Organizations have diverse options to improve their performance. With the advances in ICT, several organizations attempt a technology-based solution by digitizing and automation. Indeed, to begin with, it is appropriate, but there are societal challenges. The theories available in the literature explain the reasons for certain societal challenges and actions, but there is also a constant expansion of the theories. This paper adds to the expansion by considering ICT innovations such as digitalization. The social, political, cultural, and economic entities in which organizations operate influence and get influenced by organizational responses. There are connections between organizations and entities; we can refer to these as embeddedness. The purpose of this paper is in identifying a framework and the types of embeddedness. The phenomenon, organizational embeddedness, requires observing it in its setting and is performed using a case study methodology. E-Governance interacts with various entities and provides diverse analytic and heuristic views; hence the author uses E-Governance cases from India. The developed framework assists organizations in providing inputs towards improving their internal complements. In doing so, organizations can not only better respond to societal challenges but also enable other entities in the environment to coevolve.