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What Are the Useful Past Inter-Organizational Relationships (IORs) for Forming Complex IORs?

Abstract

Purpose: The purpose is to explore the relationship between prior and later inter-organizational relationships (IORs) by studying whether past experience can be leveraged on when forming new, more complex, IORs. Methodology: Participation in prior IORs is characterized in terms of both resource- transferring and resource-pooling IORs in home-country networks, while complex IORs are considered those with foreign partners. An empirical test on 366 Italian firms is performed using OLS with robust standard errors. Findings: Both resource-transferring and resource-pooling IORs have non-convergent effects. The former has controversial effects on the base of the position a firm occupies, that in turn affects the structure of interests between the partners. The latter has different effects in line with the information complexity of the objective of the relationship. Research Implications: Results provide support to the idea that structure of interests and information complexity represent \u201cdiscriminating characteristics\u201d that identify salient structural alternatives in the analysis of inter-firm organization. Practical Implications: The paper advances that firms can partially leverage on the exploitation of prior experience in settings that are explorative in nature, by carefully selecting within past experiences. Originality: A distinction between coordination \u201cgiving\u201d and coordination \u201ctaking\u201d IORs is proposed to discern among different types of inter-firm coordination forms

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