The study of embeddedness enlarged the economic analysis of sociology and provides a new way for the study of economy and management.But today two tendencies,misunderstanding and misleading,led to wrong utilization of embeddedness theory.The main reason is short of systematic analysis from the origin of the concept.Trust mechanism and firm boundary problem can be helped by embeddedness theory through a perspective of social network.Relational embeddedness and structural embeddedness are the main methods for embeddedness analysis.A combination of TCE,RBV and embeddedness makes the theory closer to the theoretic systems of economy and management.The paper tried to systemize the content,methods and development tendency of embeddedness and attempts to make it a better understanding and application.