Clients’ outcomes from providers’ networks: the role of relational exclusivity and complementary capabilities

Denis Trapido,Alessandro Lomi,Francesca Pallotti

doi:10.21307/connections-2019.011

Denis Trapido, Alessandro Lomi + Show 1 more

Open Access

https://doi.org/10.21307/connections-2019.011

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Abstract

Abstract Organizations have leeway in how much they employ their network relations to the benefit of their clients. When do they do so more rather than less? Relying on research on trust and knowledge absorption, the authors suggest that providers’ network relations generate better outcomes for their clients when these relations are concentrated in a limited, exclusive set of partners. The authors argue that providers’ relational exclusivity benefits clients because it facilitates the awareness and use of partners’ complementary client service capabilities. An analysis of a regional network of patient referrals among 110 hospitals supported this argument. The study highlights the role of interorganizational partnership networks in activating client service capabilities and stimulates further inquiry into providers’ network features that benefit the users of their services.

Highlights

The implications of interorganizational collaboration networks for the benefit of the users of organizations’ offerings − variously called consumers, clients, cus tomers or patrons − are puzzlingly variable
We build on the fundamental insight of organizational network theory that organizational outcomes depend on features of interorganizational partnership networks (Borgatti and Halgin, 2011; Powell et al, 1999; Uzzi 1996, 1997)
Building on theories of trust and knowledge absorption, we argue that relational exclusivity is a feature of providers’ ego networks that improves their capability to benefit clients: providers’ partnerships produce better outcomes for their clients when they connect to their partnership network through selected, exclusive relations

Summary

Introduction

The implications of interorganizational collaboration networks for the benefit of the users of organizations’ offerings − variously called consumers, clients, cus tomers or patrons − are puzzlingly variable. We test the effects of referral network features on the benefits that patients derive from being routed toward providers of better care. We argued that relational exclusivity unlocks the potential of partnering orga nizations to benefit clients because it improves their knowledge and use of network partners’ complementary client service capabilities.

Results

Conclusion