Inclusive innovation, a relatively new term emerging in the last decade, commonly refers to any innovation for poor and otherwise excluded members of society. This study extends earlier research on network pictures by better understanding the views of network surroundings by involved actors. This may undermine the capability to see prospective partners, the benefits of establishing diverse relationships, and the opportunities embedded in networks. We substantiate the gap arising from the managers' network perception insofar as exploiting the potential of network strategies is concerned. We find support for the concern expressed in previous studies that managers may be narrowing the number and diversity of relevant actors to manageable levels, making their extended network largely invisible. Our data suggest that managers rate vertical relationships along the supply chain much higher as compared to the value network, and direct relationships much higher as compared to indirect ones. We have identified a network myopia phenomenon, that is a narrow view of relevant actors and relationships in the firm's network environment. We scrutinize a random sample of 305 Polish logistics services firms in order to capture the managers' perception of direct and indirect relationships. The purpose of the paper is to examine the perception of network surroundings by managers. Joyce (eds.) Perspectives on Organization Design and Behavior, John Wiley: New York. (1981) ‘The markets and hierarchies program of research: origins, implications, prospects’, in A.E. (1994) ‘Differentiated fit and shared values: alternatives for managing headquarters-subsidiary relations’, Strategic Management Journal 15(6): 491–502. (2004) ‘Is knowledge power? Knowledge flows, subsidiary power and rent-seeking within MNCs’, Journal of International Business Studies 35(5): 385–406. (1989) Managing the Internationalization Process: The Swedish Case, Routledge: London. Ram Mudambi JIBS Book Review Editor References Forsgren, M. Charles Dhanaraj's critical review provides an excellent dissection of the book, highlighting its pioneering aspects and linking it to methodologically rigorous mainstream research in management and sociology. It demonstrates that the Uppsala school remains fecund – a continuing source of new ideas on the cutting edge of IB research. The current book sheds further light on the politics of the MNE by developing and extending the notion of embeddedness. The network view of the MNE, built up over the years by the Uppsala school, is based on the essential recognition of the political aspects of the MNE, that is, ‘the political perspective stresses the fact that a great deal of the market knowledge … so important in explaining the internationalization process is controlled by subsidiaries rather than by the parent company’ (Forsgren, 1989).

Thus, the resulting organization and control structures of MNEs are the outcome of political processes where ‘power explains results when the organization sacrifices efficiency to serve special interests’ (Williamson and Ouchi, 1981). Further, horizontal competition among subsidiaries intent on promoting their own strategic agendas within the MNE results in internecine competition over resources and consequent rents (Mudambi and Navarra, 2004).

Efficient organizational structures based on Coasian transaction costs often run afoul of individual or sub-unit goals, resulting in vertical conflicts between headquarters and subsidiaries (Nohria and Ghoshal, 1994). It has long been recognized that controlling complex organizations like multinational enterprises (MNEs) is a multi-dimensional problem.

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