scholarly journals Why do network organizations fail?

2020 ◽  
Vol 35 (6) ◽  
pp. 1011-1021 ◽  
Author(s):  
Annalisa Tunisini ◽  
Michela Marchiori

Purpose The purpose of this paper is to examine network failures and the main reasons why network organizations, intentionally developed by a group of actors to pursue specific goals, become unfruitful and fail in their goals and expectations of creating collective value. The goal of this paper is thus to contribute a better understanding of the reasons network organizations encounter problems in their dynamics that prevent them from reaching the expected outcomes. Design/methodology/approach The study is firstly based on a literature review finalized to identify the main variables considered as potentially impacting on network failures. Secondly, the paper is based on a survey conducted on 189 strategic networks that highlighted difficulties in achieving their goals. An analysis of the 24 questionnaires returned generated the results discussed. The empirical study concerns strategic networks intentionally created and signed by Italian SMEs according to a specific law designed to promote the development of inter-firm cooperation (“network contracts”). Findings The results of the research highlight the role of specific key items related to individual, structural, legitimacy, interaction and governance variables in explaining failures in network organizations. According to the data, failure can occur immediately before the network start-up, resulting in a blocked network or in a subsequent developmental stage, resulting in a dormant network. The empirical research demonstrated that the items affecting network failure differ between blocked and dormant networks. The authors explain such differences, considering them according to the expected goals declared by the two different types of networks. Originality/value The question of why networks fail is relevant in times of disruption and digitalization when new forms of organization are needed to link businesses and various stakeholders and thereby develop innovative and sustainable ideas for an entrepreneurial future. However, very few studies have examined network failure. The study contributes to this field of research by investigating the dynamics of networks intentionally developed to reach shared goals. The findings can be useful to both companies that decide to start up a strategic network and the policymakers that promote, finance and monitor inter-firm collaboration.

2017 ◽  
Vol 37 (4) ◽  
pp. 423-443 ◽  
Author(s):  
Pietro Micheli ◽  
Matteo Mura

Purpose The purpose of this paper is to investigate the mediating role of comprehensive performance measurement systems (PMS) – i.e. measurement systems that comprise financial and non-financial indicators, and which also consist of indicators related to different aspects of an organisation’s operations – in the relationship between strategy and company performance. Design/methodology/approach Survey data of top managers of large European companies were collected and analysed by means of exploratory factor analyses and hierarchical regressions in order to validate the proposed hypotheses. Findings This research shows that different strategies lead to the use of different types of performance indicators. Also, it finds that the utilisation of a comprehensive PMS enables the implementation of both differentiation and cost-leadership strategies. Specifically, a comprehensive PMS positively mediates the effect of differentiation strategy on organisational and innovative performance, and of cost-leadership strategy on organisational performance. Research limitations/implications Further research could be undertaken in other contexts and consider additional factors, such as the structure, maturity and different uses of PMS, and the cost of measuring performance. Qualitative studies could examine the role of PMS in dynamic environments, as well as the evolution of PMS during strategic transitions. Practical implications Greater consideration should be given to the utilisation of different types of performance indicators when implementing and re-formulating strategy. Originality/value This study clarifies the links between strategy and performance measurement, and it is the first to identify the mediating effect of comprehensive PMS between strategy and company performance.


2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Min Tian ◽  
Baofeng Huo ◽  
Yu Tian

PurposePower use widely exists in buyer–supplier relationships (BSRs). Different directions of power use (i.e. buyer's power use and supplier's power use) intertwining with different types of power (i.e. coercive and noncoercive power) make it insufficient to regard power use as a single construct when examining its effect on a firm's following response. Besides, interdependence structure characterized by joint dependence and dependence asymmetry may influence the effect of a specific power use by shaping the firm's interpretation and cognition toward the relationship. Specifically, this study examines how four types of power use a buyer facing and an interdependence structure with its supplier affect its specific investments to the supplier.Design/methodology/approachThis study tests the proposed relationships using regression analysis, based on data from 240 manufacturing firms in China on their perceived relationships with their major suppliers.FindingsResults show that buyer's coercive power use (BCP) negatively affects buyer's specific investments while noncoercive power use (BNP) does not play a significant role. Both supplier's coercive power use (SCP) and noncoercive power use (SNP) are positively related to buyer's specific investments. Joint dependence positively moderates the effect of BNP and dependence asymmetry negatively moderates the effects of BCP and SNP on buyer's specific investments.Originality/valueThis study contributes to the literature on power use by identifying different types of power use and their different roles in influencing buyer's specific investments. The study also contributes to the literature on interdependence structure by demonstrating the different roles of joint dependence and dependence asymmetry.


2019 ◽  
Vol 25 (1) ◽  
pp. 219-243 ◽  
Author(s):  
Andrea Cardoni ◽  
John Dumay ◽  
Matteo Palmaccio ◽  
Domenico Celenza

Purpose The purpose of this paper is to explore the role of the entrepreneur in the knowledge transfer (KT) process of a start-up enterprise and the ways that role should change during the development phase to ensure mid-term business survival and growth. Design/methodology/approach An in-depth, qualitative case study of Birra Flea, an Italian Craft Brewery, is presented and analysed using Liyanage et al.’s (2009) framework to identify the key components of the KT process, including relevant knowledge, key actors, transfer steps and the criteria for assessing its effectiveness and success. Findings The entrepreneur played a fundamental and crucial role in the start-up process, acting as a selective and passionate broker for the KT process. As Birra Flea matures and moves into the development phase, the role of the entrepreneur as KT’s champion needs to be integrated and distributed throughout the organisation, with the entrepreneur serving as a performance controller. Research limitations/implications This study enriches the knowledge management literature by applying a framework designed to provide a general description of KT, with some modifications, to a single case study to demonstrate its effectiveness in differentiating types of knowledge and outlining how KT can be configured to support essential business functions in an SME. Practical implications The analysis systematises the KT mechanisms that govern the start-up phase of an award-winning SME, with suggestions for how to manage KT during the development phase. Seldom are practitioners given insight into the mechanics of a successful SME start-up; this analysis serves as a practical guide for those wishing to implement effective KT strategies to emulate Birra Flea’s success. Originality/value The world’s economy thrives on SMEs, yet many fail as start-ups before they even have a chance to reach the development phase, presenting a motivation to study the early stages of SMEs. This study addresses that gap with an in-depth theoretical analysis of successful, effective KT processes in an SME, along with practical implications to enhance the knowledge, experience and skills of the actors that sustain these vital economic enterprises.


IMP Journal ◽  
2018 ◽  
Vol 12 (3) ◽  
pp. 519-543
Author(s):  
Chiara Cantù ◽  
Sepe Giorgia ◽  
Alessandra Tzannis

Purpose Differently from previous works that focused on the entrepreneur and on his ability to manage social relationships, the purpose of this paper is to investigate the role of business relationships in the different stages of the life cycle of a start-up. Design/methodology/approach Since the paper aims to explore startups’ evolutionary phenomenon, it adopts a qualitative abductive methodology, presenting an in-depth study of two innovative Italian start-ups. The research is based on two steps. In the first one, the authors collected secondary data from start-ups’ reports and documents, financial indicators (when available) and processed them to understand their background. In the second one, the authors conducted ten semi-structured interviews, including face-to-face interviews, phone interviews and video conferences. Findings The paper presents a relationship-based life cycle model composed of four different stages, depending on the number and role of relationships developed. Indeed, since the beginning, start-ups adopt a relational approach and their evolution involves the shift from the focus on the entrepreneur to the centrality of a network approach based on interconnected relationships. The entering into a new stage of life cycle depends on relationships, mainly based on connected actors and resources shared and combined. Even if a key role is assumed by technology, the main resource is identified in the knowledge concerning the customer/user’s needs that require marketing competencies, human resources, relational capabilities. Thus, the shift from one stage to the next in the start-up’s life cycle is possible thanks to a parallel shift from a focus on the activities to a focus on those strategic and heterogeneous actors that ensure activities. Originality/value In a traditional perspective, the start-up’s life cycle depends on activities, financial resources and revenues, as stated by previous life cycle models. In a different perspective, as depicted in our analysis, the evolution of a start-up depends on the portfolio of their business relationships. The role of business relationships is hence to facilitate the interconnections within specialized key actors, which allow start-ups to access strategic resources. These resources are essential in order to develop the activities that characterize the specific stage of the life cycle.


2016 ◽  
Vol 19 (3) ◽  
pp. 298-316 ◽  
Author(s):  
Margarida Fontes ◽  
Cristina Sousa

Purpose – The purpose of this paper is to address the strategies adopted by science-based start-ups to gain access to knowledge resources at diverse spatial levels. It investigates the presence and relative importance of ties endowed with different types of proximity in firms’ knowledge networks, and the role played by non-geographical proximity in gaining access to knowledge sources, both nearby and distant. Design/methodology/approach – An analytical framework is proposed that distinguishes between two dimensions of proximity – geographical and relational – leading to different forms of proximity, which are further linked with modes of knowledge interaction (formal or informal). A methodology for network reconstruction is developed and applied to Portuguese molecular biology firms, permitting to identify the origin, location and nature of the ties and to position them along forms of proximity. Findings – The results show that the incidence and mix of the different forms of proximity vary in firms’ individual networks, being possible to identify several patterns. They also uncover the relevance of relational proximity, whether or not coexisting with geographical proximity and often compensating for its absence. Research limitations/implications – This approach needs to be complemented with further research that refines the operationalization of relational proximity, by attempting to disentangle the influence of different types of non-geographical proximity. Further research will also explore in greater detail the factors that may explain variety in the proximity mix of firms’ networks. Practical implications – The paper offers insights into the knowledge sourcing strategies adopted by science-based firms located outside the main concentrations of knowledge in their field. Originality/value – The paper contributes to the literature on the role of proximity in knowledge access, by developing and empirically testing a taxonomy of forms of proximity, considering the characteristics of science-based firms. It uncovers the mechanisms through which relational proximity can contribute to span spatial boundaries, highlighting the role played by entrepreneurs’ personal networks.


2012 ◽  
Vol 27 (5) ◽  
pp. 392-402 ◽  
Author(s):  
Christian Felzensztein ◽  
Eli Gimmon ◽  
Claudio Aqueveque

PurposeThis paper aims to focus on the perceived role of clusters in inter‐firm cooperation and social networks.Design/methodology/approachThe study was carried out in a region of Latin America where limited research has been conducted in terms of inter‐firm relationships. Managers from three key natural resources‐based industries in Chile participated in the survey; one of these industries constituted a well‐defined cluster whereas the other two did not. The survey assessed managers' perceptions of the benefits and opportunities of inter‐firm cooperation in strategic marketing activities.FindingsResults support the advantages of clusters. Managers of firms which are part of clustered industries tend to perceive more benefits and opportunities for inter‐firm co‐operation in marketing activities. Additionally, significant differences between clustered and non‐clustered industries in terms of their co‐operation behavior and objectives were found.Research limitations/implicationsThe findings shed light on strategies for the enhancement of inter‐firm cooperation in marketing, of particular value for marketers in small‐and‐medium sized enterprises. The paper suggests establishing new clusters and promoting more regional clusters policies since clustering seems to provide better and positive inter‐firm interaction leading to cooperation.Practical implicationsThere are lessons to be learned at national and regional levels for Latin American and emerging economies fostering new industry cluster policies.Originality/valueClustered firms and industries may result in more innovative marketing strategies at both local and international levels than non‐clustered firms. The authors encourage regional development bodies to foster more cooperation among firms and trade associations.


Author(s):  
Jandir Pauli ◽  
Kenny Basso ◽  
Juliane Ruffatto

Purpose Recent technological developments in healthcare have enabled an increased number of organ transplantation surgeries. At the same time, there is an increase in the number of people awaiting organ transplant, coupled with the difficulty in donation. To bridge this gap, this study aims to propose to evaluate the effect of three types of beliefs (clinical beliefs, financial incentive beliefs and beliefs on the social benefits of altruism and solidarity) on the intention to donate organs. Moreover, this paper uses the attitudes in relation to donation to explain the effect of these beliefs on the intention to donate organs. Design/methodology/approach The research was conducted using a survey of 422 Brazilian participants and a mediation analysis to test the mediation hypotheses. Findings The results suggest that the effect of three types of beliefs (clinical, economic order and social solidarity) influence the intention to donate organs indirectly through the formation of attitudes concerning organ donation. Research limitations/implications This article contributes to the understanding of the formation of organ donation intentions and the role of different types of beliefs in the formation of such intentions. Originality/value The findings extend the discussions regarding the role of beliefs in the formation of attitudes and intentions of organ donation and have significant value in creating public policies that further promote organ donation.


2015 ◽  
Vol 19 (5) ◽  
pp. 968-986 ◽  
Author(s):  
Loubna Echajari ◽  
Catherine Thomas

Purpose – The purpose of this paper is to study organizational learning from complex and heterogeneous experiences. According to March (2010), this kind of high intellect learning is difficult to accomplish because it requires deliberate investments in knowledge transfer and creation. Zollo and Winter (2002) emphasized how knowledge codification can facilitate this process, as long as it is “well-performed”. However, knowledge management scholars have yet to explore what is meant by well-performed codification and how to achieve it. Design/methodology/approach – This paper addresses this gap and provides a conceptual analysis based on two related but previously disconnected research areas: organizational learning and knowledge management. Findings – This paper contributes to the literature in three ways. First, a new understanding of different types of experiences and their effects on learning is proposed. Then the codification process using a critical realist paradigm to overcome the epistemological boundaries of knowledge versus knowing is discussed; in doing so, it is shown that codification can take different forms to be “well-performed”. Finally, appropriate codification strategies based on experience type are identified. Originality/value – The abstraction-oriented codification outlined in this paper runs counter to the logic of concrete codification that dominates both theory and practice. Thus, going beyond the traditional debate on the degree of codification (i.e. should knowledge be fully codified or just partly codified), this paper introduced a new debate about the appropriate degree of abstraction.


2016 ◽  
Vol 54 (6) ◽  
pp. 1522-1538 ◽  
Author(s):  
Willam Joseph Pirie

Purpose – The purpose of this paper is to identify the key determinants of organisational silence from the perspective of non-standard workers (NSWs). The study focuses on three research themes: first, analysing the experiences motivating NSWs to remain silent; second, analysing the role of the NSW life cycle in the motivation to remain silent, the final theme is evaluation of the impact on organisational voice of an organisation employing a workforce in which NSWs and standard workers (SWs) are blended. Design/methodology/approach – The study utilises a phenomenological approach, as defined by Van Manen (2007), to collect and analyse the phenomenon of organisational silence from the perspective of NSWs. The NSWs are defined as individuals operating via Limited Liability UK registered companies created for the purpose of delivering services to organisations via a contract of services. This study employed a combination of phenomenology and hermeneutics to collect and analyse the data collected from the NSWs using semi-structured interviews (Lindseth and Norberg, 2004). Findings – The study concludes with three core findings. NSWs experience similar motivational factors to silence as experienced by standard workers (SWs). The key differential between a SW and a NSW is the role of defensive silence as a dominant motivator for a start-up NSW. The study identified that the reasons for this is that new NSWs are defensive to protect their reputation for any future contract opportunities. In addition, organisations are utilising the low confidence of new start up NSWs to suppress the ability of NSWs to voice. The research indicates how experienced NSWs use the marketing stage of their life cycle to establish voice mechanisms. The study identified that NSWs, fulfiling management and supervisory roles for organisations, are supporting/creating climates of silence through their transfer of experiences as SWs prior to becoming NSWs. Research limitations/implications – This study is a pilot study, and the findings from this study will be carried forward into a larger scale study through engagement with further participants across a diverse range of sectors. This study has identified that there is a need for further studies on organisational silence and NSWs to analyse more fully the impact of silence on the individuals and the organisation itself. A qualitative phenomenological hermeneutical study is not intended to be extrapolated to provide broad trends. The focus of the phenomenological hermeneutic research methodology is on describing and analysing the richness and depth of the NSW’s experiences of silence in organisational settings. Originality/value – This paper draws together the studies of worker classification, motivators for organisational silence, and the impact of blending SWs and NSWs in an organisational setting. The study demonstrates that academic research to date has focused predominantly on SWs to the exclusion of the 1.5 million, and growing, NSWs in the UK. This study examines these under-represented workers to analyse the participants’ experiences of organisational silence, and its consequences in organisational settings, demonstrating a need for further studies.


2020 ◽  
Vol 47 (4) ◽  
pp. 713-727
Author(s):  
Emmanuel Apergis ◽  
Nicholas Apergis

PurposeThis paper empirically explores the role of skill losses during unemployment behind firms' behaviour in interviewing long-term unemployedDesign/methodology/approachThe analysis makes use of the Work Employment Relations Survey in the UK, while it applies a panel probit modelling approach to estimate the empirical findings.FindingsThe findings document that skill losses during long-term unemployment reduce the likelihood of an interview, while they emphasize the need for certain policies that could compensate for this deterioration of skills. For robustness check, the estimation strategy survives the examination of the same predictors under different types of the working environment.Originality/valueThe original values of the work 1 combines for the first time both duration and technology as predictors of interview probability. Until now, the independent variables were used to test whether an individual has managed to exit unemployment, thus skipping the step of the interview process.


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