Constructive and Destructive Dynamics of Value Creation in Temporary Collaborations

Abstract

While value creation in stable collaborations between organizations has been studied extensively, less attention has been given to the process of value creation in temporary collaborations. Drawing on the longitudinal study of a $71 million building project (“Green Building”), we provide a uniquely detailed study of value creation between organizations over three years using a combination of sociometric and qualitative analyses. We found that cooperation ties create greater value when the interorganizational network is highly dense. However, conflict ties create higher value when the interorganizational network is highly centralized. Our findings converge toward a general process of constructive and destructive dynamics of value creation. We extend the strategic management literature by theorizing value creation dynamics in temporary collaborations (i) as a process of both cooperation and conflict and (ii) moderated by network characteristics over time.