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 examined the causes of financial malfeasance in the largest U.S. corporations between 1995 and 2004 and found that differential social structures create dependencies, incentives, and opportunities to engage in financial misbehavior.
Abstract: This article examines the causes of financial malfeasance in the largest U.S. corporations between 1995 and 2004. The findings support organizational-political embeddedness theory, which suggests that differential social structures create dependencies, incentives, and opportunities to engage in financial malfeasance. The historical analysis shows that neoliberal policies enacted between 1986 and 2000 resulted in organizational and political structures that permitted managers to engage in financial malfeasance. Our quantitative analysis provides three main findings. First, capital dependence on investors creates incentives to engage in financial malfeasance. Second, managerial strategies to increase shareholder value create incentives to engage in financial malfeasance. Third, the multilayer-subsidiary form and the political structure permitting corporate PAC contributions create opportunities to engage in financial malfeasance. These findings have important implications for public policy; the corporate an...
100 citations
TL;DR: In this article, the authors investigate factors that influence family business owners' choice between passing ownership within the family or to new external owners, and hypothesize that ownership dispersion, number of potential heirs, multigenerational involvement, and whether the chief executive officer is a family member influence the choice of an internal or external transition of ownership.
Abstract: We investigate factors that influence family business owners' choice between passing ownership within the family or to new external owners. Taking an embeddedness perspective focusing on owner-family structure and involvement, we hypothesize that ownership dispersion, number of potential heirs, multigenerational involvement, and whether the chief executive officer is a family member influence the choice of an internal or external transition of ownership. We build a longitudinal data set from a sample of 3,829 family firms and their ownership transitions. Our theorizing and findings regarding ownership transitions complements the abundant research on management succession and therefore constitutes an important contribution to the literature.
100 citations
TL;DR: In this paper, the authors explored the relationship between network embeddedness and service innovation performance and concluded that enterprises need to be tied more closely to their business partners to achieve better service innovation.
Abstract: Research suggests that business network embeddedness is an important element in innovation performance, but most often manufacturing industry is the object of study. In recent years, the service industries have become more important; hence, this study explores the relationship between network embeddedness and service innovation performance. Statistical tools, including correlation, structural equation modelling, and regression analysis, are used to analyse questionnaire results. It is found that, except for research institute embeddedness, all other forms of network embeddedness have a significant impact on service innovation performance. It is concluded that enterprises need to be tied more closely to their business partners to achieve better service innovation performance.
99 citations
TL;DR: In this paper, the authors examined the dynamic impacts of external/internal embeddedness on the autonomy of overseas R&D subsidiaries of German firms, and found that high internal embeddedness in the past may help laboratories gain higher levels of autonomy in the future, whereas high external embeddedness may lead to lower levels of autonomic levels of expertise in the foreseeable future.
Abstract: Prior investigations treated subsidiary autonomy more or less as a static concept, but the headquarters-subsidiary relationship is likely to evolve and result in changing power positions over time. This article examines the static and dynamic impacts of external/internal embeddedness on the autonomy of overseas R&D subsidiaries. Based on data from 73 overseas R&D subsidiaries of German firms, we show that a dynamic perspective indeed produces counterintuitive results, namely that high internal embeddedness in the past may help laboratories gain higher levels of autonomy in the future, whereas high external embeddedness may lead to lower levels of autonomy in the future. Our results indicate that building trust and linking up with headquarters are important strategies for subsidiaries wishing to be granted autonomy in the future.
99 citations
TL;DR: In this article, a classification of potential ties between large firms and local economies is proposed, first by working on various sections of literature concerning multinational enterprises, subsidiaries and regional development, and then, building on a model of a dynamic local economy, a framework is sketched in which different combinations of linkages are put in relation to different pools and degrees of strength of social capital and other local factors.
Abstract: A classification of potential ties between large firms and local economies is proposed, first, by working on various sections of literature concerning multinational enterprises, subsidiaries and regional development. Then, building on a model of a dynamic local economy, i.e. the vital industrial district, a framework is sketched in which different combinations of linkages are put in relation to different pools and degrees of strength of social capital and other local factors. The main object of this paper is to present that framework and illustrate a proposition nested in it. The proposition is that involvement in knowledge exchange and institutional building, identifying ‘developmental embeddedness’, is more probable where and when the local factors are neither ‘too weak’ nor ‘too strong’, and contextual policies fostering the developmental role of large firm units are present.
98 citations