When the social structure overshadows competitive incentives: The effects of network embeddedness on joint venture dissolution

Published

Journal Article

The embeddedness of interfirm relationships in a social structure can engender order in new tie formation, but competitive incentives may undermine the order that firms seek to achieve and lead to tie dissolution. We examine how relational embeddedness (history of interactions), positional embeddedness (network centrality), and structural embeddedness (common partners) influence tie stability, focusing on unplanned joint venture dissolution. Prior work suggests that relational embeddedness facilitates alliance stability. This study shows that positional embeddedness does not promote stability, but structural embeddedness does help sustain alliances, particularly when partners have strong incentives to pursue self-interest at the expense of joint benefits. © Academy of Management Journal.

Full Text

Duke Authors

Cited Authors

  • Polidoro, F; Ahuja, G; Mitchell, W

Published Date

  • February 1, 2011

Published In

Volume / Issue

  • 54 / 1

Start / End Page

  • 203 - 223

International Standard Serial Number (ISSN)

  • 0001-4273

Digital Object Identifier (DOI)

  • 10.5465/amj.2011.59215088

Citation Source

  • Scopus