The Role of Structural and Relational Embeddedness on the Success of Strategic Initiatives

In this paper, we argue that the success of strategic initiative ? which are one of the principal mechanisms for strategic renewal ? is dependent on the relational and structural embeddedness of the pursuing actions units in the intrafirm network. The paper develops a multilevel framework, relating key network propositions on the action unit level and on the network level to the success of strategic initiatives. We argue that the roles relational and structural embeddedness play can only be understood with reference to the other, as the effects of relational embeddedness are moderated through the network structure. More specifically we argue that dense networks weaken the positive effect of strong ties and that sparse networks weaken the positive effect of weak ties on the success of initiatives. This multilevel structural and relational embeddedness perspective enhances our
understanding of strategic initiatives and provides intriguing possibilities for future research.