This chapter aims to develop one of perhaps multiple specifications of embeddedness, a concept that has been used to refer broadly to the contingent nature of economic action with respect to cognition, social structure, institutions, and culture. Research on embeddedness is an exciting area in sociology and economics because it advances understanding of how social structure affects economic life. The chapter addresses propositions about the operation and outcomes of interfirm networks that are guided implicitly by ceteris paribus assumptions. While economies of time due to embeddedness have obvious benefits for the individual firm, they also have important implications for allocative efficiency and the determination of prices. Under the conditions, social processes that increase integration combine with resource dependency problems to increase the vulnerability of networked organizations. The level of investment in an economy promotes positive changes in productivity, standards of living, mobility, and wealth generation.

Social Structure and Competition in Interfirm Networks: The Paradox of Embeddedness

计量经济分析 = Econometric analysis

How has Japan become a major economic power, a world leader in the automotive and electronics industries? What is the secret of their success? The consensus has been that, though the Japanese are not particularly innovative, they are exceptionally skilful at imitation, at improving products that already exist. But now two leading Japanese business experts, Ikujiro Nonaka and Hiro Takeuchi, turn this conventional wisdom on its head: Japanese firms are successful, they contend, precisely because they are innovative, because they create new knowledge and use it to produce successful products and technologies. Examining case studies drawn from such firms as Honda, Canon, Matsushita, NEC, 3M, GE, and the U.S. Marines, this book reveals how Japanese companies translate tacit to explicit knowledge and use it to produce new processes, products, and services.

The knowledge-creating company : how Japanese companies create the dynamics of innovation

Statistics for Spatial Data.

We explore the theoretical foundations of value creation in e-business by examining how 59 American and European e-businesses that have recently become publicly traded corporations create value. We observe that in e-business new value can be created by the ways in which transactions are enabled. Grounded in the rich data obtained from case study analyses and in the received theory in entrepreneurship and strategic management, we develop a model of the sources of value creation. The model suggests that the value creation potential of e-businesses hinges on four interdependent dimensions, namely: efficiency, complementarities, lock-in, and novelty. Our findings suggest that no single entrepreneurship or strategic management theory can fully explain the value creation potential of e-business. Rather, an integration of the received theoretical perspectives on value creation is needed. To enable such an integration, we offer the business model construct as a unit of analysis for future research on value creation in e-business. A business model depicts the design of transaction content, structure, and governance so as to create value through the exploitation of business opportunities. We propose that a firm's business model is an important locus of innovation and a crucial source of value creation for the firm and its suppliers, partners, and customers. Copyright © 2001 John Wiley & Sons, Ltd.

https://uazuay.edu.ec/bibliotecas/e-business/Value_Creation_in_E-Business.pdf

Value creation in E-business

We combine theory and research on alliance networks and on new firms to investigate the impact of variation in startups’ alliance network composition on their early performance. We hypothesize that startups can enhance their early performance by 1) establishing alliances, 2) configuring them into an efficient network that provides access to diverse information and capabilities with minimum costs of redundancy, conflict, and complexity, and 3) judiciously allying with potential rivals that provide more opportunity for learning and less risk of intra-alliance rivalry. An analysis of Canadian biotech startups’ performance provides broad support for our hypotheses, especially as they relate to innovative performance. Overall, our findings show how variation in the alliance networks startups configure at the time of their founding produces significant differences in their early performance, contributing directly to an explanation of how and why firm age and size affect firm performance. We discuss some clear, but challenging, implications for managers of startups. Copyright © 2000 John Wiley & Sons, Ltd.

Don't go it alone: alliance network composition and startups' performance in Canadian biotechnology

This research was supported in part by a grant from the Office of Research Administration, University of Toronto. For helpful comments on this paper, we thank John Freeman and three anonymous ASO reviewers. For assistance with data collection and coding, we also thank Debbie Freeman, Brian Gaon, Gayle Greenbaum, and Sonja Saksida. This study examined the impact of institutional linkages on the failure of child care service organizations in Metropolitan Toronto, Canada, between 1971 and 1987. A dynamic analysis shows that organizations with institutional linkages exhibited a significant survival advantage that increased with the intensity of competition. The effectiveness of institutional linkages in contributing to survival also depended on the characteristics of organizations that established ties and theexternal legitimacy of the ties themselves. Institutional linkages also had a significant moderating influence on the relationship between organizational transformation and the risk of failure. The findings of this study suggest that efforts to establish the prepotency of institutional versus ecological explanations of organizational survival should not preclude inquiry into the causal consistencies and interactions between these theories' predictions.'

Institutional Linkages and Organizational Mortality

Picking winners or building them? Alliance, intellectual, and human capital as selection criteria in venture financing and performance of biotechnology startups

Permission obtained via SHERPA/RoMEO. Letter from publisher grants permission to retain article in OPUS.

/pdf/making-the-next-move-how-experiential-and-vicarious-learning-1dmmie0i08.pdf

Making the Next Move: How Experiential and Vicarious Learning Shape the Locations of Chains' Acquisitions:

Joel A. C. Baum and Stephen J. Mezias New York University This study examines the impact of localized competition on rates of failure in the Manhattan hotel industry from 1898 to 1990. The study investigates whether the organizations in a population with more similar resource requirements compete more intensely. This approach builds on existing density-based models of interorganizational competition by including variation at the organizational level directly in both the model and measures of competition. A dynamic analysis shows that hotels located in densely populated regions of the distributions of organizational size, geographic location, and price experienced significantly higher failure rates. The findings show how an ecological approach to competition that incorporates intrapopulation variation can provide a more detailed understanding of the competitive dynamics and evolution of organizational populations.'

https://www.jstor.org/stable/pdf/2393473.pdf

Joel A. C. Baum

Papers

Don't go it alone: alliance network composition and startups' performance in Canadian biotechnology

Institutional Linkages and Organizational Mortality

Picking winners or building them? Alliance, intellectual, and human capital as selection criteria in venture financing and performance of biotechnology startups

Making the Next Move: How Experiential and Vicarious Learning Shape the Locations of Chains' Acquisitions:

Localized Competition and Organizational Failure in the Manhattan Hotel Industry, 1898-1990