Patterns of Multidimensionality of Embedded Network Ties in Emerging Entrepreneurial Firms

The social components of embedded network ties areexamined as well as how these components are related to trust, and whether themultidimensionality of these ties creates different types of embeddedness. Thisinvestigation contributes to the conceptual understanding of embeddedness andproposes a theoretical base for the multidimensionality of embeddedness. Eight case studies of emerging entrepreneurial firms from the computerindustry in a western U.S. state are presented, and 66 embedded network tiesacross the eight cases are examined. Significant differences exist among theembedded network ties, especially in dimensions of trust and socialrelationships. Three types of trust relationships (personal, goodwill, andeconomic) are found, as well as three types of social relationships (personal,dyadic interaction, and social capital). Embedded ties are classified intoseven types or patterns. Differences between these types of ties may be crucialfor effective governance of the external relationships of emergingentrepreneurial firms. The results suggest that full embeddedness would contribute to successfulperformance of the firm. If emerging entrepreneurial firms assume all embeddednetwork ties are similar and are governed by relational governance alone, thefirm may encounter governance difficulties. (TNM)