Introduction

Abstract

The purpose of the following chapter is to draw attention to the embeddedness of the third sector in the countries under study. The term embeddedness introduced by Granovetter (1985) highlights interconnections and linkages between organizations and their environments. The concept is based on the idea that the environment is of pivotal importance for organizational survival and well-being. According to Granovetter the environment constitutes the independent variable while the organization, its struggle, failure, or success represents the dependent variable. When developing the concept of embeddedness, Granovetter was researching the well-being of companies. According to his interpretation there are more prerequisites for managing a company successfully than just investing manpower and resources. Management has to take into account the environment of the organization and more precisely its social relations and specific embeddedness. It makes a great difference whether there is close surveillance by government authorities prohibiting unfair competition, bribery and corruption, or whether management constantly has to monitor business partners as well as public officials in order to safeguard smooth operations. There is no doubt that a stable political environment able to guarantee legal security is as important for organizational success as highly motivated employees loving their jobs and identifying themselves with the company.