Publications
Publications
- February 2011
- Academy of Management Journal
When the Social Structure Overshadows Competitive Incentives: The Effects of Network Embeddedness on Joint Venture Dissolution
By: Francisco Polidoro Jr., Gautam Ahuja and Will Mitchell
Abstract
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.
Keywords
Social Structure; Business Enterprises; Strategic Alliances (Business); Business Networks (Research); Competition; Joint Ventures; Alliances; Social and Collaborative Networks
Citation
Polidoro, Francisco, Jr., Gautam Ahuja, and Will Mitchell. "When the Social Structure Overshadows Competitive Incentives: The Effects of Network Embeddedness on Joint Venture Dissolution." Academy of Management Journal 54, no. 1 (February 2011): 203–223.