Redundant governance structures: an analysis of structural and relational embeddedness in the steel and semiconductor industries

Network researchers have argued that both relational embeddedness-characteristics of relationships-and structural embeddedness-characteristics of the relational structure-influence firm behavior and performance. Using strategic alliance networks in the semiconductor and steel industries, we build on...

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Bibliographic Details
Published in:Strategic management journal 2000-03, Vol.21 (3), p.369-386
Main Authors: Rowley, Tim, Behrens, Dean, Krackhardt, David
Format: Article
Language:English
Subjects:
Alliances
Comparative analysis
Competition
Competitive advantage
Construction materials industry
Cooperation
Corporate strategies
Density
Economic behaviour
Economic networks
Economic performance
Economic relations
Enterprises
Environmental technology
Influence
Joint ventures
Manufacturing
Metal industry
network embeddedness
Organizational structure
R&D
Research & development
Semiconductors
Social capital
Statistical analysis
Steel industry
Steels
strategic alliances
Strategic management
Studies
Tacit knowledge
Technological innovation
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Summary:Network researchers have argued that both relational embeddedness-characteristics of relationships-and structural embeddedness-characteristics of the relational structure-influence firm behavior and performance. Using strategic alliance networks in the semiconductor and steel industries, we build on past embeddedness research by examining the interaction of these factors. We argue that the roles relational and structural embeddedness play in firm performance can only be understood with reference to the other. Moreover, we argue that the influence of these factors on firm performance is contingent on industry context. More specifically, our empirical analysis suggests that strong ties in a highly interconnected strategic alliance network negatively impact firm performance. This network configuration is especially suboptimal for firms in the semiconductor industry. Furthermore, strong and weak ties are positively related to firm performance in the steel and semiconductor industries, respectively.
ISSN:0143-2095
1097-0266
DOI:10.1002/(SICI)1097-0266(200003)21:3<369::AID-SMJ93>3.0.CO;2-M