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Espacios. Vol. 33 (9) 2012. Pág. 5 Economic Sociology and its Contribution to Operations Management Field: An Exploratory Study Sociologia Económica e sua Contribuição para operações de campo de Gestão: Um Estudo Exploratório Enise Aragão dos Santos 1 e Cristiane Biazzin Villar 2 Aprobado: 15052012 Contenido 1. Introdução 2. Economic Sociology – Origins and Concept 3. Current Stream 4. Research Methodology 5. The Sociology of Economic Studies in Operations and Supply Chain Management 6. Conclusion References Appendix Gracias a sus donaciones esta página seguirá siendo gratis para nuestros lectores. Graças a suas doações neste site permanecerá gratuito para os nossos leitores. Thanks to your donations this site will remain free to our readers. ABSTRACT: The aim of this paper is to analyze the concept of Economic Sociology and its current usage in Operations and Supply Chain Management studies. Based on a qualitative approach, we have examined articles and papers about sociology and operations management. Although the findings of this paper are still preliminary, it offers an initial understanding of the Economic Sociology field, its classical references, as well as its key conclusions and contributions. Furthermore, it gives an overview of empirical studies that used the economic sociology to study Operations and Supply Chain Management. Keywords: Economic sociology; Operations Management; Supply Chain Management RESUMO: O objetivo deste artigo é analisar o conceito de Sociologia Económica e seu uso atual em Operações e estudos de Supply Chain Management. Com base em uma abordagem qualitativa, examinamos artigos e trabalhos sobre sociologia e gestão de operações. Apesar de os resultados deste trabalho são ainda preliminares, ele oferece uma compreensão inicial do campo de Sociologia Econômica, suas referências clássicas, bem como as suas principais conclusões e contribuições. Além disso, dá uma visão geral de estudos empíricos que utilizaram a sociologia econômica para estudar Gestão de Operações e Supply Chain. Palavraschave: Sociologia Económica, Gestão da Cadeia de Suprimentos, Gestão de Operações 1. Introduction The most popular theoretical approach in studying operations management has been the theories of Transaction Cost and of Competitive Advantage, either Porterian analysis or resourcebased approach (Pilkington and Fitzgerald, 2006, Burgess, Koroglu and Singh, 2006). As a consequence, there is a possible exhaustion of operations studies due to the use of the same theories, what some authors call "doing more of the same type of research will most likely produce more of the same order of results " (Burgess, Singh and Koroglu, 2006 p.721). The aim of this study is to present an exploratory approach to the concept of Economic Sociology (EC), its current usage as well as

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Page 1: Economic Sociology and its Contribution to Operations ... · Management studies. Based on a qualitative approach, we have examined articles and papers about sociology and operations

Espacios. Vol. 33 (9) 2012. Pág. 5

Economic Sociology and its Contribution to OperationsManagement Field: An Exploratory Study

Sociologia Económica e sua Contribuição para operações de campo de Gestão:Um Estudo Exploratório

Enise Aragão dos Santos 1 e Cristiane Biazzin Villar 2

Aprobado: 15­05­2012

Contenido

1. Introdução2. Economic Sociology – Origins and Concept3. Current Stream4. Research Methodology5. The Sociology of Economic Studies in Operations and Supply Chain Management6. ConclusionReferencesAppendix

Gracias a sus donaciones esta página seguirá siendo gratis para nuestros lectores.Graças a suas doações neste site permanecerá gratuito para os nossos leitores.

Thanks to your donations this site will remain free to our readers.

ABSTRACT:The aim of this paper is to analyze the concept of EconomicSociology and its current usage in Operations and Supply ChainManagement studies. Based on a qualitative approach, we haveexamined articles and papers about sociology and operationsmanagement. Although the findings of this paper are stillpreliminary, it offers an initial understanding of the EconomicSociology field, its classical references, as well as its keyconclusions and contributions. Furthermore, it gives anoverview of empirical studies that used the economic sociologyto study Operations and Supply Chain Management. Key­words: Economic sociology; Operations Management;Supply Chain Management

RESUMO:O objetivo deste artigo é analisar o conceito de SociologiaEconómica e seu uso atual em Operações e estudos de SupplyChain Management. Com base em uma abordagem qualitativa,examinamos artigos e trabalhos sobre sociologia e gestão deoperações. Apesar de os resultados deste trabalho são aindapreliminares, ele oferece uma compreensão inicial do campo deSociologia Econômica, suas referências clássicas, bem como assuas principais conclusões e contribuições. Além disso, dá umavisão geral de estudos empíricos que utilizaram a sociologiaeconômica para estudar Gestão de Operações e Supply Chain. Palavras­chave: Sociologia Económica, Gestão da Cadeia deSuprimentos, Gestão de Operações

1. Introduction

The most popular theoretical approach in studying operations management has been the theories ofTransaction Cost and of Competitive Advantage, either Porterian analysis or resource­basedapproach (Pilkington and Fitzgerald, 2006, Burgess, Koroglu and Singh, 2006). As a consequence,there is a possible exhaustion of operations studies due to the use of the same theories, what someauthors call "doing more of the same type of research will most likely produce more of the sameorder of results " (Burgess, Singh and Koroglu, 2006 p.721). The aim of this study is to present anexploratory approach to the concept of Economic Sociology (EC), its current usage as well as

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possible opportunities for research within the Operations (OM) and Supply Chain Management(SCM) field. Based on a qualitative approach, we have examined articles and papers aboutsociology and operations management.

This paper is relevant when studying operations management not only because it provides a reviewof the literature, but also once it presents a new theoretical approach, rarely used in OM studies. Inaccordance with Kilduff’s (2007) concerns about the contribution of this method, this study sums itup in pragmatic way, encouraging the production of new integrative insights, important to providethe reader the possibility of having a broader view of Economic Sociology (Lepine and King,2010).

The main contributions of this paper are: (i) to provide an initial understanding of the EconomicSociology field, its classical references, as well as its key conclusions ad contributions; and (ii) tooffer an overview of empirical studies that used the economic sociology to study Operations andSupply Chain Management.

This paper is structured in seven sections. Firstly, it analyses the history and the concept ofeconomic sociology, as well as its current branches. Then, it details the methodological proceduresused in this study and presents the state of the art of this theoretical approach in Operations andSupply Chain Management. We conclude showing future research opportunities.

2. Economic Sociology – Origins and Concept

According to Swedberg (1993), the idea of economic sociology was already present in MaxWeber’s studies since Weber focused on analyzing the polarization between the historical andtheoretical approaches in economic investigations, what was later called as “a war of methods”(Methodenstreit). The findings of Emile Durkheim, Karl Marx and Karl Polanyi were extremelyimportant to a better understanding of the social structure of exchanges; these authors demonstratedthat the economic sphere is independent from the social sphere, opposite to the classicaleconomists’ beliefs (Granovetter, 1985).

By definition, the economic sociology is understood as the usage of the structure of references,variables and forms of sociological explanation in complex activities related to production,distribution, exchange and consumption of scarce resources and services (Smelser and Swedberg,1994). Nowadays, the economic sociology significantly contributes to organizational analysis, byoffering an overview on how the economic actors, despite their interests, are influenced by theinteraction and the social structure. Consequently, there are diverse issues on the agenda when oneassumes that the economic arena is made up of many social mechanisms, such as trust, cooperationand competition (Swedberg, 1993).

The so called New Economic Sociology is not only the sociological treatment of economicvariables, but it also includes the construction of a systematic body of knowledge formed byquestions that create a debate and divide the actors in groups. Based on Max Weber’s (1949)writings, Swedberg (2004, p. 7) states that: "the economic sociology studies both the economicsector in society (economic phenomenon) and how this phenomenon influences the rest of thesociety (economically conditioned phenomenon) and the way the rest of society influences them(economically relevant phenomenon). "

Nevertheless, when economics and sociology are studied together, it is perceived a greater scope ofinterests and methodological innovation. If, until the 1980s, economic sociologists had focused oninstitutions and paid close attention to issues related to control, sanctions and rules, in the last twodecades, gender, social networks and culture have become key elements in the analysis.

The first milestone of the American New Economic Sociology can be found in the papers of Mark

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Granovetter, specifically with the development of the term of embeddedness, originally used byKarl Polanyi (1980). Granovetter was also responsible for making the networks analysis as anapproach to economic sociology more common. It has been seen as an influence of his teacherHarrison White, author of Markets from Networks (2001).

According to the current stream of the new economic sociology (NES), organizations and marketsare social constructs that vary depending on the institutions and the context and are placed indifferent production systems. The NES emphasizes the investigation of actions and collectiveenterprises, social roles, norms, and sanctions. Furthermore, it studies the modifications ininstitutional arrangements that shape historical and economic ties as well as social networks that areestablished by social workers in a given market sphere. According to Granovetter, the focus of theEconomic Sociology is neither on the curves of supply and demand nor on the price considerationas the only source of information in a market, as in economics; it does not focus as well on the legalframework that supports market transactions, as in economic law.

Understanding the relationship between economic action and social structure is the key tocomprehend the work of Granovetter (1985), who uses the concept of embeddedness todemonstrate how social relations affect economic behavior and institutions. From an embeddednesspoint of view, the actors have an aim within the social relations system. The author highlights thateconomic action and results are affected by the actors and the structure of the network. Theenmeshment of economic actions in social relations (power, sociability, friendship, approval, trust)is a critical variable for economic agents to make a decision, modifying the way preferences andrationality are discussed.

The studies of Granovetter have been the basis for further developments. On one hand, someauthors aimed at identifying possible types of embeddedness; whilst Hess (2004) recognized threebasic types (societal, network and territorial), Törnroos and Halinen (1998) identified six differenttypes (social, technological, market, political, temporal and spatial). On the other hand, othersauthors, like Zukin and DiMaggio (1994), planning on expanding the original concept, incorporatedcognitive, cultural and political dimensions.

Moreover, several authors use the idea of embeddedness as a possible approach to social networks(Borgattti and Foster, 2003). Others, in turn, try to link truths about weak ties with differentconceptions of embeddedness and / or make use of the analysis method of networks, whichwasheavily used by Granovetter to study the embeddedness in social relations (Burt, 1992; Lin, 2001).

The European economic sociology, less known in Brazil, the papers of Laurent Thévenot, LucBoltanski, Michel Callon, and Pierre Bourdieu, who introduced key concepts for this approach,such as habbits, field, capital and interest. Whereas Boltanski and Thévenot draw attention to theanalysis of traditions that guide economic actions (justification standard models), Callon and BrunoLatour focus on science and technology, developing a theory of actors and networks (actor­networks­theory) (Swedberg, 2004).

3. Current Stream

Since 1985, markets economic sociology has been studied in a different way and, in a broad sense,it can be split in three streams:

1. Social networks or structuralism: Mark Granovetter and Harrison C. White are the mainexponents, but Ronald Burt ­ methods, competition; Wayne E. Baker ­ stock exchange,advertising market; and Brian Uzzi ­ textiles sector ­ can also be included.

2. Institutionalism: mainly the papers of Neil Fligstein. It focus on explaining how cognitionand action are defined by market rules, power and norms.

3. Performativity: key authors are Michel Callon, Fabian Muniesa and Donald MacKenzie ­

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financial models, social definition of price, credit. It assumes that economic action is a resultof calculation processes, technologies and tools employed by social actors in markets, suchas economic theories.

Two other streams can be identified: (1) the culture approach to business and market organizations.Different authors can be included in this category, such as Viviana Zelizer, Mitchell Abolafia(social aspects of a stock exchange daily life), Paul DiMaggio & Walter Powell (organizations,culture, networks, Internet), and Lynette Spillman (business associations, culture); and (2) theapproach developed at the Max Planck Institute for the Study of Societies in Germany, whichcombines markets types and aims at summing up the findings of the aforementioned branches.

In this approach, Beckert and Streeck (2008) analyze how problems in coordination can be solvedin the market exchange process and how specific solutions can affect the contours of economictransactions in terms of efficiency and distribution. For both authors, three markets coordinationproblems can be distinguished: goods and/or services evaluation, competition structure andachievement of cooperation between actors in a conflict of interests. According to them, companiesand regulatory bodies play a crucial role in shaping the market: as a result, studying theseinstitutions is extremely important for markets sociology.

In accordance with it, Möllering (2007, 2005) points out that markets cannot solely be defined as aninteraction place between buyers and producers. Regulatory organizations such as governmentagencies, trade unions, professional bodies and business associations also play an important role inthe constitution of the market social structure.

Another important author within Max Planck is Patrik Aspers (2009, 2007, 2005, 2001), who alsofocuses on the social constitution of markets and on the link between economic sociology and otherdisciplines. Moreover, he reviews the papers of classical authors such as Weber, Simmel, Veblen,Marshall, Pareto, Parsons, Schütz, and even Nietzsche. Cornelia Woll, who studies lobbies,businessmen and business association in France, must also be mentioned.

Authors Year Journal Paper title Main discussion

Handfield e NicholsJr. 2004 IMM

Key issues in global supply basemanagement

Analysis of buyer organization efforts tomanage international suppliers base.Emphasis on human factor to stablish apositive relationship in order to reachsuperior performance

Ling­yee 2004 IMM

An examination of the foreign marketknowledge of exporting firms basedin the People's Republic of China: Itsdeterminants and effect on exportintensity

Conceptual framework of knowledge driversof foreign markets ­ Social Capitalperspective

Kjellberg andHelgesson 2006 IMM

Multiple versions of markets: Multiplicity and performativity inmarket practice

Framework to analyse multitheoreticalinfluences of market analysis

Rinallo and Golfetto 2006 IMMRepresenting markets: The shapingof fashion trends by French andItalian fabric companies

Etnographic­descriptive paper ­ throughdifferent theoretical lens.

Bradley, Meyer andGao 2006 IMM

Use of supplier­customerrelationships by SMEs to enterforeign markets

SME and global suppliers development.

Brennan 2006 IMM Evolutionary economics and themarkets­as­networks approach

Compare market as network vs industrialmarketing and economic evolution

Azimont and Araujo 2007 IMMCategory reviews as market­shapingevents

Qualitative­descriptive approach: evaluatemeetings between makers, customers anddistribution

Möller and Rajala 2007 IMM Rise of strategic nets — New modes Qualitative descriptive approach ­ typology of

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of value creation business networks creation

Mouzas, Hennebergand Naudé

2008 IMM Developing network insight Explores cognitives networks

Lukkari and Parvinen 2008 IMM

Pharmaceutical marketing throughthe customer portfolio: Institutionalinfluence and adaptation, IndustrialMarketing Management

Sugests that institutional descontinuitiesbalances entrepreunership and environment.

Westerlund andSvahn 2008 IMM

A relationship value perspective ofsocial capital in networks ofsoftware SMEs

Why some relationships are more importantthan others: Social Capital perspective

Mouzas and Ford 2009 IMM The constitution of networks Analysis of networks and publicorganizations relationships

Paswan andWittmann

2009 IMM Knowledge management andfranchise systems

Franchising and its networks

Järvensivu andMöller

2009 IMM Metatheory of network management:A contingency perspective

Networks categories upon interorganizationalrelationships.

Cova, Prévot andSpencer

2010 IMM Navigating between dyads andnetworks,

Explores the unit of analysis on networksstudies: dyads or networks

Storbacka andNenonen 2011 IMM

Scripting markets: From valuepropositions to market propositions

Concept of perfect market should beinnapropriated for several studies. Co­criationand capabilities perspectives

Yang, Zhou andJiang

2011 IMM

When do formal control and trustmatter? A context­based analysis ofthe effects on marketing channelrelationships in China

Analysis of the role of ties, formal controlsand confidence.

Leung, Chan, Laiand Ngai 2011 IMM

An examination of the influence ofguanxi and xinyong (utilization ofpersonal trust) on negotiationoutcome in China: An old friendapproach

Chinese negotiation, cultural issues,internationalization challenges.

Lin, Huang, Lin andHsu

2011 IMM

How to manage strategic alliancesin OEM­based industrial clusters:Network embeddedness and formalgovernance mechanisms

Formal mechanisms of governance andembeddedness of network.

Koufteros, Chengand Lai 2007 JOM

“Black­box” and “gray­box”supplier integration in productdevelopment: Antecedents,consequences and the moderatingrole of firm size

Antecents of byer supplier relationship ­exploration of suppliers embeddenesses.

Krause, Handfieldand Tyler

2007 JOM

The relationships between supplierdevelopment, commitment, socialcapital accumulation andperformance improvement

Long term commitment ­ Social Capitalperspective

Rabinovich,Knemeyer andMayer

2007 JOM

Why do Internet commerce firmsincorporate logistics serviceproviders in their distributionchannels?: The role of transactioncosts and network strength

Buyer supplier relationshipt ­ ecommerce.TCT, Networks theory and Economicsociology

Oke, Idiagbon­Okeand Walumbwa

2008 JOM

The relationship between brokers’influence, strength of ties and NPDproject outcomes in innovation­driven horizontal networks

Power issues.

Liu,Luo and Liu 2009 JOM

Governing buyer–supplierrelationships through transactionaland relational mechanisms:Evidence from China

Matched survey ­ 225 buyer­supplier pais ­exploration of simultaneous use of TCT andsocio­relational perspective ­ Competitiveadvantage

Evaluating buyer–supplierLongitudinal study: 323 relationships ­Focus: cycle link and dynamics of

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Autry and Golicic 2010 JOM relationship–performance spirals: Alongitudinal study

relationship power and performance (buyer­supplier)

Oke and Idiagbon­Oke

2010 JOM

Communication channels,innovation tasks and NPD projectoutcomes in innovation­drivenhorizontal networks,

Evaluates innovation and communication bystudying power of relationship ties.

Wagner, Coley andLindemann

2011 JSCM

Effects of Suppliers’ reputation onthe future of buyer­supplierrelationships: the mediating roles ofoutcome fairness and trust

Confidence on colaborative projects has astrong influence over future buyer supplierrelationships. Justice and reputation.

Choi and Kim 2008 JSCMStructural embeddedness andsupplier management: a networkperspective.

Structural embeddedness alligned to supplierssetup as a key to supply networks, shouldsupport new guidelines to manage vendorlists in a proper way.

Buddress and Dass 2007 JSCM Evaluating Prospective e­Providers: An Empirical Study

Economic Sociology and RBV to identify,priorize and stablish criteria to userssatifaction. Cluster + ANOVA, sample of103 organizations.

Li and Choi 2009 JSCMTriads in services outsourcing:bridge, brigde decay and bridgetransfer

Manufacturing ­ buyer acts as a bridgebetween suppliers and customers. On servicefield, the relationship structures are different.

Hunt and Davis 2008 JSCMGrounding supply chainmanagement in resource­advantagetheory

Explores if purchasing should be acompetitive advantage for a firm.

Ramalingam andRauh

2011 ManagementeScience

The Firm as a Socialization Device Framework to discuss market efficiency andcomparisson of the model within SE

Maurer, Bansal andCrossan

2011 OrganizationScience

Creating Economic Value ThroughSocial Values: Introducing aCulturally Informed Resource­BasedView

Economic Sociology + RBV to explaincultural elements and its impacts of firm value

Hirsch 2000 OrganizationScience

Cultural Industries Revisited Economic sociology to explain cultural issuesand business opportunities

Gulati, Sytch andTatarynowicz 2010

OrganizationScience

The Rise and Fall of Small Worlds:Exploring the Dynamics of SocialStructure

Exploration of social and economic issues oncolaboration networks creation and itsevolution

Ahuja, Soda andZaheer

2011 OrganizationScience

The Genesis and Dynamics of Organizational Networks

Networks dynamics discussion, roles,drivers, dimensions

Sytch, Tatarynowiczand Gulati 2011

OrganizationScience

Toward a Theory of ExtendedContact:The Incentives and Opportunities forBridgingAcross Network Communities

Exploram o conceito de redes e as conexõesentre os atores a partir de indústria detecnologia de 1991 a 2005.

Shipilov, Li andGreve 2011

OrganizationScience

The Prince and the Pauper: Searchand Brokerage in the Initiation ofStatus­Heterophilous Ties

Economic Sociology and Feedback Theory toexplain drivers to select network partners.

Bernades 2010 DecisionSciences

The effect of supply management onaspects of social capital and theimpact on performance: a socialnetwork perspective

Based on social networks perspectives, thisstudy explores relational embeddedness andinvestigates the role of management onprocess. Sample: 204 organizations

Table 1: Major authors of Contemporary Economic Sociology: a thematic synthesisSource: Adapted from Fontella (2009)

As the table 2 illustrates, the papers of Uzzi (1997) and Granovetter (1973, 1985, 1992 and 2005)are the most important in the area.

Title of paper Author Journal Year Total citations

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The Strength of weak ties Granovetter, M. American Journal of Sociology 1973 4171

Economic­action and social­structure: The problem ofembeddedness

Granovetter, M. American Journal of Sociology 1985 4092

The sources and consequencesof embeddedness for theeconomic performance oforganizations: The networkeffect

Uzzi, B. American Sociological Review 1997 899

Economic institutions as socialconstructions ­ a frameworkfor analysis

Granovetter, M. Acta Sociologica 1992 136

The impact of social structureon economic outcomes

Granovetter, M. Journal of Economics Perspective 2005 124

Table 2: Authors and main papersSource: Compiled by the authors based on data from ISI Web of Knowledge

The interest for economic sociology has significantly grown in the last few years. Graph 1 showsthat quoting of the papers of Granovetter and Uzzi have increased considerably.

Graph 1: Evolution of quotation from Granovetter and Uzzi papersSource: Compiled by the authors based on data from ISI Web of Knowledge

4. Research Methodology

The research methodology adopted in this study was a descriptive and explanatory bibliometricanalysis. To meet the aim of this study, it was developed a survey based on the followingkeywords: "economic sociology" + "supply chain", "economic sociology" + "operations." Thepreliminary research was initiated by searching the top ten OM journals listed by Meredith et al(2011) and other academic journals that cover the topic of “research operations” in its editorialliner. The authors also included other journals listed on EBSCO website, using the same keywords.The summary of the journals searched is presented in Table 3 and the full list of papers can befound in Appendix A.

Criteria for including intothe database

Journal # Papers

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Meredith et al (2011) Journal of Operations Management 7

Meredith et al (2011) International Journal of Production Research 0

Meredith et al (2011) Manufacturing and Service Operations Management 0

Meredith et al (2011) International Journal of Operations and ProductionManagement

0

Meredith et al (2011) Journal of Business Logistics 0

Meredith et al (2011) Transportation Science 0

Meredith et al (2011) Journal of Supply Chain Management 7

Meredith et al (2011) International Journal of Physical Distribution and LogisticsManagement

0

Meredith et al (2011) International Journal of Logistics Management 0

Authors decision Decision Sciences 1

Authors decision Industrial Marketing Management 20

Authors decision Organization Science 6

Authors decision Management Science 1

42

Table 3: Evolution of quotation from Granovetter and Uzzi papersSource: Compiled by the authors based on data from ISI Web of Knowledge

Despite the clear possibility of using this approach in theoretical studies of operations and supplychain management, it is clear that few writers have explored this in their studies. In the nextsection, a detailed analysis of the results of this research is presented, assessing the level of usageof this theoretical approach on operations and its current contribution.

5. The Sociology of Economic Studies in Operations andSupply Chain Management

From the sample collected, it was noted that most studies that are grounded in economic sociologyexplore issues concerning the relationship between the parties, the attempts to develop theembeddedness achievement and the strength of links between actors in the supply chain. It wasnoticed that some papers mix (and on several occasions confuse) economic sociology with othertheoretical approaches as social capital theory, exchange theory, theory of networks, making theanalysis of the current usage of ES fragile.

From the analysis of abstracts of “operations” papers that used economic sociology as a theoreticalapproach, it was a structured "word cloud" using the tool Wordle (www.wordle.com) with the mostcited words in the papers (Figure 1 and 2). Tag clouds have been widely used in the literature torepresent virtually the most frequent words in a context (Francisco, 2011).

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Figure 1: Cloud created from abstracts from OM papers that use the theory of economic sociology.Source: Compiled by the authors

It can be seen that there is an emphasis on words like "relationship" and "networks", supporting theperception that this theoretical approach has been used in studies of relationships, particularly in thesupply chain field. This insight is reinforced when the keywords of the articles are analyzed.

Figure 2: Cloud created using the keywords from OM papers that use the Economic Sociology theory.Source: Compiled by the authors

In order to better understanding the use of Economic Sociology lens on Operations Managementstudies, it will be shown some examples of researches that make models constructions possible.

Slotegraaf and Grewal (2007) studied embeddedness capabilities as a factor of competitiveadvantage, more precisely, they investigated the extent to which the embeddedness of thesecapabilities can contribute and influence decision­making in organizations.

To assess the topic “embeddedness with suppliers", Koufteros et al. (2007) raised questions fromthe literature review and validation with executives, reaching issues that take into account the timeof the relationship ("our firm has been building a long­term relationship with its suppliers"); levelof involvement ("our firm has been involved in developing partnerships with its suppliers" and "ourfirm has been involved in developing its suppliers"); and cooperation ("our firm has been creating a

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cooperative relationship with its suppliers").

The paper of Oke and Walumbwa (2008) used the strength of ties as a mediator between power andperformance. For the achievement of the "strength of ties," the authors took into account thefollowing issues:

1. Goals similarity: "I believe that the members of this network work towards attaining similargoals";

2. Interest in continuing the relationship: "I would be interested in continuing my relationshipwith other members of this network, even after the project ends" and "Even if we had otheroptions, we would remain in this network";

3. Conflict: "There is very little friction between the participants";4. Closeness level between the actors: "Our relationship with the other members is best as closeand personal" and "There is a good working relationship between the members of thisnetwork".

6. Conclusion

The use of different perspectives of organizational analysis provides new analytical andmethodological basis for understanding the dynamics of organizations and the redirection oforganizational studies (Sacoman Neto and Truzzi, 2002). Such approach is relevant because of theambiguity and contradictions found in “operations” studies. The initial aim of this study was toexplore the concept of economic sociology and its widespread usage in operations and supply chainmanagement. To this end, this research initially explored the origins and theoreticalconceptualization of said approach, identifying its classical as well as its current references.

It has been perceived that when applying the theory in operations and supply chain managementstudies, the papers examines the relationship between the parties, developing ways to make theembeddedness and the strength of ties possible.

This paper is relevant for operations and business relationship management studies since it providesmore than a simple review of the literature; it presents an organized view on a theoretical approachrarely used when one is studying operations. In accordance with the concern raised by Kilduff(2007) on the contribution of such methodological approach, this study synthesizes the approach ina pragmatic theoretical fashion and encourages the production of new integrative insights, whichwould provide the reader with the possibility of having a broadened view of economic sociology(Lepine and King, 2010).

A worrying fact is the conflicted view of the economic sociology with other theoretical approaches,such as social capital theory, exchange theory, theory of networks, thus making the analysis ofeconomic sociology superficial. However, this situation creates the opportunity for a deep anddetailed exploration of this theory. This paper’s main contribution is a preliminary understanding ofeconomic sociology, its classical references, assumptions and main constructs, thus providing anoverview and a source of reference to the empirical studies of operations and supply chainmanagement, which had employed this theoretical approach.

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Appendix A

Authors Year Journal Paper title Main discussion

Handfield e NicholsJr. 2004 IMM

Key issues in global supply basemanagement

Analysis of buyer organization efforts tomanage international suppliers base. Emphasison human factor to stablish a positiverelationship in order to reach superiorperformance

Ling­yee 2004 IMM

An examination of the foreign marketknowledge of exporting firms basedin the People's Republic of China: Itsdeterminants and effect on exportintensity

Conceptual framework of knowledge driversof foreign markets ­ Social Capital perspective

Kjellberg andHelgesson 2006 IMM

Multiple versions of markets: Multiplicity and performativity inmarket practice

Framework to analyse multitheoreticalinfluences of market analysis

Rinallo and Golfetto 2006 IMMRepresenting markets: The shapingof fashion trends by French andItalian fabric companies

Etnographic­descriptive paper ­ throughdifferent theoretical lens.

Bradley, Meyer andGao 2006 IMM

Use of supplier­customerrelationships by SMEs to enterforeign markets

SME and global suppliers development.

Brennan 2006 IMM Evolutionary economics and themarkets­as­networks approach

Compare market as network vs industrialmarketing and economic evolution

Azimont and Araujo 2007 IMMCategory reviews as market­shapingevents

Qualitative­descriptive approach: evaluatemeetings between makers, customers anddistribution

Möller and Rajala 2007 IMM Rise of strategic nets — New modesof value creation

Qualitative descriptive approach ­ typology ofbusiness networks creation

Mouzas, Hennebergand Naudé

2008 IMM Developing network insight Explores cognitives networks

Lukkari and Parvinen 2008 IMM

Pharmaceutical marketing throughthe customer portfolio: Institutionalinfluence and adaptation, IndustrialMarketing Management

Sugests that institutional descontinuitiesbalances entrepreunership and environment.

Westerlund andSvahn 2008 IMM

A relationship value perspective ofsocial capital in networks of softwareSMEs

Why some relationships are more importantthan others: Social Capital perspective

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Mouzas and Ford 2009 IMM The constitution of networks Analysis of networks and publicorganizations relationships

Paswan andWittmann

2009 IMM Knowledge management andfranchise systems

Franchising and its networks

Järvensivu andMöller

2009 IMM Metatheory of network management:A contingency perspective

Networks categories upon interorganizationalrelationships.

Cova, Prévot andSpencer

2010 IMM Navigating between dyads andnetworks,

Explores the unit of analysis on networksstudies: dyads or networks

Storbacka andNenonen 2011 IMM

Scripting markets: From valuepropositions to market propositions

Concept of perfect market should beinnapropriated for several studies. Co­criationand capabilities perspectives

Yang, Zhou andJiang

2011 IMM

When do formal control and trustmatter? A context­based analysis ofthe effects on marketing channelrelationships in China

Analysis of the role of ties, formal controlsand confidence.

Leung, Chan, Laiand Ngai 2011 IMM

An examination of the influence ofguanxi and xinyong (utilization ofpersonal trust) on negotiationoutcome in China: An old friendapproach

Chinese negotiation, cultural issues,internationalization challenges.

Lin, Huang, Lin andHsu

2011 IMM

How to manage strategic alliances inOEM­based industrial clusters:Network embeddedness and formalgovernance mechanisms

Formal mechanisms of governance andembeddedness of network.

Koufteros, Chengand Lai 2007 JOM

“Black­box” and “gray­box”supplier integration in productdevelopment: Antecedents,consequences and the moderatingrole of firm size

Antecents of byer supplier relationship ­exploration of suppliers embeddenesses.

Krause, Handfieldand Tyler

2007 JOM

The relationships between supplierdevelopment, commitment, socialcapital accumulation andperformance improvement

Long term commitment ­ Social Capitalperspective

Rabinovich,Knemeyer and Mayer 2007 JOM

Why do Internet commerce firmsincorporate logistics serviceproviders in their distributionchannels?: The role of transactioncosts and network strength

Buyer supplier relationshipt ­ ecommerce.TCT, Networks theory and Economicsociology

Oke, Idiagbon­Okeand Walumbwa

2008 JOM

The relationship between brokers’influence, strength of ties and NPDproject outcomes in innovation­drivenhorizontal networks

Power issues.

Liu,Luo and Liu 2009 JOM

Governing buyer–supplierrelationships through transactionaland relational mechanisms: Evidencefrom China

Matched survey ­ 225 buyer­supplier pais ­exploration of simultaneous use of TCT andsocio­relational perspective ­ Competitiveadvantage

Autry and Golicic 2010 JOMEvaluating buyer–supplierrelationship–performance spirals: Alongitudinal study

Longitudinal study: 323 relationships ­ Focus:cycle link and dynamics of relationship powerand performance (buyer­supplier)

Oke and Idiagbon­Oke

2010 JOM

Communication channels, innovationtasks and NPD project outcomes ininnovation­driven horizontalnetworks,

Evaluates innovation and communication bystudying power of relationship ties.

Wagner, Coley andLindemann

2011 JSCM

Effects of Suppliers’ reputation on thefuture of buyer­supplierrelationships: the mediating roles ofoutcome fairness and trust

Confidence on colaborative projects has astrong influence over future buyer supplierrelationships. Justice and reputation.

Structural embeddedness andStructural embeddedness alligned to suppliers

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Choi and Kim 2008 JSCM supplier management: a networkperspective.

setup as a key to supply networks, shouldsupport new guidelines to manage vendor listsin a proper way.

Buddress and Dass 2007 JSCM Evaluating Prospective e­Providers: An Empirical Study

Economic Sociology and RBV to identify,priorize and stablish criteria to userssatifaction. Cluster + ANOVA, sample of 103organizations.

Li and Choi 2009 JSCMTriads in services outsourcing:bridge, brigde decay and bridgetransfer

Manufacturing ­ buyer acts as a bridgebetween suppliers and customers. On servicefield, the relationship structures are different.

Hunt and Davis 2008 JSCM Grounding supply chain managementin resource­advantage theory

Explores if purchasing should be acompetitive advantage for a firm.

Ramalingam andRauh

2011 ManagementeScience

The Firm as a Socialization Device Framework to discuss market efficiency andcomparisson of the model within SE

Maurer, Bansal andCrossan

2011 OrganizationScience

Creating Economic Value ThroughSocial Values: Introducing aCulturally Informed Resource­BasedView

Economic Sociology + RBV to explaincultural elements and its impacts of firm value

Hirsch 2000 OrganizationScience

Cultural Industries Revisited Economic sociology to explain cultural issuesand business opportunities

Gulati, Sytch andTatarynowicz 2010

OrganizationScience

The Rise and Fall of Small Worlds:Exploring the Dynamics of SocialStructure

Exploration of social and economic issues oncolaboration networks creation and itsevolution

Ahuja, Soda andZaheer

2011 OrganizationScience

The Genesis and Dynamics of Organizational Networks

Networks dynamics discussion, roles, drivers,dimensions

Sytch, Tatarynowiczand Gulati 2011

OrganizationScience

Toward a Theory of ExtendedContact:The Incentives and Opportunities forBridgingAcross Network Communities

Exploram o conceito de redes e as conexõesentre os atores a partir de indústria detecnologia de 1991 a 2005.

Shipilov, Li andGreve 2011

OrganizationScience

The Prince and the Pauper: Searchand Brokerage in the Initiation ofStatus­Heterophilous Ties

Economic Sociology and Feedback Theory toexplain drivers to select network partners.

Bernades 2010 DecisionSciences

The effect of supply management onaspects of social capital and theimpact on performance: a socialnetwork perspective

Based on social networks perspectives, thisstudy explores relational embeddedness andinvestigates the role of management onprocess. Sample: 204 organizations

1 Universidade de Mogi das Cruzes. Brazil. E­mail: [email protected] Cristiane Biazzin Villar. Brazil. E­mail: [email protected]

Vol. 33 (9) 2012[Índice]

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