REDUNDANT GOVERNANCE STRUCTURES: AN ANALYSIS OF STRUCTURAL AND RELATIONAL EMBEDDEDNESS IN THE..

Abstract

Network researchers have argued that both relational embeddedness-characteristicsof relationships-and structural embeddedness-characteristics of therelational structure- influence firm behavior and performance. Usingstrategic alliance networks in the semiconductor and steel industries,we build on past embeddedness research by examining the interactionof these factors. We argue that the roles relational and structuralembeddedness play in firm performance can only be understood withreference to the other. Moreover, we argue that the influence ofthese factors on firm performance is contingent on industry contextMore specifically, our empirical analysis suggests that strong tiesin a highly interconnected strategic alliance network negativelyimpact firm performance. This network configuration is especiallysuboptimal for firms in the semiconductor industry. Furthermore,strong and weak ties are positively related to firm performance inthe steel and semiconductor industries, respectively.