A MATCHING THEORY OF EMBEDDED INTERFIRM TIE FORMATION.

The article presents research which discussed a theory concerning embedded interfirm tie formation in formal organizations. The researchers integrated the concept of embeddedness with corporate perspectives to explain how positional, structural and relational embeddedness influence tie formation. They examined the characteristics of investment banks that are most likely to receive and initiate ties. They found that network resource compatibility plays an important role in the formation of such alliances.