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Abstract

A phenomenon of the last 20 years has been the rapid rise of the network form of governance. This governance form has received significant scholarly attention, but, to date, no comprehensive theory for it has been advanced, and no sufficiently detailed and theoretically consistent definition has appeared. Our objective in this article is to provide a theory that explains under what conditions network governance, rigorously defined, has comparative advantage and is therefore likely to emerge and thrive. Our theory integrates transaction cost economics and social network theories, and, in broad strokes, asserts that the network form of governance is a response to exchange conditions of asset specificity, demand uncertainty, task complexity, and frequency. These exchange conditions drive firms toward structurally embedding their transactions, which enables firms to use social mechanisms for coordinating and safeguarding exchanges. When all of these conditions are in place, the network governance form has advantages over both hierarchy and market solutions in simultaneously adapting, coordinating, and safeguarding exchanges.
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... Although mutual rules are important for governing the alliance, a strong macroculture has also been identified as an effective tool (Das and Teng, 2002). A macroculture is an intersection of common values that is shared by the members through which its actions are influenced (Jones et al., 1997). Especially in non-dyadic partnerships (generalized SET), it can have a positive influence on behavior if the participants share a common denominator such as sustainability (Das and Teng, 2002;Soundararajan et al., 2019). ...
... Especially in non-dyadic partnerships (generalized SET), it can have a positive influence on behavior if the participants share a common denominator such as sustainability (Das and Teng, 2002;Soundararajan et al., 2019). In addition, this shared set of beliefs can have a positive impact on reciprocity and enforcement of sanctions within the alliance, as a group dynamic is created (Jones et al., 1997;Das and Teng, 2002). It facilitates the often indirect and delayed receipt of responses to behavior, as participants assume they are working toward a common goal (Das and Teng, 2002). ...
... It facilitates the often indirect and delayed receipt of responses to behavior, as participants assume they are working toward a common goal (Das and Teng, 2002). The joint enforceability of sanctions is also simplified since a violation by one party might be perceived as working against the shared ideas of the alliance (Jones et al., 1997). The enforcement of social sanctions based on the network SET tends to be more successful because the activities and costs are shared among the participants (Das and Teng, 2002). ...
Conference Paper
To achieve sustainability among supply chain partners, many actors along the supply chain are increasingly engaging in strategic alliances. This paper aims to create an overview of the phenomenon of alliances and the underlying behavior of the participants leading to collaborative partnerships. Based on a literature review, a framework for strategic alliances that address sustainability issues in the supply chains of member companies is conceptualized. Findings suggest motives, interdependence, and implementation as central aspects for the overview of alliances. It revealed that the motives for participating in an alliance mainly lay on efficiency through shared resources and organizational learning, as well as institutional pressure. Drawing on the social exchange theory, aspects such as reciprocity, trust, commitment, and power can be promoted through the organization of the governance structure, fair allocation of power and benefits, and communication. To reduce issues due to information asymmetry, the implementation relies on tools, practices, and structured information exchange. This research contributes to filling identified gaps and expanding knowledge about the phenomenon of alliances to improve collaborative partnerships. It combines previous findings and creates a framework that provides an overview of the topic.
... In such situations trust is important to allow that the partners adjust their tasks to the new situation. Additionally, Jones [40] mentions that formal contracts may exist between some pairs of members, but these do not define the relations among all the partners. ...
... Their members form social networks through the relationships created by previous interactions that link them directly with each other or indirectly by third parties. This links different VOs together and spreads information about third parties among those within the social network, which allows information, and norms to move across VOs boundaries [40]. Having this in mind, reputation is a social mechanism of control that provides information about the reliability and goodwill of potential partners, and when such information is spread in the social network, it fosters trust because it relays the detection of, and serves to deter, deceptive behaviour. ...
... VOs operate under high levels of demand uncertainties generated by unknown and rapid shifts in consumer preferences [40]. Demand uncertainty creates changes in the structure of the VO, which is forced to adapt itself by reallocating tasks or redefining them. ...
Thesis
p>Recently, a large number of new collaborative, networked organisations have emerged, having as motivator the explosive progress in computer networks and communication systems, but also as a reaction to market pressures that demand customised, high quality products and services at lower costs and, at the same time, shorter production and marketing times. Promising grater flexibility, resource optimisation and responsiveness in competitive open environments, Virtual Organisations are presented as an example of this trend that has pervaded not only business domains but other areas such as e-science. What distinguishes Virtual Organisations from other forms of organisation is the full mutual dependence of their members to achieve their goal and therefore the need for cooperation. However, open environments, where Virtual Organisations are embedded, involve organisations and individuals that do not necessarily share the same objectives and interests, which they might not know in advance, and where they might not trust each other, but should work together and help each other to achieve a common goal. One of the key omissions in the computational representation of Virtual Organisations relates to the need to take into account more subjective facets like the reputation of the individuals, that helps to cope with the heterogeneity, the autonomy and the diversity of interests among their members. This thesis addresses the introduction of reputation into Virtual Organisations, by providing a reputation model based on the adaptive evaluation of direct experiences to identify trustworthy members of a Virtual Organisation. This thesis makes three main contributions. First, it provides the means for designers of VOs to identify situations where reputation is required. This is needed since members of a Virtual Organisation, which are also self-interested, must cooperate with each other, and reputation represents a way to identify the possible deceivers and the more attrac tive partners in the environment. Second, it provides a reputation model for Virtual Organisation partners that does not require individuals to interact extensively to detect possible abusive or honest partners. Third, it provides a comparative analysis of current reputation systems used in e-commerce and Multi-Agent Systems, and of the new model proposed.</p
... Although the literature on network governance is quite abundant, the multilateral and intertemporal characteristics of ecosystem interaction create challenges for the existing governance literature that is largely built on dyadic relationships (Jacobides et al., 2018;Ansari et al., 2016). Based on transaction costs and social network theories, Jones et al. (1997) indicate that network governance is "a response to exchange conditions of asset specificity, demand uncertainty, task complexity and frequency" and focal firms can use social mechanisms to coordinate and safeguard these exchanges. Kohtam€ aki et al. (2006) further suggest four mechanisms of network governance, which are price, authority, social governance and the combination of the three. ...
... Due to varying degrees of multilateral, non-generic complementarities, focal firms should use different governance strategies ranging from "acquiring" and "nurturing" which could also be attributed to authority to "engaging" and "collaborating" which can be regarded as social governance mechanisms according to network governance literature (Larson, 1992;Kenis and Provan, 2007;Jones et al., 1997). This complexity makes the ecosystem distinct from the supply chain, alliance and other innovation networks. ...
Article
Purpose Innovation ecosystem research has highlighted complementors as the critical force to determining focal firm innovation’s success in addition to the traditional value chain or supply chain perspective. However, literature is relatively scarce in terms of innovation ecosystem governance, especially, on how to manage various types of complementors. The purpose of this paper is to fill this theoretical gap by developing a typology of managing complementors from multiple case studies. Design/methodology/approach This study conducted multiple case studies of three leading focal firms with ecosystem strategies to understand innovation ecosystem governance. Theoretical themes are inductively generated to reveal their success in managing complementors in their ecosystems. Findings The case analysis reveals four generic strategies to manage complementors. These strategies are contingent on the types of complementors and level of interdependence: focal firms tend to engage functional complementors and collaborate with infrastructural complementors when the level of interdependence is higher, and acquire functional complementors and nurture infrastructural complementors when the level of interdependence is lower. Practical implications For practitioners, this study can improve their understanding on the mechanisms of innovation ecosystem governance, particularly interdependence between participants in an innovation ecosystem, and developing appropriate strategies to manage different types of complementors in innovation ecosystems. Originality/value This study contributes to innovation ecosystem literature by enriching the conceptualization of interdependence in innovation ecosystems and unpacking innovation ecosystem governance with the inductively developed holistic typology of strategies to manage complementors. Meanwhile, this study also suggests underlying mechanisms for how innovation ecosystem governance and, therefore, contributes to a systematic theory on understanding innovation ecosystem governance.
... Most companies operate in a network environment. The fundamental logic of network theory is to allow participating members to achieve cooperative advantages under uncertainty (Gulati & Gargiulo, 1999;Jones, Hesterly, & Borgatti, 1997). To reduce the search costs and alleviate the risk of opportunism associated with networks, organizations tend to create stable, preferential relationships characterized by trust and rich exchange of information with specific partners. ...
... The network theory underscores the importance of social exchange. Embeddedness shifts a member firm's motivations away from the narrow pursuit of immediate economic gains toward enrichment of relationships through trust and reciprocity (Jones et al., 1997). This social embeddedness, however, is generally not a precondition for digital connectivity. ...
Article
We are entering a significantly fragmented world that is full of extreme disruptions and adversities. New connectivity in digital form proves the essential characteristic to help international businesses better cope with these disruptions. This connectivity signifies a dominant feature of the new era of international business and a critical catalyst to address new uncertainties in today's fragmented world. However, this new normal raises a series of complex issues that extend the IB research agenda. This article illustrates this connectivity's conceptual components, theoretical framework, and broad implications for IB research. We further show how MNEs leverage new connectivity to bolster competitive vitality and organizational adaptability when facing unprecedented uncertainties in a fractured and fragile world. This study also offers insights into digital ways of improving cross-border resilience. We conclude with suggested avenues for future research and potential steps.
... The core idea is that the existence of social relationships facilitates access to valuable resources embedded in the social structure (Portes 1998;Woolcock and Narayan 2000). These resources are channeled through social relations and can be mobilized by social actors (Jones et al. 1997;Gulati and Gargiulo 1999;Burt 2003). Hence, being connected to others increases the social capital of actors and enables them to access valuable resources such as information, knowledge, and influence. ...
Article
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Abrupt environmental change, such as sudden shifts in temperature or salinity, can severely alter the functioning of marine ecosystems and cause dramatic impacts on the associated social systems. Resource users, who rely on ecosystem services provided by the ocean, are particularly vulnerable to such drastic events. Functioning social relationships (social capital) have recently been suggested as a key driver for recovery after disaster. Here, we study how small-scale fishers who conduct sea-ranching of the Peruvian bay scallop Argopecten purpuratus in Northern Peru dealt with the literal wipe-out of their target resources caused by the Coastal El Niño (CEN) of 2017 that heavily impacted the entire region. Adopting an ego-network approach complemented by qualitative information from expert interviews, we investigated how resource users drew on their social networks to cope with the disaster. Results suggested a significant positive correlation between more desirable post-disaster trajectories and the number of helpful social links of scallop farmer associations. Disentangling the temporal aspect of this pattern, we found that social capital established before the disaster was driving this correlation. Importantly, both economic and non-economic links were contributing to the observed patterns. This study emphasizes the importance of social capital for dealing with the effects of disasters following natural events. Having extensive social networks increases the capacity to mobilize resources and information when needed and is associated with more efficient recovery after abrupt environmental change. Mechanisms to foster and enhance social capital are key for preventive management actions aiming to build resilience within vulnerable communities facing accelerating global change.
... This procedure, where the neoliberal State imposes tasks on the private market and enjoys avoidance of responsibility but retains the right to intervene and regulate, was identified as early as the late 1990s in a variety of studies (Grabosky, 1995;Jones et al., 1997;Kendall, 1997;Morris, 1998) and was termed "governing from a distance" or "network governance". The literature on migration management (Chisari, 2012;Tseng & Wang, 2013;Geddes, 2015;Khan, 2019) also began to address this procedure by the State in the second decade of the 21st century, as part of the adoption of neoliberal migration management policies by private companies (Tseng & Wang, 2013;Raijman & Kemp, 2016;Kushnirovich et al., 2019;Hedberg and Olofsson, 2022). ...
Article
Full-text available
Migrant workers have become an integral part of the Israeli economy since the 1990s, including agricultural workers who are an essential part of Israel's agricultural economy. This paper recounted the early stages in the establishment and growth of the agricultural migrant worker industry in Israel when control of this industry was in the hands of the largest organization representing the Israeli farmer, the Moshav Movement (MM). The Israeli Moshav (Pl. Moshavim) is a semi-cooperative agricultural community composed of individual family farms. When the migration to Israel of migrant workers began, the MM had an active and crucial role in the arrival and employment of migrant agricultural workers, laying the foundations that established the country's agricultural migration industry. In this paper, I will argue that although the recruitment and handling of migrant workers have been portrayed as a great service for needy farmers by a non-profit organization, in actuality, the profit gained in importing migrant workers provided the MM with an economic lifeline during a time of financial crisis. I will also detail the changing power relations among the three players involved in labor migration import: The State, the MM, and the private manpower and recruitment companies. This paper is based on in-depth interviews with various persons involved in the historical process and on the content analysis of documents, minutes from Israeli Parliament meetings, court writings, and the popular press.
... This does not mean that network governance is generally dysfunctional and ineffective. On the contrary, governance by means of networks has unique potential advantages such as mobilisation of resources, minimisation of transaction costs, learning effects, and social embeddedness (Jones et al., 1997). ...
Research
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Finland has a proud tradition of excellence in elite sports. Until the early 1950s, Finland was the fourth-best nation in the Olympics overall and by far the most medal-winning country per capita, and up to the 1990s, Finnish elite athletes still did well. Eurobarometer data shows that Finland is consistently top of the class in the EU concerning mass partici-pation in sports. Further, the training facilities for elite athletes in Finland are second to none, and public elite sports funding has increased in recent years and is now roughly at the level of the other Nordic countries. Still, there are significantly lower levels of private sponsorships available for Finnish elite sport leaving the total amount of resources behind the Finnish neighbours. Despite the recent increases in public funding, Finland has experienced a radical decline in elite sports performance in the last three decades. This goes for Olympic and Paralympic sports. All appropriate measures of international competitiveness of its elite sports system show that it is now at a significantly lower level than the other Nordic countries. The de-cline is not caused by a lack of efforts to improve the system. Consecutive evaluative re-ports followed by reforms have so far failed to provide significant improvements. This evaluation explores the reasons for this decline. It reports the results of a major study commissioned by the Finnish Ministry of Education and Culture. The characteristics of the Finnish elite sports system are analysed from an international perspective, emphasising a comparison with the other Nordic countries.
... However, due to the problems of information asymmetry and entry barriers of industry university cooperation itself, there will be obvious deficiencies in distinguishing the knowledge synergy ability of its member organizations. For example, a series of problems such as organizational knowledge management system, knowledge stock, knowledge coding degree, knowledge staff quality, and corporate culture are difficult to make accurate judgments in a reasonable time [7]. If the knowledge collaboration capabilities of member organizations differ greatly, it will increase the transaction cost, lead to disharmony in the collaboration process, reduce the value of synergy, and then reduce the efficiency of knowledge collaboration. ...
Article
Full-text available
The difference of decision-making knowledge among members is conducive to the successful realization of group cooperative production. In the actual production, if the different knowledge environments between organizations can cooperate and penetrate each other, the common knowledge of groups can be formed, which is a key step to successfully solve the social and economic problems of public resources. The final efficiency of cross-organizational knowledge collaboration is the key to measure the success or failure of collaboration. Because the cross-organizational knowledge synergy efficiency of industry university cooperation is the result of the cross-influence of many factors, the general linear regression model is difficult to describe the relationship between these influencing factors and knowledge synergy efficiency. Based on the analysis of the importance of cross-organizational knowledge sharing efficiency evaluation of industry university cooperation, this study constructs the efficiency evaluation index system from different angles. At the same time, based on the field investigation of the index system, BP network model is established to effectively evaluate the collaborative efficiency.
... To test the presented hypotheses, our research was designed in such a way that we could explicitly determine inter-project activities and interdependence. Drawing upon prior studies (Powell, 1990;Jones et al., 1997), the construction industry falls within this category because it provides an instructive setting to examine the influence of task and functional interdependencies on the formation of inter-project ties. Owing to the complexity and dynamic nature of construction projects, managing interdependencies are particularly critical for project success (Powell, 1990). ...
Article
Linkages between project teams are critical to project and programme performance. Taking a sender–recipient perspective, we examined the effects of task and functional interdependence on prompting project teams to form ties in the multi-stage programme context. In analysing data of 886 inter-project coordination tasks of a large-scale infrastructure programme in Dubai, findings highlight that the two types of interdependence operate in different ways at different stages of the programme. In the design stage, sender and recipient teams’ task interdependence is negatively related to the formation of inter-project ties, whereas the sender team's functional interdependence is positively related to the formation of inter-project ties. In the construction stage, the sender team's task and functional interdependence are negatively and positively, respectively, related to the formation of inter-project ties. In the handover stage, the formation of inter-project ties is positively influenced by prior ties in the construction stage. This research extends the understanding of inter-project coordination from the project networks perspective, and contributes novel knowledge of inter-project interactions in programme management.
Article
In this article, I undertake a critical interrogation of the complex relations of control operating in the contemporary workplace of the knowledge worker by drawing on Foucault's theorisation of power and resistance. I plot the risks to which the knowledge worker are exposed, the conditions of possibility as well as the challenges that complicate productive resistance in the workplace. In the process, I make use of an array of existing scholarly research that utilises the Foucauldian framework of the relationality of power and develops some Foucauldian concepts further and applies them to our present context.
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Hypercompetition has received much attention, but an important question has not been answered: What organizational forms lead to success in hypercompetitive environments? Hypercompetition forces firms to move more quickly and boldly and to experiment in ways that do not conform to traditional administrative theory. Bureaucratic vertical forms severely hamper the ability to respond to accelerating competition. Flexible forms, in contrast, can respond to a wide variety of changes in the competitive environment in an appropriate and timely way. The author examines several alternative flexible forms for coping with hypercompetitive environments. Flexibility derives from the repertoire of managerial capabilities (management challenge) and the responsiveness of the organization (organization design challenge). On the basis of theories of control, the author argues that organizational flexibility is inherently paradoxical and requires a constructive friction between change and preservation. The paradox of flexibility is portrayed in a conceptual model that relates competitive environments, certain types of flexibility, and organizational conditions. The author develops a rich typology of organizational forms for coping with hypercompetition, each of which reflects a particular way of addressing change and preservation. Furthermore, he explores different trajectories of organizational development over time, especially those relating to revitalization. The implications of the typology for strategy and organization design research in hypercompetitive environments are profound.
Book
In this second volume of Tino Balio's history of United Artists, he examines the turnaround of the company in the hands of Arthur Krim and Robert Benjamin in the 1950s, when United Artists devised a successful strategy based on the financing and distribution of independent production that transformed the company into an industry leader. Drawing on corporate records and interviews, Balio follows United Artists through its merger with Transamerica in the 1960s and its sale to MGM after the financial debacle of the film Heaven's Gate. With its attention to the role of film as both an art form and an economic institution, United Artists: The Company That Changed the Film Industry is an indispensable study of one company's fortunes from the 1950s to the 1980s and a clear-eyed analysis of the film industry as a whole. This edition includes an expanded introduction that examines the history of United Artists from 1978 to 2008, as well as an account of Arthur Krim's attempt to mirror UA's success at Orion Pictures from 1978 to 1991. © 1987, 2009 The Board of Regents of the University of Wisconsin System. All rights reserved.