Partner selection decisions in interfirm collaborations: The paradox of relational embeddedness
Publication type
Journal article with impact factorPublication Year
2010Journal
Journal of Management StudiesPublication Volume
47Publication Issue
6Publication Begin page
995Publication End page
1019
Metadata
Show full item recordAbstract
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.Knowledge Domain/Industry
Accounting & Financeae974a485f413a2113503eed53cd6c53
10.1111/j.1467-6486.2009.00897.x