Governance and Effectiveness of Multi-Organizational Collaborations

Abstract

Despite increased use of multi-organizational collaborations, ambiguity remains regarding how to organize inter-organizational coordination within such arrangements. Specifically, whereas the so-called control approach suggests that coordination between organizations is best achieved through formalization and centralization, the alternative collaborative approach suggests that informal and lateral coordination is most effective. This study aims to address this ambiguity by examining six-year longitudinal performance of a multi-organizational collaboration that had shifted from a control towards a collaborative approach. Results indicated that performance of the multi-organizational collaboration significantly increased after the shift towards a collaborative approach, as compared with a multi-organizational collaboration that had consistently maintained a control approach during the same period. Findings from interviews with key informants suggested that the collaborative approach improved multi-organizational performance through enabling flexible, contingency-based coordination mechanisms, as well as through improving members’ understanding of the inter-organizational working environment.