The Effect of Network Embeddedness on the Carbon Performance of Organizations

Abstract

This article explores the effect of network structure on the carbon performance of organizations in developing countries at ego network level. It is hypothesized that the alliance network structure affects the carbon performance of focal actors. We focus on alliances between organizations to reduce emissions under the Clean Development Mechanism, and propose that asymmetric partnership between ego and its counterparts affect the ego’s carbon performance positively. Common third party ties between carbon alliance members, however, moderate the negative side-effects of position asymmetry. Theoretical frameworks of embeddedness and social capital underscore improved understanding of these relationships.