Topic
Embeddedness
About: Embeddedness is a research topic. Over the lifetime, 4773 publications have been published within this topic receiving 229721 citations.
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TL;DR: In this article, the authors hypothesize that a subsidiary's local embeddedness is influenced by headquarters' use of different control mechanisms, and that local embedness, in turn, is an important antecedent to the subsidiary's level of knowledge creation.
292 citations
TL;DR: The concept of structural embeddedness as discussed by the authors refers to the importance of framing suppliers as being embedded in larger supply networks rather than in isolation, which helps buying companies create more realistic policies and strategies when managing their suppliers.
Abstract: The concept of structural embeddedness refers to the importance of framing suppliers as being embedded in larger supply networks rather than in isolation. Such framing helps buying companies create more realistic policies and strategies when managing their suppliers. Simply put, the performance of a supplier is dependent on its own supply networks. By adopting the concept of structural embeddedness, we learn that a buying company needs to look at a supplier's extended supply network to arrive at a more complete evaluation of that supplier's performance. By doing so, a buying company may do a better job of selecting suppliers for long-term relationships and may also find value in maintaining relationships with poorly performing suppliers who may potentially act as a conduit to other companies with technological and innovative resources.
291 citations
TL;DR: In this paper, the authors explored the nature of business embeddedness at the subsidiary level and its role at the corporate level and suggested that the subsidiaries' embeddedness in a network of business actors can explain why certain subsidiaries demonstrate higher achievements than others, both in terms of their market performance and regarding their importance for competence development within the MNC.
Abstract: Recent research on the competitive advantage of multinational corporations (MNC) has emphasized the importance of the ability of subsidiaries to assimilate new knowledge from their external environment. Such an ability is important for the individual subsidiary's own performance as well as for the possibility it affords the MNC to combine and use resources from different parts of the corporate system.This paper explores the nature of business embeddedness at the subsidiary level and its role at the corporate level. It is suggested that the subsidiaries' embeddedness in a network of business actors can explain why certain subsidiaries demonstrate higher achievements than others, both in terms of their market performance and regarding their importance for competence development within the MNC. It is argued that the closer a subsidiary's external business relationships with suppliers and customers the easier it will be to assimilate new knowledge from outside, the more it will be able to innovate and therefo...
291 citations
TL;DR: The analysis indicates that product-niche and process-Niche interact with network embeddedness to determine firm performance and implications for management research and practice are discussed.
Abstract: What is the relationship between niche and performance? We identify two types of niche positions—product niche and process niche—defined by the extent to which a firm offers distinctive products and has distinctive operational processes, respectively. We argue that the effect of each niche on firm performance is contingent upon network embeddedness—the extent to which a firm is involved in a network of interconnected inter-firm relationships. Using data covering the period 1995–98 pertaining to venture capital firms and their holdings in initial public offerings (IPOs), we show that both product niche and process niche interact with network embeddedness to determine firm performance. Our findings suggest that the extent to which a firm offers distinctive products or processes will be more positively associated with firm performance when network embeddedness is high. Copyright © 2004 John Wiley & Sons, Ltd.
285 citations
TL;DR: In this paper, the authors compared the performance consequences of board and ownership ties to the government with the consequences of the board ties to state-owned enterprises (SOEs) and found that ties to SOEs are associated with higher profitability.
Abstract: In many countries governments not only regulate business activities, but also become involved in the corporate governance of individual firms through ownership and board ties. While existing studies usually focus either on benefits of political connections or on costs of government influence, a political embeddedness perspective helps us consider both advantages and constraints associated with ties to the government. In particular, firms with direct ties to the government will experience significant costs associated with government officials' involvement in the corporate governance process. In contrast, firms with ties to state-owned enterprises (SOEs) are connected to the government indirectly and thus, while getting access to state-owned resources, avoid costs associated with the government's interventions. This study compares the performance consequences of board and ownership ties to the government with the consequences of board and ownership ties to SOEs. I find that ties to SOEs are associated with higher profitability, while no significant differences are discovered for firms with direct ties to the government.
284 citations