We develop a theory of the effects of inter-organizational networks on both radical and incremental forms of firm-level entrepreneurial behavior (EB). The central argument is that structural embeddedness, with its focus on the network as a whole, and its two consequences, relational and cognitive embeddedness, individually and collectively influence incremental and radical forms of EB. Relationships in our model are driven by reciprocal interactions between intra- and inter-organizational sensemaking. This reasoning leads us to a dynamic, co-evolutionary model of EB.
Get full access to this article
View all access options for this article.
References
1.
Abrahamson, E., & Fombrun, C. J.1994. Macrocultures: Determinants and consequences. Academy of Management Review, 19: 728–755.
2.
Amason, A. C.1996. Distinguishing the effects of functional and dysfunctional conflict on strategic decision making: Resolving a paradox for top management teams. Academy of Management Journal, 1: 123–148.
3.
Ancona, D. A., & Caldwell, D. F.1992. Demography and design: Predictors of new product team performance. Organization Science, 3: 321–341.
Axelrod, R., & Keohane, R. O.1985. Achieving cooperation under anarchy: Strategies and institutions. World Politics, 38: 226–254.
6.
Baker, W. E.1990. Market networks and corporate behavior. American Journal of Sociology, 96: 589–625.
7.
Barley, S., Freeman, J., & Hybels, R.1992. Strategic alliances in commercial biotechnology. In N. Nohria & R. Eccles (Eds.), Networks and organizations: Structure form, and action: 311–347. Boston: Harvard University.
8.
Blau, P.1964. Exchange and power in social life. New York: Wiley.
9.
Bosch, F. A. J. V., Volberda, H. W., & Boer, M. D.1999. Coevolution of firm absorptive capacity and knowledge environment: Organizational forms and combinative capabilities. Organization Science, 10: 551–568.
10.
Burt, R. S.1987. Social contagion and innovation: Cohesion versus structural equivalence. American Journal of Sociology, 92: 1287–1335.
11.
Burt, R. S.1992. Structural holes: The social structure of competition. Cambridge, MA: Harvard University Press.
12.
Coleman, J. S.1988. Social capital in the creation of human capital. American Journal of Sociology, 4: 95–120.
13.
Coleman, J. S.1990. Rational action, social networks, and the emergence of norms. In C. Calhoun, M. W. Meyer, & W. R. Scott (Eds.), Structures of power and constraint: 91–112. New York: Cambridge University Press.
14.
Dacin, M. T., Ventresca, M. J., & Beal, B. D.1999. The embeddedness of organizations: Dialogue directions. Journal of Management, 25: 317–356.
15.
Dess, G. G., & Priem, R. L.1995. Consensus-performance research: Theoretical and empirical extensions. Journal of Management Studies, 32: 401–417.
16.
DiMaggio, P. J., & Powell, W. W.1983. The iron cage revisited: Institutional isomorphism and collective rationality in organizational fields. American Sociological Review, 48: 147–160.
17.
Dutton, J. E., & Duncan, R. B.1987. The creation of momentum for change through the process of strategic issue diagnosis. Strategic Management Journal, 8: 279–295.
18.
Dyer, J. H., & Singh, H.1998. The relational view: Cooperative strategy and sources of interorganizational competitive advantage. Academy of Management Review, 23: 660–679.
19.
Ekeh, P. P.1974. Social exchange theory: The two traditions. Cambridge, MA: Harvard University Press.
20.
Faulkner, R. E., & Anderson, A. B.1987. Short-term projects and emergent careers: Evidence from Hollywood. American Journal of Sociology, 92: 879–909.
21.
Freeman, L. C.1979. Centrality in social networks: I. Conceptual clarifications. Social Networks, 1: 215–239.
22.
Friedkin, N. E.1982. Information flow through strong and weak ties in interorganizational social networks. Social Networks, 3: 273–285.
23.
Gavetti, G., & Levinthal, D.2000. Looking forward and looking backward: Cognitive and experiential search. Administrative Science Quarterly, 45: 113–137.
24.
Granovetter, M.1985. Economic action and social structure: The problem of embeddedness. American Journal of Sociology, 91: 481–510.
25.
Granovetter, M.1992. Problems of explanation in economic sociology. In N. Nohria & R. G. Eccles (Eds.), Networks and organizations: Structure, form, and action: 25–56. Boston: Harvard Business School Press.
26.
Granovetter, M. S.1973. The strength of weak ties. American Journal of Sociology, 78: 1360–1380.
27.
Gulati, R.1995. Does familiarity breed trust? The implications of repeated ties for contractual choice in alliances. Academy of Management Journal, 38: 85–112.
28.
Gulati, R., & Gargiulo, M.1999. Where do interorganizational networks come from?American Journal of Sociology, 104: 1439–1459.
29.
Guth, W. D., & Ginsberg, A.1990. Guest editors’ introduction: Corporate entrepreneurship. Strategic Management Journal, 11: 5–15.
30.
Hambrick, D. C.1994. Top management groups: A conceptual integration and reconsideration of the team label. In B. M. Staw & L. L. Cummings (Eds.), Research in organizational behavior: Vol. 16, 171–214. Greenwich, CT: JAI Press.
31.
Hambrick, D. C., & Mason, P. A.1984. Upper echelon: The organization as a reflection of its top managers. Academy of Management Review, 9: 193–206.
32.
Janis, I. L.1972. Victims of groupthink. Boston: Houghton Mifflin.
33.
Jones, C., Hesterly, W. S., & Borgatti, S. P.1997. A general theory of network governance: Exchange conditions and social mechanisms. Academy of Management Review, 22: 911–945.
34.
Katz, R.1982. The effects of group longevity on project communication and performance. Administrative Science Quarterly, 27: 81–104.
35.
Krackhardt, D.1992. The strength of strong ties: The importance of Philos in organizations. In N. Nohria & R. G. Eccles (Eds.), Networks and organizations: Structure, form, and action: 216–239. Boston MA: Harvard Business School Press.
36.
Krackhardt, D., & Stern, R. N.1988. Informal networks and organizational crises: An experimental simulation. Social Psychology Quarterly, 51: 123–140.
37.
Lant, T. K., & Mezias, S. J.1990. Managing discontinuous change: A simulation study of organizational learning and entrepreneurship. Strategic Management Journal, 11: 147–179.
38.
Levinthal, D. A., & March, J. G.1993. The myopia of learning. Strategic Management Journal, 14: 95–112.
39.
Lewin, A., & Volberda, H.1999. Prolegomena on coevolution: A framework for research on strategy and new organizational forms. Organization Science, 10: 519–534.
40.
March, J. G.1991. Exploration and exploitation in organizational learning. Organization Science, 2: 71–87.
41.
Marsden, P. V.1990. Network data and measurement. Annual Review of Sociology, 16: 435–463.
42.
Miller, D.1983. Entrepreneurship correlates in three types of firms. Management Science, 29: 770–791.
43.
Miller, D.1996. The embeddedness of corporate strategy: Isomorphism vs. differentiation. In J. A. C. Baum & J. E. Dutton (Eds.), Advances in strategic management: Vol. 13. Greenwich, CT: JAI Press.
44.
Molm, L. D.1994. Dependence and risk: Transforming the structure of social exchange. Social Psychology Quarterly, 57: 163–176.
45.
Morris, M. H.1998. Entrepreneurial intensity: Sustainable advantages for individuals, organizations, and societies. West-port, CT: Quorum Books.
46.
Nahapiet, J., & Ghoshal, S.1998. Social capital, intellectual capital, and the organizational advantage. Academy of Management Review, 23: 242–266.
Podolny, J.1994. Market uncertainty and the social character of economic exchange. Administrative Science Quarterly, 39: 458–483.
49.
Powell, W. W.1990. Neither market nor hierarchy: Network forms of organization. Research in Organizational Behavior, 12: 295–336.
50.
Powell, W. W., Koput, K., & Smith-Doerr, L.1996. Interorganizational collaborations and the locus of innovation: Networks of learning in biotechnology. Administrative Science Quarterly, 41: 116–145.
51.
Saxenian, A.1990. Regional networks and the resurgence of Silicon Valley. California Management Review, 33(1): 89–112.
52.
Scott, W. R.1995. Institutions and organizations. Thousand Oaks, CA: Sage.
53.
Seabright, M. A., Levinthal, D. A., & Fichman, M.1992. Role of individual attachment in the dissolution of interorganizational relationships. Academy of Management Journal, 35: 122–160.
54.
Tushman, M. J., & Anderson, P.1986. Technological discontinuities and organizational environments. Administrative Science Quarterly, 31: 439–465.
55.
Uzzi, B.1997. Social structure and competition in interfirm networks: The paradox of embeddedness. Administrative Science Quarterly, 42: 35–67.
56.
Walsh, J.1995. Managerial and organizational cognition: Notes from a trip down memory lane. Organization Science, 6: 280–321.
57.
Wasserman, S., & Faust, K.1994. Social network analysis: Methods and applications. Cambridge, UK: Cambridge University Press.
Weick, K. E.1995. Sensemaking in organizations. London: Sage.
60.
Wellman, B.1991. Structural analysis: From method and metaphor to theory and substance. In B. Wellman & S. D. Berkowitz (Eds.), Social structures: A network approach: 19–61. Cambridge, UK: Cambridge University Press.
61.
Williamson, O. E.1985. The economic institutions of capitalism: Firms, markets and relational contracting. New York: Free Press.
62.
Williamson, O. E.1991. Comparative economic organization: The analysis of discrete structural alternatives. Administrative Science Quarterly, 36: 269–296.
63.
Zahra, S. A.1996. Governance, ownership, and corporate entrepreneurship: The moderating impact of industry technological opportunities. Academy of Management Journal, 39: 1713–1735.
64.
Zenger, T. R., & Lawrence, B. S.1989. Organizational demography: The differential effects of age and tenure distribution on technical communication. Academy of Management Journal, 32: 353–376.
