Study On Selection Of Relational Embeddness Dimension Based On Relationship Transfer

The relationship between the inter-enterprise network is the lifeline of China’s social relationships and business practices. The relationship between enterprises in the enterprise network can be transferred between the parties, in which way may form relational embeddness between the corporate organization. Policy makers and managers in business organization deal with uncertainty, enhance the social legitimacy of the enterprise, and build trust and information exchange channels which conducive to business performance, through building relationships and informal agreements in a wide range of social activities. Different relationship transfer motivation such as reducing transaction risks, establishing deeply trust and getting tacit knowledge may make cooperative enterprises form different values, and lead to different relationship embeddedness.By reading the literatures, the theoretical analysis part in this paper summarized motivations of partners and intermediaries, and interpreted two kinds of dimensions of relational embeddness-value orientation and embeddness mode of relational embeddness. Value orientation includes mutual value creation and value appropriation. Embeddness mode includes using the formal contract, using specific human capital, or using a combination of both. Before empirical analysis, this paper do the reliability, validity and principal component analysis of the motivation sample of the partners and intermediaries from the three cooperation types of venture capital, technology and market development. Combined with the selection of the control variables, it determined the variables which can enter the empirical part. In the empirical analysis section, logistic model analyzed the factors which affected value orientation of relational embeddedness, discriminant model analyzed the selection of the relational embeddness mode, and also compared factors which affect relational embeddedness dimension in the three types of enterprises. The results show that:the stronger willingness of partners to share knowledge and the higher degree to share, and the stronger willingness of intermediaries to participate in the present and future cooperation, it is more likely to choose the reciprocal value creation, otherwise select value appropriation. When the level of the degree of trust in cooperation of partners and the degree of intermediaries involvement were both high, partners used specific human capital to form embeddedness relationship; when the level and degree mentioned above were both low, partners selected formal contract; other cases, partners combinded the two embeddness mode. In addition, the flexibility, the scale and the ownership forms of firms, all had impacts on the relational embeddedness dimensions. Finally, the study provided some managerial implications and future research prospects, in the light of the study results and inadequates.