Project-based Organization's Network Embeddedness and Project Performance

Abstract

Abstract: No consensus has been reached regarding the impact of network embeddedness on performance. We use the context of project-based organization to further discuss this relationship and its mechanism. This study uses the data of Chinese film industry from 2000 to 2015 to study the impact of team network embeddedness on project performance. Results show that the relationship between project team network centrality and project performance is an inverted U-shaped curve. Moreover, two different main networks, expert network (team) and firm network (production firm and distribution firm), where a project is embedded have a substitution effect, and firms' network centrality negatively moderates the effect of team centrality on project performance. Project heterogeneity (movie types) positively moderates the effect of team network centrality on project performance. This paper enriches the literature of network embeddedness and project-based organization. It not only discusses the "embeddedness paradox", but also studies the impact of dual network embeddedness on performance from the perspective of different acting subjects. It expands the analysis framework in comparison with traditional dual network embeddedness that focuses only on different environments. It also enriches the theoretical boundary of project network by discussing the attributes of the project itself. This special organizational form of project-based organization provides theoretical support and practical guidance.

Key words: network embeddedness, dual embeddedness, project performance, project heterogeneity

Dong Meichen, Jiao Jie, Zhang Si. Project-based Organization's Network Embeddedness and Project Performance[J]. Management Review, 2022, 34(6): 257-267.

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