| Academy of Management Best Paper Proceedings
When Does the Glue of Social Ties Dissolve? Syndication Ties and Performance Cues in Withdrawals from Venture Capital Syndicates, 1985-2009
The present study integrates the economic and social perspectives on the stability of collaboration by exploring how performance cues interact with interorganizational embeddedness in affecting firms' withdrawals from venture capital coinvestment syndicates. It finds that higher embeddedness decreases the probability of withdrawal, especially in the face of negative general performance cues; however, the effect disappears in cases of negative collaboration-specific cues. The findings demonstrate the limits to the power of embeddedness to increase the stability of interorganizational collaboration.
Keywords: Social and Collaborative Networks;