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

Phillip C. Nell, Ulf Andersson

    Research output: Working paperResearch


    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 versus strong ties.
    Original languageEnglish
    Place of PublicationFrederiksberg
    PublisherCenter for Strategic Management and Globalization
    Number of pages36
    Publication statusPublished - 2011


    • Business networks
    • Subsidiary relational embeddedness
    • Environmental complexity
    • Network context

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