Working With Unfamiliar Partners: Relational Embeddedness And Partner Selection In Inter-Firm Collaborations
AbstractWhile one stream of research in partner selection has emphasized stability in a firm’s social network, another stream has emphasized the need to expand a firm’s network. In order to reconcile these two perspectives, we explore transaction, partner and macro conditions that lead firms to work with unfamiliar partners. Using a unique hand-collected dataset, results from the formation of private equity investment syndicates demonstrate that firms are more likely to select unfamiliar partners for lower levels of primary and behavioral uncertainty and higher levels of competition. Our findings provide insights in conditions that lead firms to expand their social network.
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Bibliographic InfoPaper provided by Ghent University, Faculty of Economics and Business Administration in its series Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium with number 06/371.
Length: 41 pages
Date of creation: Mar 2006
Date of revision:
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-06-10 (All new papers)
- NEP-BEC-2006-06-10 (Business Economics)
- NEP-COM-2006-06-10 (Industrial Competition)
- NEP-CSE-2006-06-10 (Economics of Strategic Management)
- NEP-ENT-2006-06-10 (Entrepreneurship)
- NEP-NET-2006-06-10 (Network Economics)
- NEP-SOC-2006-06-10 (Social Norms & Social Capital)
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