Drivers of network governance: a multitheoretic perspective with insights from case studies in the German wood industry

Abstract

Network-based collaboration has been identified as an important form of multi-organizational governance in advancing environmental sustainability, as it enables organizations to take full advantage of by-products and reusable materials while minimizing waste in the supply chain. Although previous research has identified various forms, dimensions, and architectures of networks addressing the reduction of environmental impacts, less is known about their emergence. Existing studies on networks in the context of sustainability benefit surprisingly little from the substantial literature on interorganizational collaboration, alliances, or networks. Therefore, this study explores drivers of network governance by combining explorative case studies with prior theorizing and drawing on various theoretical paradigms. Case studies have been conducted in the German wood industry, where the efficient utilization of by-products and the reuse of renewable raw material are essential and thus network-based collaboration is highly beneficial. The study identifies four major factors that seem to significantly affect the formation of interorganizational networks and further reveals contextual factors that are related to the effectiveness of network-based collaboration. Our results contribute to calls for integrating traditional network research into the field of networks that address environmental issues. The findings yield implications both for practice and policymakers as well as for future research on networks and sustainability.