Network Governance at the Firm and Network Level: Goals, Routines, and Social Mechanisms

This article contributes to the general understanding of governance in networks and the achievement of private and common goals. Integrating transaction costs and social network theory, a simple integrated framework is provided for understanding why firms collaborate and under which conditions they establish durable networks that succeed in achieving goals. Network theory is extended by explicitly distinguishing between firm and network level governance, and by identifying governance mechanisms that adapt, coordinate, and safeguard customized exchanges. This way issues as how networks evolve, how they are governed, and ultimately, how collective outcomes might be generated can be better comprehended. This is especially relevant to policy planners and those having a perspective that goes beyond the performance of individual organizations.network governance, social network theory, governance mechanisms., Food Consumption/Nutrition/Food Safety, Food Security and Poverty, Industrial Organization, Research Methods/ Statistical Methods,

Leveraging Open-standard Interorganizational Information Systems for Process Adaptability and Alignment: An Empirical Analysis

PurposeThe purpose of this paper is to understand the value creation mechanisms of open-standard inter-organizational information system (OSIOS), which is a key technology to achieve Industry 4.0. Specifically, this study investigates how the internal assimilation and external diffusion of OSIOS help manufactures facilitate process adaptability and alignment in supply chain network.Design/methodology/approachA survey instrument was designed and administrated to collect data for this research. Using three-stage least squares estimation, the authors empirically tested a number of hypothesized relationships based on a sample of 308 manufacturing firms in China.FindingsThe results of the study show that OSIOS can perform as value creation mechanisms to enable process adaptability and alignment. In addition, the impact of OSIOS internal assimilation is inversely U-shaped where the positive effect on process adaptability will become negative after an extremum point is reached.Originality/valueThis study contributes to the existing literature by providing insights on how OSIOS can improve supply chain integration and thus promote the achievement of industry 4.0. By revealing a U-shaped relationship between OSIOS assimilation and process adaptability, this study fills previous research gap by advancing the understanding on the value creation mechanisms of information systems deployment

Value appropriation in business exchange: literature review and future research opportunities

Purpose – Value appropriation is a central, yet neglected aspect in business exchange research. The purpose of the paper is to generate an overview of research on active value appropriation in business exchange and provide the foundation for further research into value appropriation, as well as some initial guidance for managers. Design/methodology/approach – Literatures investigating value appropriation were identified by the means of a systematic review of the overall management literature. Findings – The authors provide an overview and comparison of the literatures and find that they apply diverse understandings of the value appropriation process and emphasize different mechanisms and outcomes of value appropriation. Research limitations/implications – Based on the literature comparison and discussion, in combination with inspiration from alternative business exchange literature, the authors propose four areas with high potential for future research into value appropriation: network position effects, appropriation acts and behaviors, buyer-seller relationship effects, and appropriation over time. Practical implications – Boundary spanning managers acting in industrial markets must master the difficult balance between value creation and appropriation. This review has provided an overview of the many managerial options for value appropriation and created knowledge on the effects of the various appropriation mechanisms enabling managers to secure company rents while not jeopardizing value creation. Originality/value – To the authors’ knowledge, this paper represents the first attempt at reviewing the management literature on value appropriation in business exchange. The authors provide overview, details, comparisons, and frame a research agenda as a first step towards establishing value appropriation as a key phenomenon in business exchange research.Chris Ellegaard, Christopher J. Medlin, Jens Geersbr

Roles played by relational trust in strategic alliances

In this paper we develop the concept of relational quality as a proxy for relational trust. Exploration of data from 67 alliances confirms that relational quality is composed of three elements: initial conditions, partner interactions, and external events. We offer propositions on the relative importance of each of these elements depending on the different roles relational trust may play in strategic alliances: the role of a control mechanism, of a governance mechanism, or as an enabler of high risk initiativesManagement; Strategy

The Interorganizational Dynamics of Brand Alliances.

The objective of the research is to put in evidence the interorganizational dynamics of brand alliances. More specifically the aim of the paper is to identify the business-to-business interactions within brand alliances through the governance adaptations that occur during a period of time. We show that these governance adaptations result from external (competitive pressure, value perception by consumers and customers) as well as internal forces (objectives and expectations of the partners, network positions, resources of the partners). Consequently the level of stability in the long run of brand alliances can be linked to organizational factors. To do our demonstration we propose an analytical framework that combines IMP concepts with theoretical works on dynamics of strategic alliances. The methodology follows the case study approach, with an empirical application to two examples of brand alliances: a certification brand with a banana brand on the Fair Trade market, and an association brand with a processed pork brand on the health food market.Relations interorganisationnelles; Gouvernance d'entreprise; Marque; Value; Brand Alliances;

Alliance contractual design

Our purpose in this paper is to provide an overview of what we know about alliance contracts. After a short introduction to the contents of alliance contracts, we start by contrasting alliance contractual form and governance form. Next, we focus on two related constructs: contractual complexity and contractual completeness. We suggest that contractual complexity is a more adequate construct to investigate in the absence of information about the transaction contemplated in the contract. After that, we present the measures of contractual complexity used in past studies. Then, we go over the determinants of contractual complexity by considering their influence on contracting costs and benefits given environmental and behavioral uncertainty. Conclusions and suggestions for research are offered at the end.alliance contracts; collaborative relationships; contractual complexity; strategic alliances; cooperation; joint ventures;

On the Evolution of Trust, Distrust, and Formal Coordination and Control in Interorganizational Relationships: Towards an Integrative Framework

In this article, we discuss the evolution of trust, distrust, and formal coordination and control in interorganizational relationships. We suggest that the degrees to which managers trust and distrust their partners during initial stages of cooperation leave strong imprints on the development of these relationships in later stages of collaboration. This derives from the impact of trust and distrust on: (1) formal coordination and control; (2) interorganizational performance; and (3) the interpretations that managers attribute to the behavior of their partners. Collectively, our arguments give rise to a conceptual framework, which indicates that there is a high propensity for interorganizational relationships to develop along vicious or virtuous cycles. By integrating and reconciling previous work on the trust-control nexus, and by emphasizing the dynamics associated with it, the article contributes to a more comprehensive and refined understanding of the evolution of interorganizational cooperation.evolution;trust;distrust;formal coordination;interorganizational relationship;formal control

Network and firm antecedents of spin-offs: Motherhooding spin-offs

We advance firm and network conditions that are favorable for the gestation of new spin-offs by entrepreneurial employees that exit the mother firm to constitute their own companies. This type of entrepreneurial activity has some unique characteristics. We suggest that spin-offs from certain parent firms have fundamental network benefits that increase their likelihood of survival and success. These benefits accrue on the form of social resources and a unique embeddedness in networks of other offspring and mother firms, and do not require the spin-offs to engage in any direct exchanges with the parent firm. The process which we call 'motherhood' highlights the potential for a mother-progeny and child-child model that promotes entrepreneurial action through spin-offs, and allow us to understand the conditions under which interorganizational networks of firms emerge and thrive as an entrepreneurial process. We conclude that considering a motherhood process, with the characteristics defined in this paper, contributes to the study of entrepreneurship and network evolution.Entrepreneurship, spin-offs, motherhood, network benefits

Boundaryless Management - Creating, transforming and using knowledge in inter-organizational collaboration. A literature review

Current literature on organizations often argues that firms are becoming increasingly dependent on knowledge residing outside their own boundaries requiring organizations to increase their entrepreneurial abilities and make their boundaries more flexible and permeable. This paper reviews the literature on what might be called interorganizational knowledge work. Implied in this focus is an assumption of clear organizaitonal boundaries. Rather than taking these boundaries and their importance for granted, the current review, however, aims at relativizing these boundaries. By focusing the empirical phenomenon of collaboration between individuals in different organizations, four different streams of literature with different constructions of the organizational boundary and its importance were identified: the literature on learning in alliances and joint ventures, the literature on collaboration in industrial networks, the literature on social networks and communities of practice and finally the literature on geographical clusters and innovation systems. The above four streams of the literature are reviewed with a special focus on the following three questions: 1. What is the role of (organizational) boundaries in interorganizational knowledge work? 2. What do we know about how these boundaries can be overcome? 3. What are the implications for managing interorganizational knowledge work spelled out in the literature?Interorganizational collaboration; Knowledge Management; Literature review