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The Embeddedness of Networks: Institutions, Structural Holes, and Innovativeness in the Fuel Cell Industry

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  • Gurneeta Vasudeva

    (Carlson School of Management, University of Minnesota, Minneapolis, Minnesota 55455)

  • Akbar Zaheer

    (Carlson School of Management, University of Minnesota, Minneapolis, Minnesota 55455)

  • Exequiel Hernandez

    (Olin Business School, Washington University in St. Louis, St. Louis, Missouri 63130)

Abstract

Plentiful research suggests that embeddedness in alliance networks influences firms’ innovativeness. This research, however, has mostly overlooked the fact that interorganizational ties are themselves embedded within larger institutional contexts that can shape the effects of networks on organizational outcomes. We address this gap in the literature by arguing that national institutions affect the extent to which specific network positions, such as brokerage, influence innovation. We explore this idea in the context of corporatism, which fosters an institutional logic of collaboration that influences the broker’s ability to manage its partnerships and recombine the knowledge residing in its network as well as the extent of knowledge flows among network participants. We argue that differences in institutional logics lead brokerage positions to exert different effects on firm innovativeness. We propose that the firm spanning structural holes obtains the greatest innovation benefits when the firm (the broker) or its alliance partners are based in highly corporatist countries, or under certain combinations of broker and partner corporatism. We find support for these ideas through a longitudinal study of cross-border fuel cell technology alliance networks involving 109 firms from nine countries between 1981 and 2001.

Suggested Citation

  • Gurneeta Vasudeva & Akbar Zaheer & Exequiel Hernandez, 2013. "The Embeddedness of Networks: Institutions, Structural Holes, and Innovativeness in the Fuel Cell Industry," Organization Science, INFORMS, vol. 24(3), pages 645-663, June.
  • Handle: RePEc:inm:ororsc:v:24:y:2013:i:3:p:645-663
    DOI: 10.1287/orsc.1120.0780
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