✦ LIBER ✦

Redundant governance structures: an analysis of structural and relational embeddedness in the steel and semiconductor industries

✍ Scribed by Tim Rowley; Dean Behrens; David Krackhardt

Publisher: John Wiley and Sons
Year: 2000
Tongue: English
Weight: 118 KB
Volume: 21
Category: Article
ISSN: 0143-2095
DOI: 10.1002/(sici)1097-0266(200003)21:3<369::aid-smj93>3.0.co;2-m

No coin nor oath required. For personal study only.

✦ Synopsis

Network researchers have argued that both relational embeddedness-characteristics of relationships-and structural embeddedness-characteristics of the relational structureinfluence firm behavior and performance. Using strategic alliance networks in the semiconductor and steel industries, we build on past embeddedness research by examining the interaction of these factors. We argue that the roles relational and structural embeddedness play in firm performance can only be understood with reference to the other. Moreover, we argue that the influence of these factors on firm performance is contingent on industry context. More specifically, our empirical analysis suggests that strong ties in a highly interconnected strategic alliance network negatively impact firm performance. This network configuration is especially suboptimal for firms in the semiconductor industry. Furthermore, strong and weak ties are positively related to firm performance in the steel and semiconductor industries, respectively.

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