Heterarchical Coordination in Inter-organizational Networks: Evidence from the Tourism Industry

Abstract

Purpose – The aim of this paper is to report the results of a qualitative research on heterarchical coordination within an interorganizational network in the tourism sector. Design/Methodology/Approach – The study follows the qualitative approach and case study research design. The main data collection techniques were semi-structured interviews and document analysis. Data triangulation was used to collect and analyze qualitative research data and narrative form supported the presentation of the results. Findings – The study has shown the nature, strengths and weaknesses of heterarchical coordination within the distributed inter-firm network. Based on the study, heterarchy is an appropriate form of coordination for distributed inter-firm networks with a high proportion of SMEs operating in the tourism sector. Heterarchy supports a high level of engagement of focal firms in joint activities and emergent growth of the whole community. Originality of the research – The study brings a new overview of coordination mechanisms in interfirm networks and identifies the characteristics and conditions of heterarchical coordination in a distributed cooperative network. The results of the study are useful for scholars studying business networks as well as for managers and local authorities responsible for managing and supporting inter-firm networks in tourism destinations.