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The problem of embeddedness revisited: Collaboration and market types

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  • Andersen, Kristina Vaarst

Abstract

Embeddedness has been touted as a framework for knowledge exchange and innovation, and thus as an important precondition for high-level performance. Embeddedness of economic action in social relations improves access to resources, but over-embeddedness impedes performance. However, until now the association between embeddedness and performance in different markets has been neglected. This paper challenges the predominant view of embeddedness and over-embeddedness as absolute and mutually exclusive conditions. Through regression analyses of novel data from a project-based industry, the paper tests the association between embeddedness and economic performance in different markets, finding a positive association in the domestic market, but a negative association in foreign markets. This divergence in performance is caused in part by selection bias in the access to foreign markets, and in part by accumulation of localized knowledge.

Suggested Citation

  • Andersen, Kristina Vaarst, 2013. "The problem of embeddedness revisited: Collaboration and market types," Research Policy, Elsevier, vol. 42(1), pages 139-148.
  • Handle: RePEc:eee:respol:v:42:y:2013:i:1:p:139-148 DOI: 10.1016/j.respol.2012.05.005
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    Cited by:

    1. Lutter, Mark, 2013. "Is there a closure penalty? Cohesive network structures, diversity, and gender inequalities in career advancement," MPIfG Discussion Paper 13/9, Max Planck Institute for the Study of Societies.
    2. De Noni, Ivan & Ganzaroli, Andrea & Orsi, Luigi, 2017. "The impact of intra- and inter-regional knowledge collaboration and technological variety on the knowledge productivity of European regions," Technological Forecasting and Social Change, Elsevier, vol. 117(C), pages 108-118.
    3. repec:spr:scient:v:102:y:2015:i:1:d:10.1007_s11192-014-1311-x is not listed on IDEAS
    4. repec:spr:scient:v:111:y:2017:i:2:d:10.1007_s11192-017-2320-3 is not listed on IDEAS
    5. Liu, Xiaohui & Gao, Lan & Lu, Jiangyong & Lioliou, Eleni, 2016. "Environmental risks, localization and the overseas subsidiary performance of MNEs from an emerging economy," Journal of World Business, Elsevier, vol. 51(3), pages 356-368.

    More about this item

    Keywords

    Embeddedness; Knowledge transfer; Opportunity allocation;

    JEL classification:

    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation

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