Interorganizational Collaboration, Social Embeddedness, and Value Creation

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Interorganizational Collaboration, Social Embeddedness, and Value Creation: A Theoretical Analysis
Hsin-Mei Lin. International Journal of Management. Poole: Sep 2006. Vol. 23, Iss. 3; Part 1. pg. 548, 11 pgs


Abstract (Summary) This paper explains interorganizational collaboration and its success at value creation (of time-to-market and cost benefits) by adopting the concepts of network, transaction cost economics (TCE) and the resources-based view (RBV). The TCE and RBV theories together portray the modes of exchanging strategic resources, which are characterized by information asymmetry, resources inimitability, and resources immobility.
Also, the importance of the role of relational embeddedness in moderating information problems, the role of structural embeddedness in offering informal safeguarding mechanisms to lessen coordination difficulty, and the role of positional embeddedness in strengthening the benefits of the other kinds of embeddedness are elucidated in terms of network theory to explain that strategic resources exchange, despite transaction difficulties, can be conducted.
This paper also proposes that interorganizational embeddedness in interfirm collaborations of resources exchange and combination has a supplemental role for facilitating value creation when transaction cost theories and the resources-based view are applied in the exchange process and modes.