Coping with Problems of Understanding in Interorganizational Relationships: Using Formalization as a Means to make Sense

Research into the management of interorganizational relationships has hitherto primarily focused on problems of coordination, control and to a lesser extent, legitimacy. In this article, we assert that partners cooperating in such relationships are also confronted with ‘problems of understanding’. Such problems arise from differences between partners in terms of culture, experience, structure and industry, and from the uncertainty and ambiguity that participants in interorganizational relationships experience in early stages of collaboration. Building on Karl Weick’s theory of sensemaking, we advance that participants in interorganizational relationships use formalization as a means to make sense of their partners, the interorganizational relationships in which they are engaged and the contexts in which these are embedded so as to diminish problems of understanding. We offer a systematic overview of the mechanisms through which formalization facilitates sensemaking, including: (1) focusing participants’ attention; (2) provoking articulation, deliberation and reflection; (3) instigating and maintaining interaction; and (4) reducing judgment errors and individual biases, and diminishing incompleteness and inconsistency of cognitive representations. In this way, the article contributes to a better understanding of the relationships between formalization and sensemaking in collaborative relationships, and it carries Karl Weick’s thinking on the relationship between sensemaking and organizing forward in the context of interorganizational management

Making Sense of Formalization in Interorganizational Relationships: Beyond Coordination and Control

Paul W.L. Vlaar (Obdam, January 4, 1978) obtained his M.Sc. degree in Economics (Cum Laude) from Wageningen University, The Netherlands. He is currently an assistant professor of strategic management at RSM Erasmus University. His research interests include interorganizational cooperation, crossdisciplinary initiatives focusing on organizational structuring and design processes, new business development, and strategic change. His research has been published or is forthcoming in the European Management Journal, several edited books by Elsevier and Palgrave, and the Maandblad voor Accountancy en Bedrijfskunde (Dutch). He currently serves as an ad-hoc reviewer for the Strategic Management Journal and he has presented his research at major international conferences, such as those of the Academy of Management and the Strategic Management Society.Strategic alliances, buyer-supplier relationships, joint ventures and other forms of interorganizational cooperation are of increasing importance for the competitive advantage of organizations. Formalization – in the form of contracts, rules and procedures – is considered to be a crucial factor for these relationships. Nevertheless, an integrative framework of its role in interorganizational relationships has hitherto remained absent in the literature. Drawing on conceptual developments, an in-depth case study and survey data, this study provides such an integrative framework. Six main research findings emerge. First, tensions between the need and the ability to formalize can be reduced by investing in information processing and sensemaking. Second, formalization has functions beyond coordination and control, such as increasing legitimacy and enabling sensemaking. Third, managers are not only occupied with the “right” degree of formalization, but also with managing tensions between the functions and dysfunctions of formalization. Fourth, when formalization is accompanied by standardization, its contribution to interorganizational performance declines, due to lower degrees of “mindfulness” by contracting parties. Fifth, interorganizational performance is highly dependent upon the levels of formalization and trust at the start of relationships, with intermediary levels of both governance forms exhibiting more positive effects than extreme levels. Finally, formalization is substituted and complemented by other governance mechanisms, requiring partners to consider portfolios of mechanisms when deciding on formalization. These findings and the integral framework to which they are connected suggests that researchers and practitioners should regard formalization from multiple disciplines, theories and perspectives. They enrich their understanding of its role in interorganizational relationships, and enable them to utilize formalization so that it contributes to performance.Strategische allianties, klant-leverancier relaties, joint ventures en andere vormen van interorganisatorische samenwerking zijn van toenemend belang voor het concurrentievermogen van ondernemingen. Formalisering – in de vorm van contracten, regels en procedures – wordt beschouwd als een cruciale factor voor het slagen van dergelijke relaties. Desondanks bestaat er in de literatuur tot op heden geen integraal raamwerk dat de rol van formalisering in interorganisatorische relaties beschrijft. Op basis van conceptuele ontwikkelingen, een case studie en enquêtes, voorziet deze studie in een dergelijk raamwerk. De studie leidt tot zes kernbevindingen. Ten eerste kunnen spanningen tussen de behoefte en de mogelijkheid tot formalisering worden gereduceerd door te investeren in informatieverwerking en zingeving. Ten tweede functioneert formalisering niet alleen als middel om coördinatie en beheersing te bewerkstelligen, maar ook als een mechanisme ten behoeve van legitimatie en zingeving. Ten derde zijn managers niet alleen gericht op de “juiste” mate van formalisering, maar ook op het managen van de spanningen tussen de functies en disfuncties van formalisering. Ten vierde wordt de functionaliteit van formalisering in interorganisatorische relaties sterk gereduceerd door het gebruik van standaardprocedures voor onderhandelings- en contracteringsprocessen, omdat dit een lagere mate van “mindfulness” van contractpartijen met zich meebrengt. Ten vijfde zijn interorganisatorische prestaties sterk afhankelijk van initiële niveaus van formalisering en vertrouwen, waarbij intermediaire niveaus van beide beheersingsvormen een positievere invloed hebben op interorganisatorische prestaties dan extreme niveaus. Ten slotte blijkt dat formalisering wordt gesubstitueerd en gecomplementeerd door andere mechanismen. Deze bevindingen en het integrale raamwerk waaraan ze zijn verbonden, geven aan dat onderzoekers en managers formalisering vanuit meerdere disciplines, theorieën en perspectieven dienen te beschouwen. Ze verrijken ons begrip van de rol die formalisering inneemt in interorganisatorische relaties en zorgen ervoor dat formalisering zo wordt ingezet dat het bijdraagt aan interorganisatorische prestaties

Required IT-Related Capabilities For The Utilization of New Opportunities in Creating Interorganizational Competitive Advantage

Developments in information technology (IT) are perceived to promote interorganizational cooperation within and across industry boundaries. IT-enabled cooperation has challenged the creation of interorganizational competitive advantages, as conceptualized in the Relational View (e.g., Dyer and Singh, 1998). The relationship between IT and the conversion of inter-firm value-creating opportunities into interorganizational competitive advantage is still unclear. In this paper, we have developed a conceptual framework regarding the relationship between IT and interorganizational resource complementarity, which is an important determinant of interorganizational competitive advantage. Our analysis suggests that cooperating organizations need to develop three distinctive but interrelated capabilities in order to effectuate interorganizational resource complementarity with regard to IT. We propose that these capabilities form a pre-condition for achieving interorganizational competitive advantage by means of IT-enabled interorganizational relationships. Preliminary support for our framework and proposition is provided by a case study of an interorganizational relationship between a large European financial services firm and a major European telecommunication firm

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

Understanding Online Reverse Auction Determinants of Use: A Multi-Stakeholder Case Study

Various interorganizational systems (IOS) such as Electronic Data Interchange (EDI) and Supply Chain Management Systems (SCMS) have attracted significant attention among information system (IS) researchers. However, IS scholars have taken less interest in Online Reverse Auctions (ORAs), a widely used IOS in online business-to-business transactions. This study examines the factors that enable and/or inhibit ORA use from the perspective of buyers and suppliers, as well as the potential role of the institutional context based on a case study of a French retailer. Building on 122 semi-structured interviews collected in two stages with various stakeholders from the interorganizational community (buyers, suppliers and technology initiators), we demonstrate the extent to which the determinants of ORA use differ between buyers and suppliers (e.g. perceived outcomes, capabilities required to use ORAs). We then show how a change in the institutional context not only failed to redress distrust between buyers and suppliers, but also created new barriers to ORA use by introducing controls and sanctions that outweighed the economic benefits of ORA use among buyers. We contribute to the IS literature by demonstrating the role of strategic capabilities in shaping use. While the IS literature acknowledges the institutional context as a determinant of use, little is known about the extent to which a change in the institutional context may affect ORA use. Our research shows the extent to which legislation can trigger IT discontinuance because of the perceived risk introduced

Soluble urokinase-type plasminogen activator receptor levels in patients with burn injuries and inhalation trauma requiring mechanical ventilation: an observational cohort study

Soluble urokinase-type plasminogen activator receptor (suPAR) has been proposed as a biologic marker of fibrinolysis and inflammation. The aim of this study was to investigate the diagnostic and prognostic value of systemic and pulmonary levels of suPAR in burn patients with inhalation trauma who need mechanical ventilation. suPAR was measured in plasma and nondirected lung-lavage fluid of mechanically ventilated burn patients with inhalation trauma. The samples were obtained on the day of inhalation trauma and on alternate days thereafter until patients were completely weaned from the mechanical ventilator. Mechanically ventilated patients without burns and without pulmonary disease served as controls. Systemic levels of suPAR in burn patients with inhalation trauma were not different from those in control patients. On admission and follow up, pulmonary levels of suPAR in patients with inhalation trauma were significantly higher compared with controls. Pulmonary levels of suPAR highly correlated with pulmonary levels of interleukin 6, a marker of inflammation, and thrombin-antithrombin complexes, markers of coagulation, but not plasminogen activator activity, a marker of fibrinolysis. Systemic levels of suPAR were predictive of the duration of mechanical ventilation and length of intensive care unit (ICU) stay. Duration of mechanical ventilation and length of ICU stay were significantly longer in burn-injury patients with systemic suPAR levels > 9.5 ng/ml. Pulmonary levels of suPAR are elevated in burn patients with inhalation trauma, and they correlate with pulmonary inflammation and coagulation. Although pulmonary levels of suPAR may have diagnostic value in burn-injury patients, systemic levels of suPAR have prognostic valu

Outcome and Predictors for Mortality in Patients with Cardiogenic Shock:A Dutch Nationwide Registry-Based Study of 75,407 Patients with Acute Coronary Syndrome Treated by PCI

It is important to gain more insight into the cardiogenic shock (CS) population, as currently, little is known on how to improve outcomes. Therefore, we assessed clinical outcome in acute coronary syndrome (ACS) patients treated by percutaneous coronary intervention (PCI) with and without CS at admission. Furthermore, the incidence of CS and predictors for mortality in CS patients were evaluated. The Netherlands Heart Registration (NHR) is a nationwide registry on all cardiac interventions. We used NHR data of ACS patients treated with PCI between 2015 and 2019. Among 75,407 ACS patients treated with PCI, 3028 patients (4.1%) were identified with CS, respectively 4.3%, 3.9%, 3.5%, and 4.3% per year. Factors associated with mortality in CS were age (HR 1.02, 95%CI 1.02-1.03), eGFR (HR 0.98, 95%CI 0.98-0.99), diabetes mellitus (DM) (HR 1.25, 95%CI 1.08-1.45), multivessel disease (HR 1.22, 95%CI 1.06-1.39), prior myocardial infarction (MI) (HR 1.24, 95%CI 1.06-1.45), and out-of-hospital cardiac arrest (OHCA) (HR 1.71, 95%CI 1.50-1.94). In conclusion, in this Dutch nationwide registry-based study of ACS patients treated by PCI, the incidence of CS was 4.1% over the 4-year study period. Predictors for mortality in CS were higher age, renal insufficiency, presence of DM, multivessel disease, prior MI, and OHCA

Effects of Blood Products on Inflammatory Response in Endothelial Cells In Vitro

BACKGROUND: Transfusing blood products may induce inflammatory reactions within the vascular compartment potentially leading to a systemic inflammatory response. Experiments were designed to assess the inflammatory potential of different blood products in an endothelial cell-based in vitro model and to compare baseline levels of potentially activating substances in transfusion products. METHODS: The inflammatory response from pre-activated (endotoxin-stimulated) and non-activated endothelial cells as well as neutrophil endothelial transmigration in response to packed red blood cells (PRBC), platelet concentrates (PC) and fresh frozen plasma (FFP) was determined. Baseline inflammatory mediator and lipid concentrations in blood products were evaluated. RESULTS: Following incubation with all blood products, an increased inflammatory mediator release from endothelial cells was observed. Platelet concentrates, and to a lesser extent also FFP, caused the most pronounced response, which was accentuated in already pre-stimulated endothelial cells. Inflammatory response of endothelial cells as well as blood product-induced migration of neutrophils through the endothelium was in good agreement with the lipid content of the according blood product. CONCLUSION: Within the group of different blood transfusion products both PC and FFP have a high inflammatory potential with regard to activation of endothelial cells. Inflammation upon blood product exposure is strongly accentuated when endothelial cells are pre-injured. High lipid contents in the respective blood products goes along with an accentuated inflammatory reaction from endothelial cells

Cost Analysis From a Randomized Comparison of Immediate Versus Delayed Angiography After Cardiac Arrest

Background In patients with out‐of‐hospital cardiac arrest without ST‐segment elevation, immediate coronary angiography did not improve clinical outcomes when compared with delayed angiography in the COACT (Coronary Angiography After Cardiac Arrest) trial. Whether 1 of the 2 strategies has benefits in terms of health care resource use and costs is currently unknown. We assess the health care resource use and costs in patients with out‐of‐hospital cardiac arrest. Methods and Results A total of 538 patients were randomly assigned to a strategy of either immediate or delayed coronary angiography. Detailed health care resource use and cost‐prices were collected from the initial hospital episode. A generalized linear model and a gamma distribution were performed. Generic quality of life was measured with the RAND‐36 and collected at 12‐month follow‐up. Overall total mean costs were similar between both groups (EUR 33 575±19 612 versus EUR 33 880±21 044; P=0.86). Generalized linear model: (β, 0.991; 95% CI, 0.894–1.099; P=0.86). Mean procedural costs (coronary angiography and percutaneous coronary intervention, coronary artery bypass graft) were higher in the immediate angiography group (EUR 4384±3447 versus EUR 3028±4220; P<0.001). Costs concerning intensive care unit and ward stay did not show any significant difference. The RAND‐36 questionnaire did not differ between both groups. Conclusions The mean total costs between patients with out‐of‐hospital cardiac arrest randomly assigned to an immediate angiography or a delayed invasive strategy were similar during the initial hospital stay. With respect to the higher invasive procedure costs in the immediate group, a strategy awaiting neurological recovery followed by coronary angiography and planned revascularization may be considered. Registration URL: https://trialregister.nl; Unique identifier: NL4857

Sex differences in patients with out-of-hospital cardiac arrest without ST-segment elevation:A COACT trial substudy

Background: Whether sex is associated with outcomes of out-of-hospital cardiac arrest (OHCA) is unclear. Objectives: This study examined sex differences in survival in patients with OHCA without ST-segment elevation myocardial infarction (STEMI). Methods: Using data from the randomized controlled Coronary Angiography after Cardiac Arrest (COACT) trial, the primary point of interest was sex differences in OHCA-related one-year survival. Secondary points of interest included the benefit of immediate coronary angiography compared to delayed angiography until after neurologic recovery, angiographic and clinical outcomes. Results: In total, 522 patients (79.1% men) were included. Overall one-year survival was 59.6% in women and 63.4% in men (HR 1.18; 95% CI: 0.761.81;p = 0.47). No cardiovascular risk factors were found that modified survival. Women less often had significant coronary artery disease (CAD) (37.0% vs. 71.3%; p < 0.001), but when present, they had a worse prognosis than women without CAD (HR 3.06; 95% CI 1.31-7.19; p = 0.01). This was not the case for men (HR 1.05; 95% CI 0.67-1.65; p = 0.83). In both sexes, immediate coronary angiography did not improve one-year survival compared to delayed angiography (women, odds ratio (OR) 0.87; 95% CI 0.58-1.30;p = 0.49; vs. men, OR 0.97; 95% CI 0.45-2.09; p = 0.93). Conclusion: In OHCA patients without STEMI, we found no sex differences in overall one-year survival. Women less often had significant CAD, but when CAD was present they had worse survival than women without CAD. This was not the case for men. Both sexes did not benefit from a strategy of immediate coronary angiography as compared to delayed strategy with respect to one-year survival