Market embeddedness and corporate instability: The ecology of inter-industrial networks

Ilan Talmud, Gustavo S. Mesch

Research output: Contribution to journalArticlepeer-review


This paper studies the effect of inter-industrial control on the survival of Israeli firms. It examines how relationsbetweenenvironments modify relationswithinenvironments. More specifically, this paper studies how the social organization of the competition at the aggregate level (industry) affects outcomes at the individual (firm) level. Using trade data and national accounts statistics, we specify and test the hypothesis that an industry's corporate instability is negatively associated with its social capital (comprised from its market embeddedness and political embeddedness). Our findings show that industry's corporate instability within industries is associated with the industry's structural embeddedness in the network of input-output transactions, the degree of control it has over its external transactions, and its political leverage.

Original languageEnglish
Pages (from-to)419-441
Number of pages23
JournalSocial Science Research
Issue number4
StatePublished - Dec 1997

Bibliographical note

Funding Information:
The first author thanks the Koret Foundation for financing the project. Both authors are grateful to Yitshak Haberfeld, Shin-Kap Han, Michael Harrison, Robert Faulkner, Vered Krauss, Haya Stier, and two anonymous reviewers for their valuable comments and suggestions. We appreciate the technical assistance provided by Bina Ben-Dor and Daphna Caspi.

ASJC Scopus subject areas

  • Education
  • Sociology and Political Science


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