The author listing is alphabetical; both authors have contributed equally to the research reported in this paper.
Membership Matters: On the Value of Being Embedded in Customer Networks
Article first published online: 9 NOV 2009
© 2010 The Authors. Journal compilation © 2010 Blackwell Publishing Ltd and Society for the Advancement of Management Studies
Journal of Management Studies
Volume 47, Issue 6, pages 944–966, September 2010
How to Cite
Fjeldstad, Ø. D. and Sasson, A. (2010), Membership Matters: On the Value of Being Embedded in Customer Networks. Journal of Management Studies, 47: 944–966. doi: 10.1111/j.1467-6486.2009.00901.x
- Issue published online: 20 JUL 2010
- Article first published online: 9 NOV 2009
Learning about customers and their contexts is vital to firm strategy. We examine how firms can learn by participating in their customers' networks. Specifically, we explain how a bank can increase the value that it creates for customers by being embedded in the networks in which the customers are embedded. We argue that knowledge pertinent to a particular customer is available in the network of affiliated, inter-related customers, and that being structurally embedded in this network can help banks overcome information asymmetries. We use hierarchical linear modelling to test the argument that a bank's structural embeddedness in its customers' network positively affects the bank's ability to offer favourable credit terms. We find that not only does such structural embeddedness affect credit terms, but it also moderates the effects of previously examined relational embeddedness on credit terms.