Social and institutional embeddedness and capabilities: the shoe industry of Nova Serrana

Abstract

This study investigates the influence of social and institutional embeddedness on the acquisition of business capabilities in the footwear industry, in its relationships with clients, suppliers and sector organizations. Social embeddedness was regarded from the perspective of relational embeddedness and institutional embeddedness, with regard to its sphere influence on the dynamic capabilities of firms and their degree of embeddedness vis-à-vis clients and suppliers. An examination was also carried out into the ties that firms have with other key actors who are non-participants of the sector, and the extent to which they exert an influence on the capabilities and involvement of the firms in the sector organizations. The data collection involved conducting esearch into 78 firms and structural equation modeling (SEM) was employed to evaluate the relationships being explored. The results show that the relationships of the firms with the suppliers and their involvement with the organizations are the most important factors in acquiring capabilities. The relationships with the clients and the other actors did not make any significant contribution to the acquisition of capabilities.