The Complexity of the Business Network Context and Its Effect on Subsidiary Relational (Over-) Embeddedness

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    Abstract

    Many studies have focused on the effects of MNC subsidiaries’ external relational embeddedness. Little attention has been given to its antecedents and especially to the potential effect that the business network context might have. We try to fill this gap and attempt to explain variation among subsidiaries’ degree of relational embeddedness. Our results show a strong and robust effect of the business network context – i.e. the network context in which the direct business relationships between the subsidiary and its partners are embedded – on the degree of relational embeddedness. However, contrary to previous literature, we find an inverted u-shaped relationship. We discuss our findings with regard to the issue of over-embeddedness and the literature on the strength of weak vs. strong ties.
    Original languageEnglish
    JournalInternational Business Review
    Volume21
    Issue number6
    Pages (from-to)1087-1098
    ISSN0969-5931
    DOIs
    Publication statusPublished - 2012

    Keywords

    • Business Networks
    • Environmental Complexity
    • Network Context
    • Subsidiary Relational Embeddedness

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