TY - CHAP AB - We discuss the ‘gloomy’ side of firms’ embeddedness in networks of inter-firm partnerships. We propose a nested understanding of the effects of three levels of overembeddedness – environmental, inter-organizational and dyadic overembeddedness – on subsequent inter-firm partnership formation and argue for a joint examination of these three levels and their interactions over time. As a whole, increases in firms’ embeddedness will generate decreasing returns to the firms involved, prompting (i) the search for and attachment to novel partners and (ii) the dissolution of extant partnerships. On the flipside, overembeddedness thus sparks network evolution – by cueing firms to look beyond their embedded partnerships. VL - 25 SN - 978-0-7623-1442-3, 978-1-84950-531-4/0742-3322 DO - 10.1016/S0742-3322(08)25014-X UR - https://doi.org/10.1016/S0742-3322(08)25014-X AU - Hagedoorn John AU - Frankort Hans T.W. ED - Joel A.C. Baum ED - Timothy J. Rowley PY - 2008 Y1 - 2008/01/01 TI - The gloomy side of embeddedness: The effects of overembeddedness on inter-firm partnership formation T2 - Network Strategy T3 - Advances in Strategic Management PB - Emerald Group Publishing Limited SP - 503 EP - 530 Y2 - 2024/04/23 ER -