Virtually Embedded Ties

The Internet and other communication and information technologies have not only increased the efficiency and effectiveness of existing forms of interorganizational connection, but have also made possible the emergence of a new form – “virtually embedded ties”. Such ties have two essential features: first, they utilize electronic communication and information technologies; second, the use of those technologies allows them to overcome the exchange-related problems previously addressed through the formation of socially embedded ties. We argue that virtually embedded ties offer an important alternative to socially embedded ties in industries that are characterized by high levels of dynamism.