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The role of embeddedness in the evolution of business networks

Author

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  • Halinen, Aino
  • Törnroos, Jan-Åke

Abstract

This article deals with the concept of embeddedness and its role in understanding the evolution of business networks. Networks are viewed as structures of inter-firm relationships that emerge and evolve through continuous interactive processes. Embeddedness refers to companies' relations with, and dependence on, various types of network. Six types of embeddedness are distinguished and the vertical and horizontal dimensions of the phenomenon are analysed. The concept of the actor's representational role is introduced to illustrate how embeddedness functions as a force for change in the evolution of networks. Cases from a variety of business contexts are used to describe the aspects of embeddedness, and their impact on the process of network evolution. In conclusion some implications for research and practice are presented.

Suggested Citation

  • Halinen, Aino & Törnroos, Jan-Åke, 1998. "The role of embeddedness in the evolution of business networks," Scandinavian Journal of Management, Elsevier, vol. 14(3), pages 187-205, March.
    • Handle: RePEc:eee:scaman:v:14:y:1998:i:3:p:187-205
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