Pesämaa, Ossi (2007): Development of relationships in interorganizational networks: studies in the tourism and construction industries. Published in: (2007): pp. 1-303.
Download (2MB) | Preview
A firm is a type of organizational arrangement often involved in interorganizational networks. Typically, interorganizational networks are the outcome of individuals in firms working together in cooperative groups. Through these individuals firms establish both formal and social relationships. The individuals develop lasting relationships because they share time, interests, goals, industrial, geographical or some other type of relatedness. Shared goals and interests of the relationship become an observable unit built upon various constructs. Interorganizational networks typically involve one or several different types of relationship constructs. This thesis elaborates on different relationship constructs and proposes different roles for each construct. All relationships are studied at a firm level since managers are considered key informants for the firm. The overall research question is: How do relationships in interorganizational networks develop? The main objective is to examine the development of these relationships in interorganizational networks. Deleted two sentences The approach is to synthesize 10 essays on relationships between five constructs – reciprocity, trust, cooperation, interorganizational commitment and loyalty. The results indicate that relationships are based upon a long term orientation. Secondly, relationships develop from certain processes before interaction is initiated. These processes involve the influence of cooperative motives to enter interorganizational networks and preferences upon which potential partners are selected. Furthermore, the initial processes involving motives and preferences expand to include the development of relationships based on friendships, interpersonal commitments, reciprocity and trust. The ultimate outcome of this process is stability and maturity, which means relationships are sustained by dependencies, their initial objectives and the desire to protect. Dependencies are reflected in interorganizational commitment, which means the firms' future intentions and promises strengthen the relationships. The objectives interorganizational networks are founded upon motivate network firms to develop relationships based on cooperative strategies so that shared goals and decisions can be effectively pursued. Finally, the firms typically protect their relationships by developing loyalties. All models represent unique examples of potential relationships and some models are particularly important because they were purified so that convergent, nomological and discriminant validity criteria could be met. The results are consistent with but extend previous research and are considered important for future business studies in general, but particularly within the tourism and construction industries. A practical implication of the research is thus that in evaluating new opportunities, firms should carefully examine the characteristics of potential partners as well as how the partnership might influence the content of their relationships. Another practical implication is that trust and reciprocity should be viewed differently in building successful network partnerships.
|Item Type:||MPRA Paper|
|Original Title:||Development of relationships in interorganizational networks: studies in the tourism and construction industries|
|Keywords:||Long term orientation; motives; partner selection; trust; reciprocity; interpersonal commitment; interorganizational commitment; cooperation; loyalty; tourism; construction industries; experience stratos;|
|Subjects:||Y - Miscellaneous Categories > Y4 - Dissertations (unclassified) > Y40 - Dissertations (unclassified)
C - Mathematical and Quantitative Methods > C1 - Econometric and Statistical Methods and Methodology: General > C12 - Hypothesis Testing: General
?? C42 ??
A - General Economics and Teaching > A1 - General Economics > A14 - Sociology of Economics
|Depositing User:||I Pesämaa|
|Date Deposited:||12. May 2008 06:03|
|Last Modified:||22. Sep 2015 20:10|
Abrahamson, E., Cutler, H. A., Kautz, R. W. & Mendelson, M. (1958). Social power and commitment: a theoretical statement. American Sociological Review, 23 (1):15-22.
Adler, P. S. & Kwon, W. S. (2002). Social capital: prospects for a new concept. Academy of Management Review, 27 (1): 17-40.
Anderson, E. & Weitz, B. A. (1992). The use of pledges to build and sustain commitment in industrial channels. Journal of Marketing, 29 (1): 18-34.
Audia, P. G., Locke, E. A. & Smith, K. G. (2000). The paradox of success: An archival and a laboratory study of strategic persistence following radical environmental change. Academy of Management Journal, 43 (5): 837-853.
Axelrod, R. (1984). The evolution of cooperation. (USA: Basic books).
Bagozzi, R. P. (1974). Marketing as an organized behavioral system of exchange. Journal of Marketing, 38 (4): 77-81.
Bagozzi, R. P. (1975). Marketing as Exchange. Journal of Marketing, 39 (4): 32-39.
Björk, P. & Virtanen, H. (2005). What tourism project managers need to know about co-operation facilitators. Scandinavian Journal of Hospitality and Tourism, 5 (3): 212-230.
Blau, P. M. (1964). Exchange and power in social life. (New York: John Wiley).
Brusco, S. (1982). The Emilian model: productive decentralization and social integration. Cambridge Journal of Economics, 6: 167-184.
Contractor, F. J. & Loranga, P. (1988). Cooperative strategies in international business: Joint ventures and technology partnership between firms. (New York: Pergamon Elsevier Science).
Cook, K. S. & Emerson, R. M. (1978). Power, equity and commitment in exchange networks. American Sociological Review, 43 (5): 721-739.
Chronéer, D. (2003). Have process industries shifted their centre of gravity during the 90s? International Journal of Innovation Management, 7 (1): 95-129.
Dacin, T. M., Hitt, M. A. & Levitas, E. (1997). Selecting partners for successful International alliances: Examination of U.S. and Korean firms. Journal of World Business, 32 (1): 3-16.
Dwyer, R. F., Schurr, P. H. & Oh, S. (1987). Developing buyer-seller relationships. Journal of Marketing, 51: 11-27.
Doz, Y. L. (1996). The evolution of cooperation in strategic alliances: Initial conditions or learning process. Strategic Management Journal, 17: 55-83.
Easley, R. W., Madden, C.S. & Dunn, M. G. (2000). Conducting marketing science: The role of replication in the research process. Journal of Business Research, 48: 83-92.
Eccles, R. G. (1981). The quasifirm in the construction industry. Journal of Economic Behavior and Organization, 2 (4): 335-357.
Edelman, L. F., Bresnen, M., Newell, S., Scarbrough, H. & Swan, J. (2004).The benefits and pitfalls of social capital: Empirical evidence from two organizations in the United Kingdom. British Journal of Management, 15: 59-69.
Eklund, K. (1993). Vår ekonomi: En introduktion till samhällsekonomin. (Stockholm: Tiden)
Ekelund, C. (2002). How to govern relationships and established commitments: A study of standardized products in mature industrial markets. Doctoral thesis No: 2002:23. (Denmark: Copenhagen Business School).
Eriksson, P-E. (2007). Efficient governance of construction projects through cooperative procurement procedures. Doctoral thesis No 2007:27. (Luleå University of Technology: Industrial Organization).
Eriksson, P-E. & Pesämaa, O. (2007). Modelling procurement effects on cooperation building. Construction Management and Economics, 25 (8): 893-901.
Fombrun, C. J. (1983). Strategies for network research in organizations. Academy of Management Review, 7 (2): 280-291.
Ford, D. (1997). Understanding business markets: Interaction, relationships and networks. (London: The Dryden Press).
Friedman, W. & Kalmanoff, G. (1961). Joint international business ventures. (New York: Columbia University Press).
Garbarino, E., & Johnson, M. S. (1999). The different roles of satisfaction, trust, and commitment in customer relationships. Journal of Marketing, 63 (2): 70-87.
Geringer, M. J. (1991). Strategic determinants of partner selection criteria in international joint ventures. Journal of International Business Studies, 22 (1): 41-62.
Geringer, M. J. & Herbert, L. (1991). Measuring performance of international joint ventures. Journal of International Business Studies, 22 (2): 249-263.
Goel, S., Bell, G. G. & Pierce, J. L. (2005). The perils of pollyana: Development of the over-trust construct. Journal of Business Ethics, 58: 203-218.
Gounaris, S. P. (2005). Trust and commitment influences on customer retention: Insights form business-to-business services. Journal of Business Research, 58: 126-140.
Gulati, R. (1995). Does familiarity breed trust? The implications of repeated ties for contractual choice in alliances. Academy of Management Journal, 38 (1): 85-112.
Gulati, R. & Gargiulo, M. (1999). Where do Interorganizational networks come from? American Journal of Sociology, 104 (5): 1439-1493.
Gundlach, G., Achrol, R. & Mentzer, J. (1995). The structure of commitment in exchange. Journal of Marketing, 59 (1): 78-103.
Haahti, A. & Yavas, U. (2004). A multi-attribute approach to understanding image of a theme park: The Case of SantaPark in Lapland. European Business Review, 16 (4): 390-397.
Hair, J F., Black, B., Babin, B., Anderson, R. E. & Tatham, R L. (2006). Multivariate data analysis. 6th ed. (London: Prentice-Hall).
Hair, J. F., Babin, B., Money, A. H. & Samuel, P. (2003). Essentials of business research methods. (USA: Wiley).
Handy, C. (1995). Trust and the virtual organization. Harward Business Review, (May-June) 40-50.
Harland, C. M., Lamming, R. C., Zheng, J. & Johnsen, T. E. (2001). A taxonomy of supply networks. Journal of Supply Chain Management, 37: 20-27.
Harrigan, K. R. & Newman, W. H. (1990). Bases of interorganization co-operation: Propensity, power, persistence. Journal of Management Studies, 27 (4): 417-434.
Huang, L. (2006). Building up a b2b e-commerce strategic alliance model under an uncertain environment for Taiwan’s travel agencies. Tourism Management, 27: 1308-1320.
Huggins, R. (2000). The success and failure of policy-implanted inter-firm network initiatives: Motivations, process and structure. Entrepreneurship & Regional Development, 12: 111-135.
Huybers, T. & Bennett, J. (2003). Inter-firm cooperation at nature-based tourism destinations. Journal of Socio-Economics, 32: 571-587.
Hörte, S. Å. (1995). Organisatoriskt lärande - En antologi från projektet Utveckling av nyckelkompetenser för individer och företag. (Göteborg: IMIT).
Ingram, P. & Roberts, P. W. (2000). Friendships among competitors in the Sydney hotel industry. American Journal of Sociology, 106 (2): 387-423.
Johannisson, B. (1990). Economies of overview: Guiding the external growth of small firms. International Small Business Journal, 9 (1): 32-44.
Johnston, W. J., Peters, L. D. & Gassenheimer, J. (2006). Questions about network dynamics: characteristics, structures and interactions. Journal of Business Research, 59: 945-954.
Järvinen, J. (1988). Turismutveckling: En studie ur företagsledningens perspektiv. Licentiate thesis No 1988:010. (Luleå: Högskolan i Luleå).
Killing, P. J. (1988). Understanding alliances: The role of task and organizational complexity, (in) Contractor, I. J. & Lorange, P. (eds) Cooperative strategies in international business: 31-53. (Lexington: Lexington books).
Kogut, B. (1988). Joint ventures: Theorethical and empirical perspectives. Strategic Management Journal, 9: 319-332.
Ko, J-W., Price, J. I. & Mueller, C. W. (1997). Assessment of Meyer and Allen’s three-component model of organizational commitment in South Korea. Journal of Applied Psychology, 82 (6): 961-973.
Kumar, N., Scheer, L. K. &. Steenkamp, J-B. E. M. (1995a). The effects of supplier fairness on vulnerable resellers. Journal of Marketing Research, 32 (1): 54-65.
Kumar, N., Scheer, L. K. & Steenkamp, J-B. E. M. (1995b). The effects of interdependence on dealer attitudes. Journal of Marketing Research, 32 (3): 348-356.
Lamb, C., Hair, J. F. & McDaniel, C. (2008). Marketing. Ninth edition. (Cincinnati: Southwestern Publishing).
Lane, C. & Bachmann, R. (1998). Trust within and between organizations: Conceptual issues and empirical applications. (Oxford: Oxford University Press).
Lawrence, T. B., Wickins, D. & Phillips, N. (1997). Managing legitimacy in ecotourism. Tourism Management, 18 (5): 307-316.
Levienthal, D. A., &. March, J. G. (1993). The myopia of learning. Strategic Management Journal, 14: 95-112.
Lundbäck, M. (2005). Inter-firm product platform development in the automotive industry. International Journal of Innovation Management, 9(2): 155-181.
Marsden, P. V. (1990). Network data and measurement. Annual Review of Sociology, 16: 435-463.
Maslyn, J. M. & Uhl-Bien, M. (2001). Leader-member exchange and Its dimensions: Effects of self-effort and other’s effort on relationship quality. Journal of Applied Psychology, 86 (4): 697-708.
Mavondo, F. & Rodrigo, E. (2001). The effect of relationship dimensions on interpersonal and interorganizational commitment in organizations conducting business between Australia and China. Journal of Business Research, 52: 11-121.
McGee, J. & Thomas, H. (1986). Strategic groups: theory, research and taxonomy. Strategic Management Journal, 7: 141-160.
Medina-Munoz, D. & Garcia-Falcon, J. M. (2000). Successful relationships between hotels and agencies. Annals of Tourism Research, 27 (3): 737-762.
Meyer, J. P., Allen, N. J. & Smith, C. A. (1993). Commitment to organizations and occupations: Extension and test of a three-component conceptualization. Journal of Applied Psychology, 78 (4): 538-551.
Mitroff, I. I., Betz, F., Pondy, L. R. & Sagasti, F. (1974). On managing science in the system age: Two schemas for the study of science as a whole systems phenomenon. Interfaces, 4 (3): 46-58.
Morgan, R. &. Hunt, S. (1994). The commitment-trust theory of relationship marketing. Journal of Marketing, 58 (3): 20-38.
Mowday, R., Porter, L. & Steers, R. (1982). Employee-organizational linkages. (New York: Academic Press).
Mukherjee, A. & Nath, P. (2003). A model of trust in online relationship banking. International Journal of Bank Marketing, 21 (1): 5-15.
Murto-Koivisto, E., Routamaa, V. & Vesalainen, J. (1996). The prerequisites for different types of successful interfirm cooperation in the SME-sector. Journal of Enterprising Culture, 4 (2): 109-122.
Möller, K., Rajala, A. & Svahn, S. (2005). Strategic business nets: Their type and management. Journal of Business Research, 58 (9):1274-1284.
Ngowi, A. B. (2007). The role of trustworthiness in the formation and governance of construction alliances. Building and Environment, 42 (4): 1828-1835.
Nicholson, C. Y., Compeau, L. D. & Sethi, R. (2001). The role of interpersonal liking in building trust in long-term channel relationships. Journal of the Academy of Marketing Science, 29 (1): 3-15.
Nohria, N. & Eccles, R. G. (1992). Networks and organizations: Structure, form and action, (Boston: Harvard Business School Press).
Park, S. H., Chen, R. & Gallagher, S. (2002). Firm resources as moderators of the relationship between market growth and strategic alliances in semiconductor start-ups. Academy of Management Journal, 45(3): 527-545.
Park, S. H. & Russo, M. V. (1996). When competition eclipses cooperation: An event history analysis of joint venture failure. Management Science, 42 (6): 875-890.
Parkhe, A. (1993). “Messy” research, methodological predispositions, and theory development in international joint ventures. Academy of Management Review, 18 (2): 227-268.
Pesämaa, O. (2004). Interfirm network content analysis. Working Paper No 2004:59, (Luleå University of Technology: Industriell Organisation).
Pesämaa, O. (2007a). Hur utvecklar små och medelstora turismföretag interorganisatoriska förbund: En validerad strukturell ekvationsmodell. Licentiate thesis No 2007:38. (Luleå: Luleå University of Technology).
Pesämaa, O. (2007b). Against the odds: Building interfirm commitment under trying circumstances, Submitted to Journal of General Management.
Pesämaa, O (2007c). The process of interorganizational commitment, Submitted to International Journal of Tourism Policy and Research.
Pesämaa, O. (2008). "Öhlins Chemicals: resolving communication problems." case (in) Hair, J., et.al., (eds). Professional Sales Management. (Boston: Houghton-Mifflin). Forthcoming 2008.
Pesämaa, O. & Hair, J. F. (2007). More than friendship is required: An empirical test of cooperative firm strategies. Management Decision, 45 (3): 602-615.
Pesämaa, O. & Hair J. F. (2008). Cooperative strategies for improving the tourism industry in remote geographic regions: An addition to trust and commitment theory with one key mediating construct, Forthcoming in Scandinavian Journal of Hospitality and Tourism, 8 (2):
Pesämaa, O., Hair J. F. & Eriksson, P-E. (2007). To protect and attract: Firms cooperating in nature-based tourism destinations, Submitted to Tourism Culture & Communication.
Pesämaa, O., Hair. J. F. & Jonsson-Kvist. A-K. (2007). When collaboration is difficult: The impact of dependencies and lack of suppliers on small and medium sized firms in a remote Area. World Journal of Tourism Small Business Management, 1: 6-11.
Pesämaa, O., Hair, J. F., Klefsjö, B. & Örtqvist, D. (2007). Developing a thermometer measuring tourist’s needs, expectations and experiences: An empirical study of 217 visitors in Norrbotten. Research report No 2007:3. (Luleå tekniska universitet: Avdelningen för kvalitets- & miljöledning).
Pesämaa, O., Hair. J. F. & Örtqvist, D. (2007). It’s all about trust and loyalty: Partner selection mechanisms in tourism networks. World Journal of Tourism Small Business Management, 1: 55-61.
Pieper, T. M. (2007). Mechanisms to assure long term family business survival: A study of the dynamics of cohesion in multigenerational family business families. (Frankfurt: Peter Lang Publishing Group).
Porter, M. (1998). Clusters and the new economics of competition. Harvard Business Review, (Nov-Dec) 77-90.
Portes, A. (1998). Social capital: Its origins and applications in modern sociology. Annual Review of Sociology, 24: 1-24.
Pfeffer, J. & Nowak, P. (1976). Joint ventures and interorganizational interdependence. Administrative Science Quarterly, 21 (3): 398-414.
Phillips, A. (1960). A theory of interfirm organization. Quarterly Journal of Economics, 74 (4): 602-613.
Ring, P.S. & Van de Ven, A. H. (1994). Developmental processes of cooperative interorganizational relationships. Academy of Management Review, 19 (1): 90-118.
Rodriguez, C. M. &. Wilson. D. (2002). Relationship bonding and trust as a foundation for commitment in U.S. – Mexican strategic alliances: A structural equation modelling approach. Journal of International Marketing, 10 (4): 53-76.
Rosenfeld, S. (1996). Does cooperation enhance competitiveness? Assessing impacts of inter-firm collaboration. Research Policy, 25: 247-263.
Rumelt, R. P., Schendel, D. & Teece, D. J. (1991). Strategic management and economics. Strategic Management Journal, 12: 5-29.
Scott, J. (2000). Social network analysis. (London: Sage publications).
Simmel, G. (1906). The Sociology of secrecy and of secret societies. American Journal of Sociology, 11 (4): 441-498.
Sharma, N., Young, L. & Wilkinson, I. (2006). The commitment mix: Dimensions of commitment in international trading. Journal of International Marketing, 14 (3): 64-91.
Svensk, G. (1998). Turismföretagarens syn på nätverkssamarbete. Research report No 1988:1. (Östersund: Etour).
Thompson, J. D. & McEven, W. J. (1958). Organizational goals and environment: Goal setting as an interaction process. American Sociological Review, 23 (1): 23-31.
Tjosvold, D. & Sun, H. F. (2002). Understanding conflict avoidance: Relationship, motivations, actions and consequences. International Journal of Conflict Management, 13 (2): 142-164.
Todeva, E. & Knoke, D. (2005). Strategic alliances and models of collaboration, Management Decision, 43 (1): 123-148.
Uzzi, B. (1997). Social structure and competition in interfirm networks: The paradox of embeddedness. Administrative Science Quarterly, 42(1): 35-67.
Varamäki, E. (2001). Essays on multilateral cooperation between SMEs: The prerequisites for successful development and different models of interfirm cooperation. Doktoral thesis No 2001:1. (Finland: Universitas of Wasaensis).
Volery, T. (1995). Critical success factors in interfirm cooperation: Skills for success in small and medium enterprises. In Proceedings SCSB 40th World Conference Newcastle 1995. B. Gibson, ed., pp 319-330. Newcastle: Institute of Industrial Economics.
Wetzels, M., de Ruyter, K. & van Birgelen. M. (1998). Marketing service relationships: The role of commitment. Journal of Business & Industrial Marketing, 13 (4/5): 406-423.
Wildeman, L. (1998). Alliance and networks: The next generation. International Journal of Technology Management, 15: 96-108.
Wincent, J. (2006). On building competitiveness in strategic SME networks: Empirical analysis of 54 firms in two networks. Doctoral thesis No 2006:4. vid Luleå Tekniska Universitet. (Luleå University of Technology: Division of Business Administration and Management Control).
Wong, A. & Sohal, A. (2002). An examination of the relationship between trust, commitment and relationship quality. International Journal of Retail & Distribution Management, 30 (1): 34-50.
Ylimaz, C. & Hunt, S. D. (2001). Salesperson cooperation: The influence of relational, task, organizational, and personal factors. Journal of the Marketing Science, 29 (4): 335-357.
Ylinenpää, H. (1997). Managing competence development and acquisition in small manufacturing firms. Doctoral thesis No 1997:27. (Luleå University of Technology: Industrial Organization).
Yoon, J., Baker, M. R. &. Ko, J-W. (1994). Interpersonal attachment and organizational commitment: Subgroup hypothesis revisited. Human Relations, 47 (3): 329-351.
Zaheer, A., McEvily, B. & Perrone, P. (1998). Does trust matter? Exploring the effects of interorganizational and interpersonal trust on performance. Organization Science, 9 (2): 141-159.
Zaheer, A. & Venkatraman, N. (1995). Relational governance as an interorganizational strategy: An empirical test of the role of trust in economic exchange. Strategic Management Journal, 16 (5): 373-392.