Embedding of a new business as a cumulative process of combining different but complementary types of projects: The case of a project-based firm

Abstract

Within the industrial network approach, new business formation is a cumulative process of relating the new business to the existing business network over time. This paper combines the literatures on industrial networks and projects (management) to explore the roles of two different types of (temporary) inter-organizational projects in the embedding process. The paper examines the embedding in a network of a new project-based firm that went from being a new entity to becoming capable of taking a stronger network position by using different types of projects as embedding tools. Embedding of the new firm in the business network required the combining of different but complementary types of projects to build a stronger network position. We find that (temporary) inter-organizational projects are tools for embedding the firm in a network of relationships. The inter-organizational projects can provide the firm with opportunities to both discover and develop not only its own resources but also the resources of others, leading it to change perceptions and principles on what resources are useful to access and who possesses those resources.