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The Sources and Consequences of Embeddedness for the Economic Performance of Organizations: The Network Effect


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From the Abstract: Developing a formulation that specifies how embeddedness and network structure affect economic action

Results reveal that embeddedness is an exchange system with unique opportunities relative to markets and that firms organized in networks have higher survival chances than do firms which maintain arm's-length market relationships. The positive effect of embeddedness reaches a thresh- old, however, after which point the positive effect reverses itself

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