Lecture 2 Flashcards
1
Q
embeddedness
A
social embeddedness is defined as the degree to which commercial transactions take place through social relations
2
Q
why does embeddedness matter?
A
- research shows that social structure affects outcomes
- organizations are never alone but in social structures of other organizations; always embedded in markets
- economic transactions are always to some extent social
3
Q
the paradox of embeddedness
A
- embedded actors satisfice instead of maximize
- embeddedness creates economic opportunities that are difficult to replicate via markets, contracts or vertical integration
- trust as the primary governance structure
- ‘too embedded’ can also have negative effects
4
Q
Uzzi, 1997
A
- first order network (made up of an actor’s ties to its exchange partners)
- second order network (made up of an actor’s exchange partners’ ties to their exchange partners)
- arm length ties: weak ties, no connection, via via
- integrated network: not under-embedded nor over-embedded, new information coming in from weak ties, not fragmented
5
Q
Dyer & Nobeoka
A
- created a high-performance sharing network in order to better their performance
- quicker learning, strong network identity, knowledge as property of network, dynamic learning capability
- network superior to a firm if it can create a strong identity and coordinating rules
6
Q
Cattani & Ferriani: core periphery network structure
A
characterized by a cohesive subgroup of core actors and set of peripheral actors that are loosely connected to the core
7
Q
Main findings Cattani & Ferriani
A
- individuals with intermediate position between core and periphery are in a favorable position to achieve creative results
- if individuals do not have intermediate position, they can have the same benefits by participating in a balanced team that combine core and peripheral