Abstract
ABSTRACTElaborating on the concept of embeddedness, this article proposes the notion of relational habitat, which denotes the relatively durable constellation of ongoing, specialized relations developed and sustained by a firm. This constellation is basically a protective social device, which by sufficiently stabilizing and simplifying the immediate operational environment of the embedded firm considerably relaxes the constraints imposed on its action capacity. The core argument is that by expanding the control of the firm beyond its organizational borders, the relational habitat enhances the ability of the firm to successfully pursue the adopted business plans and secure the intended outcomes. The notion is proposed to provide the analytical specification needed for understanding firm behavior as an emergent outcome of the enabling as well as constraining relational context that embeds the firm.
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