The Embeddedness of Organizations: Dialogue & Directions M. Tina Dacin Texas A & M University Marc J. Ventresca Northwestern University Brent D. Beal Texas A & M University We review research on organizations to highlight prevailing and emerging conceptions for embeddedness. An integrated framework that considers the sources, mechanisms, outcomes, and strategic implica- tions of embeddedness is presented. Also, promising research directions for embeddedness approaches, including cross-level issues (such as collective cognition and nesting), as well as issues related to temporal- ity, networks, and methodology are identified. © 1999 Elsevier Science Inc. All rights reserved. This paper reviews recent theory and empirical research that contributes to our understanding of the embeddedness of organizations. The word “embedded- ness” has taken on multiple meanings and uses, just as have other key words (Williams, 1976) like structure, culture, learning, and trust. In part, this reflects the timeliness of the term and the varied theoretical traditions and empirical puzzles which ground the concept. What are embeddedness arguments? What mecha- nisms do they suggest should be involved in understanding organization, strategy, and management? How do these differ from prevailing arguments in organiza- tional studies? What are the limits to the contribution of embeddedness argu- ments? And, what is organizational about this? In this article, we develop provisional responses to these questions with a focus on current research dialogue and a view to new directions. We treat embeddedness as concept and construct in dialogue with current research on organizations and institutions. Other recent works review in generous detail conceptual and empirical work that develop embeddedness arguments in eco- nomic sociology (Lie, 1997; Powell & Smith-Doerr, 1994), network theories of Direct all correspondence to: M. Tina Dacin, Department of Management, Mays College & Graduate School of Business, Texas A & M University, College Station, TX 77843-4221; Phone: (409) 845-4882; e-mail: tdacin@tamu.edu. Journal of Management 1999, Vol. 25, No. 3, 317–356 Copyright © 1999 by Elsevier Science Inc. 0149-2063 317 at SAGE Publications on April 29, 2015 jom.sagepub.com Downloaded from