Abstract
This paper expands on a recently developed concept of a 'multiplex triad' and examines how such triad's embeddedness within the broader social context affects its closure. Specifically, we explore the role of prior collaborations between customers on the probability that one customer (referrer) recommends a supplier to another customer (referee) and that this supplier forms ties with another supplier already serving the referee. This will result in the closure of a multiplex triad involving the referee and these two suppliers. We predict that the number of referrer-referee joint ventures has positive effect on this dynamic, while the number of their non joint venture alliances has U-shaped effect, which in turn is negatively moderated by the strength of relationships between the referrer and its supplier.
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