Formation Of Interorganizational Networks Research Articles

A model of inter-organizational network formation

How do inter-organizational networks emerge? We address this question using an equilibrium framework where firms' decisions to form links with other firms are modeled as a strategic game. In this game, firms weigh the costs and benefits of establishing a relationship with other firms and form ties if their net payoffs are positive. We characterize the equilibrium networks as exponential random graphs (ERGM), and we estimate the firms' payoffs using a Bayesian approach. We apply the framework to a co-investment network of venture capital firms in the medical device industry, providing economic interpretations ERGM parameter estimates. We learn that firms rely on their joint partners (transitivity) and prefer to form ties with firms similar to themselves (homophily). These results hold after controlling for the interdependence among ties. Our structural approach allows us to simulate the effects of economic shocks or policy counterfactuals. We test two such policy shocks, namely, firm entry and regulatory change. We show that while entry of few firms does not have meaningful effects on the shape of the network, a regulatory shock of minimum capital requirements increases the co-investment network's density and clustering.

The impact of emotional intelligence, cross-functional teams and interorganizational networks on operational effectiveness

PurposeThis article aims to examine the influence of emotional intelligence on cross-functional teams, the formation of interorganizational networks and the impact of all three dimensions on operational effectiveness.Design/methodology/approachThe analysis was based on 250 valid questionnaires collected from organizations in the Valle del Cauca region in Colombia in the service sector. The variables were analyzed using structural equation modeling to identify their relationships.FindingsThe results suggest that emotional intelligence contributes to establishing cross-functional teams but does not impact the development of interorganizational networks, influencing operational effectiveness only indirectly through the cross-functional teams. Contrary to what the literature suggests, interorganizational networks do not influence the operational effectiveness of organizations. Hence, in the pursuit of competitive advantage, companies in the studied region should encourage the creation of cross-functional teams within their organizations to maximize the returns received through the optimization of operational effectiveness.Practical implicationsOrganizations are comprised of individuals whose emotional intelligence competencies and abilities enable them to form effective cross-functional teams. Furthermore, cross-functional teams that effectively establish relationships with other organizations are frequently employed in global, interorganizational collaboration environments like joint ventures and alliances. Cross-functional teams that fulfill their aims have the potential to benefit the organization's performance by boosting operational effectiveness and, therefore, its competitiveness.Originality/valueThe value of this article lies in providing a better understanding of the capabilities and strategies of organizations in the construction of interorganizational networks intended to improve their competitiveness. However, before operational effectiveness and a sustainable competitive advantage can be achieved, the role of the individuals comprising the cross-functional teams should be managed through the appropriate application of the concepts of emotional intelligence.

A model of inter-organizational network formation

How do inter-organizational networks emerge? Accounting for interdependence among ties while studying tie formation is one of the key challenges in this area of research. We address this challenge using an equilibrium framework where firms' decisions to form links with other firms are modeled as a strategic game. In this game, firms weigh the costs and benefits of establishing a relationship with other firms and form ties if their net payoffs are positive. We characterize the equilibrium networks as exponential random graphs (ERGM), and we estimate the firms' payoffs using a Bayesian approach. To demonstrate the usefulness of our approach, we apply the framework to a co-investment network of venture capital firms in the medical device industry. The equilibrium framework allows researchers to draw economic interpretation from parameter estimates of the ERGM Model. We learn that firms rely on their joint partners (transitivity) and prefer to form ties with firms similar to themselves (homophily). These results hold after controlling for the interdependence among ties. Another, critical advantage of a structural approach is that it allows us to simulate the effects of economic shocks or policy counterfactuals. We test two such policy shocks, namely, firm entry and regulatory change. We show how new firms' entry or a regulatory shock of minimum capital requirements increase the co-investment network's density and clustering.

Governance of interorganizational health emergency networks: Facing the Zika pandemic

AbstractGlobal health is on the threshold of a new era, facing major threats such as infections, non‐communicable diseases, and the challenges of globalization itself (the effects of climate change, trade policies on health), in a multifaceted global context of diverse societies, norms, values, interests, and inequalities.However, facing the challenges presented by health crises requires high volumes of financial and human resources, and cooperation efforts between different actors, which makes the challenge even more complex for developing countries. In this context, the formation of interorganizational networks, involving individuals and public and private organizations, is fundamental to face various outbreaks.This study, based on the case of the Zika virus outbreak in Brazil in 2015, aims to analyze the governance of an interorganizational health emergency network. The results point out new perspectives to identify and deal with these interorganizational networks’ challenges, such as the coordination of institutional and individual actors, conflicts, issues related to the network's leadership, learning and mobilization regarding health emergencies – particularly in situations where there is little knowledge and evidence about the risks and effects of viruses and other pathogens, which makes the act of declaring emergency politically controversial.

Interorganizational cooperation in peace operations: a network approach

ABSTRACT This study proposes a network approach to interorganizational cooperation in peace operations. It suggests that in addition to key organisational characteristics that are already established in the literature, such as organisational type, the nature of relationships among intergovernmental organisations (IGOs) drives the formation and evolution of inter-IGO networks in peace operations. To evaluate my hypotheses, I use the temporal exponential random graph model (TERGM). The empirical analysis provides evidence that the formation of interorganizational networks among IGOs in peace operations is largely driven by relational effects, e.g. network effects.

A Strategic Model of Inter-Organizational Network Formation

A Strategic Model of Inter-Organizational Network Formation

A formação de redes interorganizacionais para o desenvolvimento regional

A pesquisa versa sobre a construção de redes interorganizacionais e o papel de uma Instituição de ensino técnico e superior no desenvolvimento regional. O objetivo é analisar a formação de redes interorganizacionais e a importância da atuação do Instituto Federal de Educação, Ciência e Tecnologia do Rio Grande do Sul (IFRS) campus Erechim (RS), para o desenvolvimento regional. A pesquisa justifica-se, pois se propõe observar a interação da Instituição de ensino com os atores sociais regionais e de que forma as áreas de pesquisa contribuem com a região do Alto Uruguai (RS), considerada periférica no contexto socioeconômico do Rio Grande do Sul. Insere-se em uma abordagem descritiva com enfoque de pesquisa qualitativa e a estratégia de pesquisa, se enquadra como estudo de caso único, com base no IFRS e suas respectivas redes interorganizacionais, independentemente de sua densidade. As técnicas de coleta de dados foram a pesquisa documental e a base de dados de pesquisa do IFRS e foi utilizada a análise de conteúdo. A Instituição contribui para o desenvolvimento regional, além da incorporação de valor agregado de conhecimento na qualificação de recursos humanos. A formação de redes interorganizacionais poderia intensificar a eficácia de sua atuação na região do Alto Uruguai (RS). Mesmo verificando a forte interação da Instituição com demais atores regionais e a presença de uma rede formal constituída, com o auxílio do IFRS, o tempo de atuação da Instituição pode ser um limitador para a criação de redes interorganizacionais que promovam o desenvolvimento regional.
 Palavras chave: Desenvolvimento Regional. Ensino Técnico e Superior. Redes Interorganizacionais.

Overcoming the Matthew Effect in Status Dominated Environments – a Configurational Analysis of Venture Capital Investments

Abstract Entering status dominated environments as new entrant is a difficult endeavor. Accumulated advantages go along with the tendency of incumbents to succeed, whereas entrants are likely to lose (Matthew effect). This study examines what combination of deal resources accumulated by venture capital partners lead to high deal performance in order to analyze if new entrants can nonetheless overcome the burden of being new, i. e. having a low status position and only weak ties with current actors in status dominated environments. Our configurational analysis of 333 venture capital investments reveals opportunities for entrants to succeed that go beyond joining forces with established actors. Our findings contribute to research on interorganizational network formation and the strategic actions new entrants on the VC market may take to be successful. Furthermore, the study sheds light on the effect of syndicated opposed to single venture capitalist deals and suggests that successful syndicates require a ce...

A Cooperação Entre Redes de Pequenas Empresas: Antecedentes, Etapas e Resultados da Estratégia de Intercooperação

A formação de redes interorganizacionais pode ser considerada a primeira onda da cooperação entre pequenas empresas. Recentemente, novo movimento vem tomando forma, por meio de estratégias de intercooperação como parcerias e alianças entre redes de empresas. Com base nesse contexto, o objetivo deste estudo foi compreender os antecedentes, etapas de desenvolvimento e os resultados da formação de uma parceria entre redes de empresas, usando como base a Teoria da Dependência de Recursos. Realizou-se um estudo de caso único com uma rede de supermercados formada a partir da cooperação de oito outras redes, no Estado do Ceará. As evidências apontam para três antecedentes que explicam a opção pela estratégia de intercooperação e quatro principais resultados alcançados por meio dessa estratégia. Além disso, o caso estudado revelou as etapas seguidas pelas redes para implementar a estratégia de intercooperação: identificação e seleção de parceiros, alinhamento de interesses e estabelecimento de compromissos, articulação de estratégia para integração do grupo e a implementação de ajustes e adequações. O estudo contribui para a teoria ao demonstrar como a intercooperação reduz a dependência de recursos das redes de pequenas empresas. Do ponto de vista gerencial, o estudo oferece insights sobre como redes interessadas em cooperar com outras redes podem implementar essa estratégia de consolidação.

Comportamento Organizacional em Redes no Brasil: um estudo no Setor Hospitalar

O trabalho descreve de que maneira a forma de relacionamento entre hospitais implica em dinâmicas de competição, cooperação e aprendizagem organizacional, de modo a contribuir para o conhecimento na formação de redes interorganizacionais no setor hospitalar. Por meio de um modelo hipotético em uma pesquisa quantitativa, os construtos atuação em redes, cooperação, política de relacionamento, aprendizagem relacional, fragmentação da rede e competição, foram avaliados sob a teoria de análise de redes sociais. A pesquisa compreende 100% dos serviços hospitalares da Região Metropolitana da Grande Vitória, estado do Espirito Santo, Brasil. Os resultados apontam um potencial de crescimento e a tendência positiva à política de relacionamento entre os hospitais, porém uma média tendência na fragmentação, intervindo nas relações interorganizacionais.

Legitimizing the apprenticeship practice in a distant environment: Institutional entrepreneurship through inter-organizational networks

This paper asks how Multinational Enterprises (MNEs) engage in institutional entrepreneurship to successfully transfer the organizational practice of apprenticeship-based training from Continental Europe to the distant host environment of the United States. In our case study, we highlight the important role of inter-organizational networks to coordinate engagement with the cognitive, normative, and regulative pillars of host country institutions. This networked form of institutional entrepreneurship involves the formation of inter-organizational networks for the purpose of bringing about institutional change collaboratively. In the process of transferring apprenticeship, a particular vision of workforce training was created, support gathered, and institutional change was sustained locally around the issue of training. We argue further that networked institutional entrepreneurship is a useful strategic tool to overcome the particular kind of institutional distance between the institutional settings of more coordinated market economies (CMEs) and more liberal market-oriented economies (LMEs). We contribute to existing knowledge by showing how practice transfer is shaped by particular kinds of institutional distance, and highlighting the role of inter-organizational networks as a way of governing collective agency associated with institutional entrepreneurship and the emergence of new local proto-institutions.

Network Formation During Disasters: Exploring Micro-Level Interorganizational Processes and the Role of National Capacity

ABSTRACTDespite common assumptions about the processes associated with interorganizational network formation, the resulting structures and relevant factors often vary. This variation suggests that there are likely contextual or meta-network variables that moderate the influence of well-established micro-level mechanisms. Because much of the existing research on disaster response networks relies on single case studies, the role of meta-network variables in shaping network formation remains unexplored. We look to fill this gap by comparing network formation patterns in multiple countries that vary in their disaster management capacity. This article uses social network analysis to analyze the formation of response networks after earthquakes in Indonesia, Haiti, and Japan. This study contributes to existing literature by examining how transitivity, homophily, and brokerage vary in their salience under different macro-level constraints. The results suggest that national response capacity may influence the jurisdictional level at which bridging and bonding strategies take place.

Understanding network formation in strategy research: Exponential random graph models

Research summary: This article uses Exponential Random Graph Models (ERGMs) to advance strategic management research, focusing on an application to board interlock network tie formation. Networks form as the result of actor attributes as well as through the influence of existing ties. Conventional regression models require assumptions of independence between observations, and fail to incorporate endogenous structural effects of the observed network.ERGMsrepresent a methodological innovation for network formation research given their ability to model actor attributes along with endogenous structural processes. We illustrate these advantages by modeling board interlock formation among Fortune 100 firms. We also demonstrate howERGMsoffer significant opportunities to extend existing strategy research and open new pathways in multiparty alliances, microfoundations of interorganizational network formation, and multiplexity of ties among actors.Managerial summary: Social networks are increasingly important in the business world, not only between individuals but also between organizations. Firms can obtain information, resources, and status through their external network connections, and understanding how these outside ties form is an important goal of strategy research. Our paper helps advance this effort by introducing a new tool for social network analysis, Exponential Random Graph Models (ERGMs) to the management and strategy fields. We provide an example of this method, demonstrating how social network ties form between companies when they hire common directors to their boards. Executives can benefit from this research through a greater understanding of how corporate relationships are built with allies as well as among competitors. Copyright © 2015 John Wiley & Sons, Ltd.

Inter-organizational network structure and formation mechanisms in Weibo space: A study of environmental NGOs

This study explores the structures of follower/identification networks among non-government environmental organizations on Sina Weibo by using social network analysis techniques, and unpacks the formation mechanisms of these networks by integrating the literature of inter-organizational networks, social movement coalitions, Internet studies and the institutions of social organization management in China. In particular, this study proposes an ‘appropriateness principle’ to explain the effect of registration status on network structure. Descriptive network analyses show that close virtual relations exist among environmental NGOs, and reciprocal relations are prevalent. The findings highlight the importance of legitimacy and lend support to the appropriateness principle. Non-governmental organizations which have offline collaborations or reside in the same province are more likely to form follower/identification relations, and those with similar focus areas are more likely to form identification relations. Weibo activity also has a positive impact on the formation of inter-organizational relations. Overall, the findings of this study suggest that ‘low cost of Internet use’ alone does not provide a sufficient explanation of inter-organizational relations on the cyberspace. The authors argue that on a highly interactive social media platform like Weibo, the trustworthiness of an organization and its capacity to earn recognition from peer organizations play a crucial role in the formation of inter-organizational networks.

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

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.

O Desenvolvimento de Recursos em Redes Interorganizacionais e o Processo de Internacionalização: O Caso Wines of Brasil

The internationalization has become an imperative for survival of many Brazilian industrial sectors. In the wine industry, the growth of competition with imported wines in last years has led companies in the industry to seek new markets abroad. In this way, the formation of interorganizational networks could stimulate the internationalization process by generating collective resources. This paper analyzes the development of resources within a network of interorganizational wine industry and the influence of these resources in the process of internationalization of companies. Therefore, we carried out an exploratory study in a network called Wines of Brasil. The results show that the network has contributed to the generation of resources, such as the reputation of Brazilian wine, market knowledge and access to information among participants. The network´ resources were denominate ´good club´. However, the appropriation of these resources does not occur homogeneously, showing the existence of asymmetries, due to specific organizational architectures of network members (i.e. size, resource base and absorptive capacity of complementary businesses).

The Developmentof Resources Ininterorganizationalnetworksand Theinternationalization Process: The Case Wines of Brasil

The internationalization has become an imperative for survival of many Brazilian industrial sectors. In the wine industry, the growth of competition with imported wines in last years has led companies in the industry to seek new markets abroad. In this way, the formation of interorganizational networks could stimulate the internationalization process by generating collective resources. This paper analyzes the development of resources within a network of interorganizational wine industry and the influence of these resources in the process of internationalization of companies. Therefore, we carried out an exploratory study in a network called Wines of Brasil. The results show that the network has contributed to the generation of resources, such as the reputation of Brazilian wine, market knowledge and access to information among participants. The network´ resources were denominate ´good club´. However, the appropriation of these resources does not occur homogeneously, showing the existence of asymmetries, due to specific organizational architectures of network members (i.e. size, resource base and absorptive capacity of complementary businesses).

The social movements' politics for the rural world

The starting point of this paper is that the political reach of a network-structured movement is related to its capacity to articulate several organizational scales (from local to regional, national and transnational), and to develop various forms of political action (at the levels of collective organizations, political articulations and mobilizations in the public sphere). From this, the paper then examines which rural collective actors are the most expressive at each level, the strategic political actors in the formation of interorganizational networks, the rural social movement's demands, struggles and political challenges, and, finally, the mode of development of the difficult and contradictory relationship between some of these social movement networks, the State and rural elites in the present political conjunture.

Book Review

Book Review

The Formation of Inter-Organizational Networks

I. INTRODUCTION II. RESOURCE FLOWS: ROLE OF ACTIVITY LINKS III. MUTUAL EXPECTATIONS: THE ROLE OF TRUST IV. INFORMATION FLOWS: THE ROLE OF THE CATALYSTS V. CONCLUSION