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The Sources and Consequences of Embeddedness for the Economic Performance of Organizations: The Network Effect

Brian Uzzi
- 01 Jan 2007 - 
- Vol. 8, Iss: 3, pp 44-60
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TLDR
In this article, the authors tried to take the term of embededness out of the framework of the common program assumption and to disclose how the embeddness and network structure influence economic action and found that firms organized as networks had better chances to survive than those who support casual market ties.
Abstract
In this paper I try to take the term of embededness out of the framework of the common program assumption and to disclose how the embededness and network structure influence economic action. Basing on the existed theory and ethnographic analysis of the 23 clothes production companies I worked out the methodological scheme which depicts the details, functions and the sources of embededness. On the basis of this scheme I formulated and tested a list of hypotheses with the help of the data on network interactions of all the companies producing qualitative female clothes in the New-York sewing industry. It was found out that the embededness is the exchange system providing unique opportunities in comparison to the market and that firms organized as networks had better chances to survive than those who support casual market ties. However there is a pick of positive effect of embededness at a particular level after which it starts going down.

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Citations
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Alliances and networks

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Clusters and knowledge: local buzz, global pipelines and the process of knowledge creation

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Where Do Interorganizational Networks Come From

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References
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Book

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TL;DR: Douglass C. North as discussed by the authors developed an analytical framework for explaining the ways in which institutions and institutional change affect the performance of economies, both at a given time and over time.
Journal ArticleDOI

Economic Action and Social Structure: The Problem of Embeddedness

TL;DR: In this article, the extent to which economic action is embedded in structures of social relations, in modern industrial society, is examined, and it is argued that reformist economists who attempt to bring social structure back in do so in the "oversocialized" way criticized by Dennis Wrong.
Journal ArticleDOI

Structural Holes: The Social Structure of Competition.

TL;DR: In this article, structural holes are defined as network gaps between players which create entrepreneurial opportunities for information access, timing, referrals, and for control, and the structural holes also generate control benefits giving certain players an advantage in negotiating their relationships.
Journal ArticleDOI

Mixing Qualitative and Quantitative Methods: Triangulation in Action @

TL;DR: There is a distinct tradition in the literature on social science research methods that advocates the use of multiple methods as mentioned in this paper, which is usually described as one of convergent methodology, multimethod/multitrait (Campbell and Fiske, 1959), convergent validation or, what has been called "triangulation".
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Comparative Economic Organization: The Analysis of Discrete Structural Alternatives

TL;DR: Williamson as discussed by the authors combines institutional economics with aspects of contract law and organization theory to identify and explicate the key differences that distinguish three generic forms of economic organization-market, hybrid, and hierarchy.
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