Abstract
Prior research suggests that relational and structural embeddedness (i.e., strength of relationships and strength of the relational structures) facilitate alliance formation and persistence. This study examines the opposite case, namely, the inhibition of these dynamics by network embeddedness. By considering network embeddedness as a driver of partner choice sets consisting of multiple embedded options (i.e., potential partners), I propose that firm's recognition of multiple options from the partner choice sets increases uncertainties about the options, inhibiting alliance formation and persistence with these options. These ideas are supported by empirical tests of data on codeshare alliances in global airline industry.
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