Interdependence between networks and member firms in the evolution of inter-organizational networks

Leander Luiz Klein,Breno Augusto Diniz Pereira

doi:10.1590/1679-395174636x

Abstract

Abstract Cooperation among firms through networks is a form to obtain a variety of resources. Over time, networks can become an exclusive provider of some resources used by members, leading to dependencys. This study is interested in this phenomenon, and aims to examine how firm-network interdependence grows throughout the development of inter-organizational networks. The research was conducted with networks that were in distinct stages of evolution (formation, development, and professionalization). Interviews were carried out with the presidents of the networks and two member firms of each network. The study identified an inversion in the relation of interdependence investigated, where the network is dependent of its members in the first stages of evolution and, as its governance and structure consolidate, members develop a dependency relationship toward the network and the benefits it offers.

Highlights

What motivates organizations to work together is the need to overcome the lack of resources, reduce market uncertainties, and take advantage of the opportunities that arise
Networks can provide a wide range of opportunities for the member firms to participate in activities that may complement their need for resources and generate benefits and organizational value
As inter-organizational networks evolve and become structured, these businesses can achieve a certain level of professionalization of their activities, providing unique advantages to the member companies, making them dependent on the network to which they belong. This is supported by Resource Dependence Theory, which states that organizations are in some part dependent on their environment, and they have to manage external resources (PFEFFER and SALANCIK, 1978)

Summary

Introduction

What motivates organizations to work together is the need to overcome the lack of resources, reduce market uncertainties, and take advantage of the opportunities that arise. The motivation of organizations to join and work together in networks is because they can increase resources, reduce the uncertainty of the market in which they are inserted, and seize opportunities In this sense, networks can provide a range of activities that can complement the interchangeable enterprise resource needs, provide benefits and organizational value to members (CENTENARO and LAIMER, 2017; DEBOÇÁ and MARTINS, 2015), and network synergy (HERNANDEZ and SHAVER, 2018). As inter-organizational networks evolve and become structured, these businesses can achieve a certain level of professionalization of their activities, providing unique advantages to the member companies, making them dependent on the network to which they belong This is supported by Resource Dependence Theory, which states that organizations are in some part dependent on their environment, and they have to manage external resources (PFEFFER and SALANCIK, 1978). No matter how autonomous an organization is, it will always require third-party resources (RIBEIRO and COLAUTO, 2016)

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