Partner selection decisions in interfirm collaborations: The paradox of relational embeddedness
Meuleman, Miguel Lockett, Andy Manigart, Sophie Wright, Mike
Meuleman, Miguel
Lockett, Andy
Manigart, Sophie
Wright, Mike
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Publication Type
Journal article with impact factor
Editor
Supervisor
Publication Year
2010
Journal
Journal of Management Studies
Book
Publication Volume
47
Publication Issue
6
Publication Begin page
995
Publication End page
1019
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Abstract
By combining insights from relational network theory and agency theory we identify the boundary conditions to the embeddedness approach to partner selection decisions in interfirm collaborations. Employing a longitudinal dataset comprising the investment syndicates for the population of UK management buyouts between 1993 and 2003, we find that relational embeddedness is less important for selecting partners when agency risks are low, allowing firms to expand their networks. Furthermore, reputational capital may act as a partial substitute for relational embeddedness, again permitting firms to expand their networks. Our findings enhance understanding of the boundary conditions associated with the relational network approach to partner selections and network behaviour.
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Keywords
Corporate Finance, Mergers & Acquisitions