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interfirm network

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interfirm network
A group of related organizations that partner and/or cooperate with each other in order to provide expanded products and services. The Japanese "Keiretsu" is perhaps the best example of an interfirm network. See Keiretsu.


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35) captured the seminal thoughts on the development of the embeddedness concept by stating, "Polanyi (1944) used the concept of embeddedness to describe the social structure of modern markets, while Schumpeter (1950) and Granovetter (1985) revealed its robust effect on economic action, particularly in the context of interfirm networks.
I submit that the formalization of an interfirm network in a multilateral alliance may help overcome problems of coordination and cooperation in a context of high resource diversity.
Because economic action is inevitably embedded in social structure (Granovetter 1985), this notion of embeddedness reveals the significant role of social relations in economic and management activities and has stimulated studies of interfirm networks (Uzzi 1997), marketing channels (Moorman/Zaltman/Deshpande 1992), location decisions (Romo/Schwartz 1995), organizational adaptation (Baum/Oliver 1991), and ethnic economies (Waldinger/Aldrich/Ward 1990).
 
 
 
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