Abstract：Based on social network theory, this study investigates the impact of network structural embeddedness on interfirm relational governance. The research hypotheses are tested with multiple regression analysis method based on 288 survey samples from manufacturers. The results show that the network intensity of grouped distributors and the centrality of a distributor in the network respectively have positive effects on a manufacturer’s adoption of two relational governance behaviors, i.e., joint planning and joint problem solving, which in turn significantly affect the manufacturer’s perceived relationship quality. In addition, by conducting an ex-post analysis, we also find that the network intensity of grouped distributors and the centrality of the distributor in the network may have both a direct and indirect, through the relational governance, effect on the manufacturer’s perceived relationship quality.
