Relational Embeddedness Research Articles

Complexity analysis about formation mechanism of residents’ value co-creation behavior in tourism communities: Based on the social embeddedness perspective

The interactive behavior between residents and tourists will directly affect tourists' consumption experience and tourism value perception, but few researchers pay attention to residents' value co-creation behavior. Based on the social embeddedness perspective, this paper constructs a theoretical model of value co-creation behavior driven by demographics, individual factors, and social embeddedness factors, using the fuzzy set Qualitative Comparative Analysis (fsQCA). The results showed that 25 pathways were found to promote residents' value co-creation behavior (RVCB), among which attitude towards the behavior, place attachment, subjective norms, and relational embeddedness were necessary conditions. Only one condition cannot drive residents to form value co-creation behavior. The factors influencing residents’ value co-creation behavior were complex and heterogeneous. Ultimately, this work expanded the research on value co-creation behavior and had an essential practical guide for the sustainable development of tourism destinations.

Identity-based subgroups and information exchange in adversarial policy networks

AbstractWhile information exchange is essential in the policy process, little is known about how divergent subgroups filter actors’ technical and political information exchange, blocking learning processes. Guided by social identity, group entitativity, and self-categorisation theories, we introduce the concept and measurement of identity-based subgroups referring to informal clusters shaped by the self-referent perception of similarities among actors. The identity-based subgroup is recognised as a precursor for coalition building in a policy subsystem but received inadequate attention in the research on Advocacy Coalition Framework. We examine how divergent identity-based subgroups moderate the links between relational embeddedness and technical/political information exchanges in an adversarial fracking policy network in New York. Our quadratic assignment procedure multiple regression indicated that, despite trust, policy actors from different identity-based subgroups are less likely to share technical and political information in the network. When two actors’ identity-based subgroups are different, competition is more likely associated with lower technical information exchange in the network. These findings extend research on information exchange in adversarial policy subsystems.

Developing relational embeddedness of logistics service provider to enhance supply chain performance in transitive triads

PurposeThe study seeks to explore the effect of socialization mechanisms on relational embeddedness of logistics service providers (LSP), and relational performance of dyads, and finally their resulting effect on the supply chain performance in transitive triads.Design/methodology/approachTo elaborate on the major constructs of the study, the researchers use the theoretical lens specifically provided by social capital theory (SCT), and relational view (RV). Consequently, the researchers use SCT to examine the role of the socialization process, used by the supplier and customer, to develop relational embeddedness of logistics service providers in triads. Next, the researchers use the RV, complemented by the underpinnings of supply chain practice view (SCPV) to elaborate on the relational performance of dyads and supply chain performance. The study uses partial least squares structural equation modeling (PLS-SEM) to estimate the higher component model (HCM) and test the research hypotheses.FindingsThe results obtained from a sample of 350 transitive triads suggest that relational embeddedness of LSPs is only shaped by the mechanisms of formal socialization, developed by the supplier and customer. Interestingly, informal socialization appears to be insignificant for this process. The results indicate that relational embeddedness of logistics service providers has a positive effect on the relational performance of three dyads, which in turn, has a positive effect on the supply chain performance in transitive triads.Research limitations/implicationsOne of the intriguing avenues of future research is to investigate the dynamics of supply chains. It would be also worthwhile to make use of the specificity of transitive triads, formed by the supplier, customer and LSP, to explore whether and under which circumstances (e.g. reciprocity, symmetry) the strong ties encourage the transfer and integration of knowledge among actors, and the weak ties accelerate the search for information. In connection with that, the other interesting research avenue would be to investigate the information benefits derived from the nonredundant triads.Originality/valueAlthough there is a number of recent studies that show empirical evidence for developing relational embeddedness in transitive triads, to date, little research interest has been paid to how relational embeddedness of LSPs is shaped within the supply chain structures, and how it finally affects the supply chain performance.

Friends, foes, or “frenemies”: Intercountry relations and cross‐border acquisitions

AbstractResearch SummaryWe draw on the political institutions approach and relational embeddedness perspective to advance a relational theory of policy risk. We argue that policy risk negatively affects acquisition completion, but the strength of the effect is dependent on home‐host country relations. Home‐host country relations underpin host governments' motivation to commit to policies and influence foreign acquirers' perceptions of the credibility of such commitments. Using longitudinal event data on intercountry interactions, we measure the valence and strength of home‐host country relations and examine the relationship between policy risk and cross‐border acquisition (CBA) completion under cooperative, conflictive, and ambivalent relations. In a sample of 26,124 CBAs, we find that the relationship is negative and strong under conflictive relations, weaker under cooperative relations, and weakest under ambivalent relations.Managerial SummaryWe examine whether acquirers can use intercountry relations to infer and predict host governments' credibility of commitment to policies and evaluate the risk of arbitrary or opportunistic policy changes. Results show that policy risk decreases the likelihood of CBA completion, but the effect depends on home‐host country relations. The negative effect of policy risk is strongest under conflictive intercountry relations, weaker under cooperative relations, and weakest under ambivalent relations. Executives' evaluations of home‐host country relations in high policy risk environments can help assess the risk associated with completing CBAs and develop appropriate strategies to address potential issues.

Building dynamic capabilities of small and medium-sized enterprises through relational embeddedness: evidence from China

Building dynamic capabilities of small and medium-sized enterprises through relational embeddedness: evidence from China

Entrepreneurial Continuance & COVID-19: The Role of Relational Embeddedness & Institutional Support

Building on the Theory of Planned Behavior (TPB), this paper investigates how relational embeddedness and Perceived External Institutional Support (PEIS) influence entrepreneurs’ intention to keep ventures afloat during the COVID-19 pandemic (i.e., Intention for Entrepreneurial Continuance or IEC). We surveyed 295 entrepreneurs of small business owners in China in December 2020 and analyzed the data using structural equation modelling. Relational embeddedness and PEIS both significantly influenced IEC through the mediating effects of the three TPB determinants (attitude, subjective norms and perceived behavioral control). While subjective norms did not directly influence intention, they could still affect intention by influencing attitude. Entrepreneurs’ post-pandemic recovery prospects during the pandemic also did not moderate the three TPB determinants or IEC. The study contributes to research on entrepreneurial resilience by providing a more nuanced perspective of how entrepreneurs make decisions to continue or exit their ventures during periods of external shock and disruption. Besides the TPB factors being important in ensuring that small businesses continue to survive, this paper also adds to research on social capital by demonstrating the strong predictive power of relational embeddedness, which significantly determined entrepreneurs’ continuance intention through the TPB mediators. It also provides evidence that institutional support serves as a salient antecedent of the TPB determinants and continuance intention. Moreover, it finds that internal migrant entrepreneurs face greater entrepreneurial barriers to keep their businesses going during

Cognitive and Structural Embeddedness of the Supply Base: Effects on Buyer Profitability

Recent supply chain operations studies have made strides in understanding the structural and relational embeddedness of firms in the supply base and their impact on the performance of the focal buyer. Yet, the theory on cognitive and cultural embeddedness remains unclear. Understandably, cognitive and cultural embeddedness of firms are less observable. Indeed, cognitive and cultural embeddedness explains the deep motivations of firms’ actions - why firms do certain things and why they pursue certain kinds of relationships in the first place. This study takes an incremental step in this direction. We propose and empirically examine the relationships between shared cognition among firms in a supply base and the financial performance of the focal buying firm. Through analysis of a sample of 240 ego-networks of buying firms, our overall theoretical argument is supported, and we find a nuanced understanding of how such network-shared cognition functions. More specifically, in a supply base, cognition shared among a buyer and suppliers is positively associated with the buyer’s financial performance (ROA). However, when the network becomes cognitively homogeneous, it has a detrimental effect on the buyer’s financial performance, revealing the “dark side” of cognitive embeddedness. We also identified the moderating effect of network interconnectedness, which allows the buyer to benefit from suppliers’ network shared cognition. That is, only in the presence of a very interconnected network, the potential benefits from supplier-supplier shared cognition will materialize for the buyer; otherwise, its potential remains dormant.

Smart Disclosure: An Enabler for Multinationals to Promote Suppliers’ Human Rights Commitments

Human rights violations remain an urgent global grand challenge, and multinational enterprises (MNEs) face increasing pressure to address them in their global supply chains. Drawing insights from the information as regulation literature, we propose that MNEs’ smart disclosure (i.e., disclosure enabled by smart technologies with enhanced reprogrammability, accessibility, interactivity, and transferability) of supply chain information promotes suppliers’ human rights commitments. We theorize that through smart disclosure, MNEs can enlist all relevant stakeholders to influence and support suppliers to solve human rights issues through a “crowdsourcing” approach. Furthermore, we argue that the information conditions in global supply chains serve as important boundary conditions. Specifically, the relationship between MNEs’ smart disclosure and suppliers’ human rights commitments is weakened for suppliers with stronger relational embeddedness with MNEs (i.e., internal information condition). The relationship is also weakened for suppliers located in countries with greater institutional voids (i.e., external information condition).

Network Community, Institutional Development, and Firm Performance

Conventional wisdom in network research attributes superior firm performance to social connectedness. However, a high degree of connectedness is not necessarily beneficial if the connections are not dependable. Drawing on a relational embeddedness perspective, this study examines the effect of network connections through communities on firm performance. Firms differ in the extent to which they are affiliated across overlapping network communities. Our goal is to investigate whether and how network community affiliations affect firm performance. Leveraging recent advances in community detection technology, our analyses of 15,767 firm-year observations from the Chinese venture capital industry suggest that community-affiliated firms are likely to perform better than non-community-affiliated firms, especially in regions with less developed institutions. Importantly, we find an inverted U-shaped relationship indicating that firm performance improves with community affiliations up to a certain threshold, after which the costs of multiple affiliations outweigh the benefits. The more developed the local institutions where firms operate, the earlier the turning point is reached. By integrating social network and institutional perspectives, this study highlights not only the promises but also the limits of community affiliations in affecting firm performance.

When Does Competitive Learning Occur? The Impact of Alliance Network Embeddedness on Technological Invasion

AbstractFirms participate in an alliance network to collaborate for specific goals and common values; however, the network situation and the interaction between partnering firms enable them to appropriate their partners’ proprietary knowledge and adopt competitive actions. Little is known about whether and when the focal firm would invade its partner's technological domains in alliance networks. We examined how relational embeddedness and positional embeddedness influence the focal firm's technological invasion behaviour against its partner, and the moderating role of relative alliance experience. Although previous studies have emphasized that a central position would enhance firms’ competitive aggression, we argue that this central position imposes more constraints on firms’ competitive behaviour. The empirical results show a U‐shaped relationship between relational embeddedness and technological invasion, while relative centrality negatively affects technological invasion behaviour and negatively moderates the U‐shaped relationship. Furthermore, the results indicate that relative alliance experience attenuates the U‐shaped relationship between relational embeddedness and technological invasion, while it enhances the negative effect of relative centrality on technological invasion. These findings provide new insights and perspectives to study the coopetition phenomenon in alliance networks.

Who stewards whom? A paradox spectrum of human–nature relationships of Estonian dacha gardeners

This article contributes to the understanding of the complexity of human-nature relationships. Through hermeneutic analysis of more than 60 semi-structured in-depth interviews (2019-2021), I identify five prevalent human-nature relationship models within the Food Self-Provisioning (FSP) practice in Eastern Estonia (‘master', ‘user' and ‘steward of nature' as well as ‘partner with’ and ‘participant in nature'). As an ambiguous model, the ‘stewardship of nature’ merits my particular attention when exploring how gardeners perceive, relate to and act upon nature in general and their own gardening practice in particular.Using a relational sociological approach, I locate the observed relationship models within the so-called ‘space of social relationships with nature’ (see Eversberg et al. 2022 in this Special Issue) which allows me to capture the various ways in which humans mentally and practically relate to nature. The analysis reveals seemingly contrary yet concurrent manifestations of human-nature relationships that can only be explained by exploring their embeddedness in both social power relations and societal nature relations that constitute the individually observed human-nature relationships. Furthermore, I demonstrate how ‘immediate’ engagement with nature results in rather caring and partner-like relationships whereas ‘abstract’ and alienated experiences often feature instrumental logic with implicit or explicit hierarchy.

Forming post-COVID supply chains: does supply chain managers' social network affect resilience?

PurposeRethinking how to build resilience in supply chains is once again highlighted by COVID-19. Research on supply chain resilience has established flexibility as a firm-level antecedent that contributes to supply chain resilience. However, the authors know little about how supply chain flexibility is developed within a firm. Drawing on social capital theory, the authors claim that the way supply chain managers are embedded in their social networks plays a critical role in developing this antecedent. Specifically, the authors hypothesize that supply chain managers' structural and relational embeddedness in their reference network, comprised of individuals from whom they seek advice, is instrumental to developing supply chain flexibility, which subsequently enhances the firm's supply chain resilience.Design/methodology/approachSurvey data collected from 485 manufacturing firms in Australia and Hayes and Preacher's (2014) parallel multiple mediator model were employed to empirically test the hypotheses.FindingsThe findings of the study establish that supply chain managers' structural and relational embeddedness in their reference network indeed have implications for developing supply chain resilience. Furthermore, the mediator through which managers' social embeddedness influences supply chain resilience is identified in the current study.Originality/valueThe study contributes to the extant literature on supply chain resilience, investigating the role that supply chain managers' social capital play in developing the resilience of their firm.

Referrals among VCs and the length of due diligence: The effect of relational embeddedness

Venture capital is a socially embedded business where VCs refer investment opportunities to one another. While we know that these referrals increase the chances of a start-up passing the initial screening process, we investigate to what extent the intensity of relational embeddedness between referrer and referee relates to the length of the due diligence process of the start-up being referred. Extending information processing theory by social network theory arguments, we argue that referees have access to more and better information during the due diligence as relational embeddedness increases. This will lead to a more in-depth and rigorous evaluation. Moreover, the referee will be subject to social obligations to invest additional resources in the assessment, the more so, the stronger the relational embeddedness. Both factors lead to a prolongation of the due diligence process. Furthermore, we find that the individual investment manager's current performance and experience moderate this relationship.

Research on the influence of network embeddedness on innovation performance: Evidence from China's listed firms

Network embeddedness is an essential determinant of enterprise innovation, but the mechanism of its impact on innovation performance remains unclear. Based on resource dependence theory, this study analyzes the influence of structural embeddedness and relational embeddedness on innovation performance and introduces technological diversification and state ownership to discuss the mediation and moderation mechanism. Using the patent and financial data of China's listed companies from 2007 to 2016, we tested the theoretical model by panel regression analysis. The results show that there is an inverted U-shaped relationship between relational embeddedness and innovation performance and structural embeddedness exerts a significant positive effect on innovation performance. Technology diversification plays a mediating role between relational embeddedness, structural embeddedness and innovation performance. Compared with nonstate-owned companies, state-owned enterprises are less dependent on network resources. Although the inverted U-shaped relationship between network embedding and innovation performance is weaker, the positive influence of structural embeddedness on innovation performance is stronger.

The Role of Relational Embeddedness in Enhancing Absorptive Capacity and Relational Performance of Internationalized SMEs: Evidence From Mainland China.

The social network in the organizational learning process is a critical knowledge source to realize superior performance. The purpose of this study is to examine the relationship between relational memory, relational embeddedness, and absorptive capacity, and their impact on the relational performance of small and middle enterprises (SMEs). This study empirically verifies the research framework from 223 Chinese internationalized SMEs. The results confirm previous studies that indicate positive correlations among relational embeddedness, relational memory, and absorptive capacity. The results also indicate that relational embeddedness and relational memory have positive effects on relational performance. The findings show that relational memory plays a mediating role in the relationship between relational embeddedness, absorptive capacity, and relational performance.

The Curvilinear Relationships Between Relational Embeddedness and Dynamic Capabilities: The Mediating Effect of Ambidextrous Learning.

Dynamic capabilities are crucial to the survival and development of enterprises in the BOP (Base/Bottom of the Pyramid, hereinafter BOP) market. The research focuses on the double-edged sword impact of relational embeddedness on dynamic capabilities via ambidextrous learning, that is moderate embeddedness facilitates dynamic capabilities while overembeddedness inhibits them. Furthermore, this study investigates whether human capital moderates the relationships between relational embeddedness and ambidextrous learning. Selecting 264 samples for empirical research, firstly, the results show that the relational embeddedness in the BOP cooperation network has an inverted U-shaped influence on ambidextrous learning and dynamic capabilities. Secondly, exploratory learning and exploitative learning play a mediating role in relational embeddedness and dynamic capabilities. Thirdly, prior experience plays a positive moderating role in relational embeddedness and exploitative learning. The conclusions facilitate understanding the antecedents of dynamic capabilities and the black box of “embeddedness paradox,” and provide empirical evidence for adjusting the human capital of enterprises, enhancing the exploratory learning capability and exploitative learning capability, and coping with the overembeddedness effects.

Evaluation of Product Innovation Practice of Chinese Internet Companies Based on DANP Model

Purpose. Internet companies have played an important supporting role in China’s economic growth and social resource allocation in the advent of an exogenous shock: the coronavirus disease (COVID-19) pandemic. This is owing to their digital, networked, and platform-based characteristics amidst an environment of intensified competition and stagnation of innovation activities due to the pandemic shock. Thus, based on the social network theory and resource-based theory, this study combines the DANP model with corporate innovation to build a product innovation performance evaluation framework for Chinese Internet companies. From a value network perspective, this study considers the different performance aspects of network embeddedness, knowledge management, environmental triggering, and organizational effectiveness. Methodology. The performance of Internet enterprise product innovation may be considered a complex multicriteria decision-making problem. This study used the decision-making trial and evaluation laboratory-based analytic network algorithms to analyze the complex influencing relationship among the factors and calculate their weights. Preference ranking organization method for enrichment evaluation was used for selecting the final solution of multiobjective optimization. Three representative and influential Internet companies in China were selected for empirical analysis and practical evaluation, to find the gap between product innovation performance and expectations and present development suggestions. Findings. The study results reveal that relational embeddedness, knowledge sharing degree, cognitive embeddedness, structural embeddedness, knowledge absorptive capacity, and corporate strategic orientation are important to Chinese Internet enterprise product innovation performance. Practical Implications. This Internet enterprise product innovation performance evaluation framework can be used by Internet business operators to assess product innovation performance and identify areas of improvement. This study provides new product innovation ideas for Chinese Internet companies during an epidemic situation. Originality/Value. This study contributes to the present body of knowledge by using the DANP model to conduct empirical analysis, considering value network-related performance aspects to evaluate the product innovation performance of Internet enterprise in China.

Cultural Commodification and Ethical Transition of Tourism Development: A Case in Osing Community, Indonesia

Tourism development in many cases induces various socio-cultural consequences at the local community level. In Banyuwangi, local government commoditizes traditional rites of the Osing community for tourism purposes. Framed by Granovetter’s social embeddedness and Bentham’s utilitarianism, this study investigated the socio-cultural consequences of tourism development and portrayed how it influenced ethics in tourism activities of the Osing community. Following qualitative research with interviews and observation, the results suggested that Osing economic activities reflected cultural commodification. The cultural commodification expanded social networks in the relational and structural embeddedness that were operated by trust among the actors. While relational embeddedness was recognized on the personal relation, structural embeddedness was identified among government institutions, private sectors, Pokdarwis, and Osing community. Although the cultural commodification was identified, the ethical economic activities remained on collective values, or so called as collective utilitarianisms. The cultural commodification derived to widen social networks, yet the communal ethical economy remained the same. The study proposed community members to construct economic activities based on local values that were utilized to strengthen their socio-cultural identity. The study allowed better understanding of sociological consequences as undergirding framework in policy making and business cooperation.

How does a partner's acquisition affect the value of the firm's alliance with that partner?

AbstractResearch SummaryHow does an acquisition initiated by a firm's alliance partner affect the value that the firm can create and capture from its alliance with that partner? We conjecture that the similarity between the businesses of the firm and its partner's acquisition target restricts the firm's ability to create and capture value from its alliance, whereas the complementarity between their businesses enhances the firm's gain from its alliance. We further expect relational embeddedness between the firm and its partner to mitigate the competitive tension associated with similarity while reinforcing synergies ascribed to complementarity. Our analysis of 361 firms and their 590 alliances with 91 partners that acquired 164 targets during 2000–2016 supports our predictions about business similarity and complementarity but refutes those concerning relational embeddedness.Managerial SummaryWhen a firm's partner engages in an acquisition, this can impact the value of their alliance. We show that when the acquired target competes with the firm, the value of the alliance declines. In turn, when the target and firm's businesses are complementary, the alliance creates more value. We also find that when the firm and the partner had extensive experience working together, this reinforces the negative effect of business similarity with the target, probably because of perceived betrayal and knowledge leakage. Joint experience also reduces the value of complementarity, likely due to the difficulty of modifying collaborative practices. We encourage managers to scrutinize their partners' corporate initiatives, reduce commitment when the partner acquires a competing target, and leverage new complementarities following the partner's acquisitions.

Exploring the Relational Embeddedness of Higher Educational Students During Hungarian Emergency Remote Teaching

In 2020, the researchers started studying with utmost haste the effect of the COVID-19 pandemic on teaching. The name of the form of teaching that came to be is disputed, neither the phrase of distance teaching nor digital teaching are professional enough. We use the term of emergency remote teaching (henceforth ERT), which appears in the scientific literature. This refers to the periodical diversion from the normal teaching, and to the emergency distancing in the teaching processes as well. In the present study, we focus on the alteration of student relationships and its correlation with higher educational efficiency because we see the reduction of student relationships as a discriminatory factor of this period. According to the previous results, the institutional embeddedness of students to be an indispensable condition of educational efficiency. In our study, we compared the states of the student relationships before and during the ERT. We hypothesise that the reduction of institutional relations caused by the epidemic is the cause for the student inefficiency, dissatisfaction, and distrust. Our questionnaire was filled by 677 students (172 males, 505 females) from 30 Hungarian higher education institutes altogether. Our results raise attention to the indispensable roles of instructors which are not in close relation to teaching. Furthermore, the results point that the weakening in the student relationships is in correlation with student persistence, student engagement, and institutional trust and satisfaction. According to the study, the reduction of student embeddedness had a negative impact on performance. A further conclusion is that all of this should be taken into consideration when working out a concept for a virtual university.