Strategic Networks’ Dynamics: Evidence of Member Firms’ Retention and Departures in Brazil

Abstract

Strategic Networks (SNs) have emerged as a prevalent organizational form that offers synergistic benefits to participating firms. Despite their potential, SNs often experience member firms’ departure, raising concerns about their long-term viability. This study explores the factors that influence firms’ decisions to exit SNs by examining the interplay between network maturity, member firms’ satisfaction, and their individual characteristics. Using data from 338 Brazilian firms involved in SNs, a cluster analysis was employed to identify distinct groups of firms based on shared attributes. The findings revealed a significant association between higher perceived maturity, greater satisfaction with SNs, and lower likelihood of departure. These results suggest that network leaders should prioritize cultivating a mature and satisfying SN environment to mitigate member exits. By identifying the critical distinctions between the remaining and departing firms, this study provides valuable insights for network managers seeking to strengthen the longevity and stability of their strategic partnerships.