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| Author: | Meuleman, M. (et al.) |
| Title: | Partner selection decisions in interfirm collaborations: the paradox of relational embeddedness |
| Journal: | Journal of Management Studies
2010 : SEP, VOL. 47:6 p. 995-1019 |
| Index terms: | decision making management buy-outs United Kingdom |
| Freeterms: | longitudinal method business partnership |
| Language: | eng |
| Abstract: | In this article, the boundary conditions to the embeddedness approach to partner selection decisions in intercompany associations are identified by combining perceptions from relational network theory and agency theory. Using a longitudinal dataset including the investment syndicates for the population of UK management buyouts between 1993 and 2003, it is found that relational embeddedness is less important for selecting partners when agency risks are low, allowing companies to broaden their networks. In addition, reputational capital may be a partial substitute for relational embeddedness, again permitting companies to expand their networks. |
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