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

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.