Walking a Tightrope: Creating Value Through Interorganizational Relationships

Abstract

This paper provides an overview of the literature on interorganizational relationships. Although the literature on interorganizational relationships is extensive, a pervasive theme that is either explicit or implicit in the majority of the articles is the simple notion of whether interorganizational relationships make sense and whether the advantages outweigh the disadvantages. This article reviews six widely used theoretical paradigms that explain interorganizational relationship formation, including transaction costs economics, resource dependency, strategic choice, stakeholder theory, organizational learning, and institutional theory. Although each paradigm alone is insufficient to capture the complexities of interorganizational relationship formation, the fact that interorganizational relationships can be justified from such diverse theoretical backgrounds is impressive. The paper also reviews the six forms of interorganizational relationships most commonly pursued in practice and discussed in the literature, including joint ventures, networks, consortia, alliances, trade associations, and interlocking directorates. Through these discussions, we elaborate on the potential advantages and disadvantages of participation in interorganizational relationships.

Purchasing's strategic relevance

“…Opportunistic behaviour is at a minimum discouraged in such environments. Business-to-business markets do not This discussion of the nature of markets has coincided with the development of an alternative to markets and hierarchies, namely interorganisational relations (IORs, see Barringer and Harrison, 2000;Mol, 2001;Ring and van de Ven, 1992). In Williamson"s (1991) terms this is called quasi-integration or relational contracting.…”

“…There is a widespread belief that such IORs are increasingly being used in practice and it is definitely true that research interest in them has grown disproportionately in recent years (Barringer and Harrison, 2000). One form of an IOR is the buyersupplier relation (Barringer and Harrison, 2000;Ring and van de Ven, 1992).…”

“…One form of an IOR is the buyersupplier relation (Barringer and Harrison, 2000;Ring and van de Ven, 1992).…”

Strategic partnerships and the internationalisation process of software SMEs

“…A pervasive theme within this literature is whether such activities make sense for firms and whether the advantages outweigh the disadvantages (Barringer & Harrison, 2000). This review examines definitions of strategic partnerships, challenges posed and why such partnerships make sense for firms.…”

Integrating Cross-Border Acquisitions: A Process-oriented Approach

“…We consider that interlocked directorships are the best opportunity of acquiring information that is critical for M&A. 30 The second is the knowledge of the target as captured by having a position as a minority shareholder (X3 e MINORITY SHAREHOLDING).…”