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The complexity of the business network context and its effect on subsidiary relational (over-) embeddedness

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  • Nell, Phillip C.
  • Andersson, Ulf

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.

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  • Nell, Phillip C. & Andersson, Ulf, 2012. "The complexity of the business network context and its effect on subsidiary relational (over-) embeddedness," International Business Review, Elsevier, vol. 21(6), pages 1087-1098.
    • Handle: RePEc:eee:iburev:v:21:y:2012:i:6:p:1087-1098
    DOI: 10.1016/j.ibusrev.2011.12.002
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    12. Suma Athreye & Georgios Batsakis & Satwinder Singh, 2013. "Subsidiary Embeddedness is a Strategic Choice: Complementarity and the factors associated with different types of embeddedness," DRUID Working Papers 13-05, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
    13. Colakoglu, Saba & Yamao, Sachiko & Lepak, David P., 2014. "Knowledge creation capability in MNC subsidiaries: Examining the roles of global and local knowledge inflows and subsidiary knowledge stocks," International Business Review, Elsevier, vol. 23(1), pages 91-101.
    14. Georgios Batsakis, 2016. "Host Location Knowledge Sourcing And Subsidiary Innovative Performance — Examining The Moderating Role Of Alternative Sources Of Knowledge And Ipr Distance," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 20(06), pages 1-28, August.
    15. Ratajczak-Mrozek Milena, 2017. "Interorganizational Network Embeddedness and Performance of Companies Active on Foreign Markets," Journal of Management and Business Administration. Central Europe, Sciendo, vol. 25(4), pages 144-157, December.
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    19. Sheng, Margaret L., 2019. "Foreign tacit knowledge and a capabilities perspective on MNEs’ product innovativeness: Examining source-recipient knowledge absorption platforms," International Journal of Information Management, Elsevier, vol. 44(C), pages 154-163.

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