.
Porter, Michael E. 1990. New Global Strategies for Competitive Advantage. Strategy & Leadership 18 (3): 4–14.
Rapport, Anatol. 1957. Contributions to the Theory of Random and Biased Nets. Bulletin of Mathematical Biophysics 19 (4): 257–277.
Ratajczak-Mrozek, Milena. 2012. Global Business Networks and Cooperation within Supply Chain as a Strategy for High-Tech Companies’ Growth. Journal of Entrepreneurship, Management and Innovation 8 (1): 35–51.
Ratajczak-Mrozek, Milena. 2014. The Importance of Locally Embedded Personal Relationships for SME Internationalisation Processes – from Opportunity Recognition to Company Growth. Journal of Entrepreneurship Management and Innovation 10 (3): 89–108.
Ratajczak-Mrozek, Milena. 2015. On the Way to Being a Micromultinational-Hindrances and Success Factors. Progress in International Business Research 10: 295–311.
Ratajczak-Mrozek, Milena, and Łukasz Małys. 2012. Supply Chain Cooperation and Company Performance. Argumenta Oeconomica 29 (2): 89–107.
Reagans, Ray, and Bill McEvily. 2003. Network Structure and Knowledge Transfer: The Effects of Cohesion and Range. Administrative Science Quarterly 48 (2): 240–267.
Ritter, Thomas, Ian F. Wilkinson, and Wesley J. Johnston. 2004. Managing in Complex Business Networks. Industrial Marketing Management 33 (3): 175–183.
Rogers, Everett, and Lawrence Kincaid. 1981. Communication Networks: Toward a New Paradigm for Research. New York: Free Press.
Rowley, Tim, Dean Behrens, and David Krackhardt. 2000. Redundant Governance Structures: An Analysis of Structural and Relational Embeddedness in the Steel and Semiconductor Industries. Strategic Management Journal 21 (3): 369–386.
Rugman, Alan M., and Alain Verbeke. 1992. A Note on the Transnational Solution and the Transaction Cost Theory of Multinational Strategic Management. Journal of International Business Studies 23 (4): 761–771.
Sequeira, Jennifer, Stephen Mueller, and Jeffrey McGee. 2007. The Influence of Social Ties and Self-Efficacy in Forming Entrepreneurial Intentions and Motivating Nascent Behavior. Journal of Developmental Entrepreneurship 12 (3): 275–293.
Sharma, D.Deo, and Anders Blomstermo. 2003. The Internationalization Process of Born Globals: A Network View. International Business Review 12 (6): 739–753.
Sigfusson, Thor, and Simon Harris. 2013. Domestic Market Context and International Entrepreneurs’ Relationship Portfolios. International Business Review 22 (1): 243–258.
Storper, Michael. 1997. The Regional World: Territorial Development in a Global Economy. New York: Guilford Press.
Tähtinen, Jaana, and Aino Halinen. 2002. Research on Ending Exchange Relationships: A Categorization, Assessment and Outlook. Marketing Theory 2 (2): 165–188.
Uzzi, Brian. 1996. The Sources and Consequences of Embeddedness for the Economic Performance of Organizations: The Network Effect. American Sociological Review 61 (4): 674–698.
Uzzi, Brian. 1997. Social Structure and Competition in Interfirm Networks: The Paradox of Embeddedness. Administrative Science Quarterly 42 (1): 35–67.
Uzzi, Brian, and Jarrett Spiro. 2005. Collaboration and Creativity: The Small World Problem. American Journal of Sociology 111 (2): 447–504.
Villena, Verónica H., Elena Revilla, and Thomas Y. Choi. 2011. The Dark Side of Buyer-Supplier Relationships: A Social Capital Perspective. Journal of Operations Management 29 (6): 561–576.
Wilkinson, Ian F., Lars-Gunnar Mattsson, and Geoff Easton. 2000. International Competitiveness and Trade Promotion Policy from a Network Perspective. Journal of World Business 35 (3): 275–299.
Zaefarian, Ghasem, Sebastian Forkmann, Maciej Mitręga, and Stephan C. Henneberg. 2016. “A Capability Perspective on Relationship Ending and Its Impact on Product Innovation Success and Firm Performance.” Long Range Planning 50 (2): 184–199.
Zolkiewski, Judy, and Peter Turnbull. 2002. Do Relationship Portfolios and Networks Provide the Key to Successful Relationship Management? Journal of Business Industrial Marketing 17 (7): 575–597.
Author information
Authors and Affiliations
Corresponding author
Rights and permissions
Copyright information
© 2017 The Author(s)
About this chapter
Cite this chapter
Ratajczak-Mrozek, M. (2017). The Importance of Embeddedness for Companies’ Activities—Perspective of Relationships and Interactions. In: Network Embeddedness. Palgrave Studies of Internationalization in Emerging Markets. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-319-56511-8_5
Download citation
DOI: https://doi.org/10.1007/978-3-319-56511-8_5
Published:
Publisher Name: Palgrave Macmillan, Cham
Print ISBN: 978-3-319-56510-1
Online ISBN: 978-3-319-56511-8
eBook Packages: Business and ManagementBusiness and Management (R0)