The Sources and Consequences of Embeddedness for the Economic Performance of Organizations: The Network Effect
1996/08/01 by Brian Uzzi · 73 citations
Business, Management and Accounting · #Business Strategy and Innovation #Cooperative Studies and Economics #Entrepreneurship Studies and Influences
paper · doi:10.2307/2096399
Abstract
In this paper, I attempt to advance the concept of embeddedness beyond the level of a programmatic statement by developing a formulation that specifies how embeddedness and network structure affect economic action. On the basis of existing theory and original ethnographies of 23 apparel firms, I develop a systematic scheme that more fully demarcates the unique features, functions, and sources of embeddedness. From this scheme, I derive a set of refutable implications and test their plausibility, using another data set on the network ties of all better dress apparel firms in the New York apparel economy. Results reveal that embeddedness is an exchange system with unique opportunities relative to markets and that firms organized in networks have higher survival chances than do firms which maintain arm's-length market relationships. The positive effect of embeddedness reaches a threshold, however, after which point the positive effect reverses itself. Embeddedness 1
Citations
Cited by
- Trust Thy Crooked Neighbor
- The Social Climbing Game
- Coopetition and trust: What we know, where to go next
- Unpacking the Institutional Complexity in Adoption of CSR Practices in Multinational Enterprises
- Performance Implications of Ties to the Government and SOEs: A Political Embeddedness Perspective
- Toward a Model of Organizational Co‐Evolution in Transition Economies
- Network Ties, Reputation, and the Financing of New Ventures
- Social Ties
- Proximity and Innovation: From Statics to Dynamics
- Co-evolution of Firms, Industries and Networks in Space
- Improving Teacher Job Satisfaction: The Roles of Social Capital, Teacher Efficacy, and Support
- Platforms Disrupting Reputation: Precarity and Recognition Struggles in the Remote Gig Economy
- Co-invention networks and inventive productivity in US cities
- Holistic Archetypes of IT Outsourcing Strategy: A Contingency Fit and Configurational Approach1
- Who is right about the modern economy: Polanyi, Zelizer, or both?
- Structural embeddedness, uncertainty, and international trade
- Rethinking Greenwashing: Corporate Discourse, Unethical Practice, and the Unmet Potential of Ethical Consumerism
- Neither Consent nor Property: A Policy Lab for Data Law
- Social Networks Analysis in Accounting and Finance*
- Greater Reliance on Major Customers and Auditor Going‐Concern Opinions
- Network Analysis of Audit Partner Rotation†
- Selection Capability: How Capability Gaps and Internal Social Frictions Affect Internal and External Strategic Renewal
- Organizations Non Gratae? The Impact of Unethical Corporate Acts on Interorganizational Networks
- The advantage of experienced start-up founders in venture capital acquisition: evidence from serial entrepreneurs
- The effect of institutional quality on firm export performance in emerging economies: a contingency model of firm age and size
- Policy Actors’ Struggle for Attention: The Role of Peer Networks in the Migration Discourse on Twitter (X)
- Matching opportunities with resources: A framework for analysing (migrant) entrepreneurship from a mixed embeddedness perspective
- The influence of local embeddedness on the economic, social, and environmental sustainability practices of regional small firms
- United we stand, divided we fall? Clustered firms’ relationships after the 2008 crisis
- Evaluation of Agents under Simulated AI Marketplace Dynamics
- Embedding Local Places in Global Spaces: Geographical Indications as a Territorial Development Strategy
- Multiplex Networks Provide Structural Pathways for Social Contagion in Rural Social Networks
- Seal of Approval? Trust signals and cultural distance in a global peer-to-peer platform market
- Stacked economization: a research program for the study of platforms
- Social Structure and Exchange: Self-confirming Dynamics in Hollywood
- Understanding super‐partnerships in scientific collaboration: Evidence from the field of economics
- Dual anchors in the shadow of the future: how renewal expectations and relational history govern behavior in public contracts
- Bad timing: mass-participatory asset bubbles as a mechanism of predatory inclusion
- Knowledge transfer in a tourism destination: the effects of a network structure
- Rethinking embeddedness: a review and research agenda
- Managing the Yin and Yang of family capital: a study of Chinese immigrant entrepreneurs
- Epidemic effects in the diffusion of emerging digital technologies: evidence from artificial intelligence adoption
- Higher-order interactions shape collective human behaviour
- Alliance portfolios and firm performance: A study of value creation and appropriation in the U.S. software industry
- Orchestrating resources with suppliers for product innovation
- Applying social network analysis in economic geography: framing some key analytic issues
- Preparing supply chain for the next disruption beyond COVID-19: managerial antecedents of supply chain resilience
- Network Forms of Organization
- Network organizations of general practitioners: antecedents of formation and consequences of participation. [europepmc]
- Emotions as infectious diseases in a large social network: the SISa model. [europepmc]
- The 1% rule in four digital health social networks: an observational study. [europepmc]
- Predicting Positive and Negative Relationships in Large Social Networks. [europepmc]
- Organizing product innovation: hierarchy, market or triple-helix networks? [europepmc]
- Trust or robustness? An ecological approach to the study of auction and bilateral markets. [europepmc]
- A Study Examining the Influence of Proximity to Nurse Education Resources on Quality of Care Outcomes in Nursing Homes. [europepmc]
- Analysing the sensitivity of nestedness detection methods. [europepmc]
- Analyzing the coevolution of interorganizational networks and organizational performance: Automakers' production networks in Japan. [europepmc]
- Resiliency of Mutualistic Supplier-Manufacturer Networks. [europepmc]
- Ethical Leadership and Knowledge Hiding: A Moderated Mediation Model of Relational Social Capital, and Instrumental Thinking. [europepmc]
- Providers' Initial Trust on an Organization-Sponsored Sharing Platform: The Framing of Coworker Collaborative Consumption. [europepmc]
- Advances in the agent-based modeling of economic and social behavior. [europepmc]
- Racialized minorities, trust, and crisis: Muslim-American nonprofits, their leadership and government relations during COVID-19. [europepmc]
- Charting new courses to enter foreign markets: Conceptualization, theoretical framework, and research directions on non-traditional entry modes. [europepmc]
- Self-Efficacy Mechanism in Farm Tourism Microentrepreneurship. [europepmc]
- The effect of blind box product uncertainty on consumers' purchase intention: The mediating role of perceived value and the moderating role of purchase intention. [europepmc]
- Ecosystem social responsibility in international digital commerce. [europepmc]
- Entrepreneurial networks, geographical proximity, and their relationship to firm growth: a study of 241 small high-tech firms. [europepmc]
- Disruption of international trade and its propagation through firm-level domestic supply chains: A case of Japan. [europepmc]
- Geographical peer effect in serial mergers and acquisitions: The influence of social learning and director network. [europepmc]
- The Job Embeddedness Scale: A Test of Its Reliability and Validity in Chinese Perioperative Settings. [europepmc]
- Counterspaces as a Site of Network Formation within Academia. [europepmc]
- Internet use and livelihood risk perception: exploring the dynamic relationship and moderating factors between information dissemination and individual perception. [europepmc]
- Due Diligence in International Alliances: Performance Outcomes and the Moderating Effect of Geographic Distance and Partner-Specific Experience. [europepmc]
Related