Key paper 6 Uzzi 1997 Social structure and competition in interfirm networks: the paradox of embeddedness

Question 1

Arm’s-length ties

Answer 1

market relationship: lack of reciprocity, non-repeative, narrow eco matters.

Question 2

embedded ties

Answer 2

close or special relationships: personal nature of business relationships and their effect on eco process

Question 3

3 main components of embedded relationships to regulate the expectations and behaviors of partners

Answer 3

1) trust
2) fine-gained info transfer (info more vertrouwelijk and tacit)
3) joint problem-solving arrangements

Question 4

trust

Answer 4

when extra effort was voluntarily given and reciprocated

Question 5

Joint problem-solving arragements

Answer 5

• market: exit-or-stay
• embedded relationship: firms work through problems and get direct feedback, increasing learning and the discovery of new combinations

Question 6

economies of time

Answer 6

the ability to capitalize quickly on market opportunities.

Question 7

neoclassical model of search behavior

Answer 7

efficiency and profit maximization depend on individual search behavior (search for alternatives). Search ends when marginal coast of search and expected marginal gain of a set alternatives is equal to zero.