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More than friendship is required : an empirical test of cooperative firm strategies

Author

Listed:
  • Pesämaa, Ossi
  • Hair Jr, Joseph F

Abstract

Purpose - The purpose of this paper is to examine a proposed six-construct theoretical model of factors influencing successful cooperative relationships and strategy development. Design/methodology/approach - A theoretical model of strategy development and cooperative relationships was tested. Qualitative research among key experts identified 15 successful regional tourism networks. Two successful cooperative networks were selected based on annual revenues. A sample of 254 small and medium-sized members were surveyed from the two networks in Northern Minnesota, USA. Findings - Strong support was obtained for the proposed model. Hypothesized relationships were tested and the findings were consistent with previous research. Long-term orientation has a positive effect on friendship, loyalty, trust and commitment. Friendship is related to loyalty and commitment, and loyalty is related to trust. Ultimately, trust and commitment engender successful cooperation. The model can be used as a guide to strategy development at different levels in an organization. Research limitations/implications - Large firms select between higher and lower order functional strategies. Small and medium-sized firms sometimes address commitment and cooperative strategies through shared goals and decisions in order pursue higher order strategies. This paper research supports a greater emphasis on establishing relationships using loyalty, trust and commitment to develop successful higher order strategies. However, relationships based on friendship also can be an important consideration in strategy development. Practical implications - Strategic implications for developing relationships that can be used as a planning component of hierarchical strategies. Originality/value - The paper maintains that loyalty is more important than friendship in developing successful strategies based on cooperation.

Suggested Citation

  • Pesämaa, Ossi & Hair Jr, Joseph F, 2006. "More than friendship is required : an empirical test of cooperative firm strategies," MPRA Paper 8427, University Library of Munich, Germany, revised 2007.
  • Handle: RePEc:pra:mprapa:8427
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    File URL: https://mpra.ub.uni-muenchen.de/8477/1/MPRA_paper_8477.pdf
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    References listed on IDEAS

    as
    1. Hageback, Charlotte & Segerstedt, Anders, 2004. "The need for co-distribution in rural areas--a study of Pajala in Sweden," International Journal of Production Economics, Elsevier, vol. 89(2), pages 153-163, May.
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    Cited by:

    1. Weihe Gao & Yong Liu & Liping Qian, 2016. "The personal touch of business relationship: A study of the determinants and impact of business friendship," Asia Pacific Journal of Management, Springer, vol. 33(2), pages 469-498, June.
    2. Lai, Christine & Singh, Barjinder & Alshwer, Abdullah A. & Shaffer, Margaret A., 2014. "Building and Leveraging Interpersonal Trust Within and Across MNE Subsidiaries: A Social Exchange Perspective," Journal of International Management, Elsevier, vol. 20(3), pages 312-326.
    3. Matthias Meier & Martina Lütkewitte & Thomas Mellewigt & Carolin Decker, 2016. "How managers can build trust in strategic alliances: a meta-analysis on the central trust-building mechanisms," Journal of Business Economics, Springer, vol. 86(3), pages 229-257, April.
    4. Pesämaa, Ossi, 2007. "Development of relationships in interorganizational networks: studies in the tourism and construction industries," MPRA Paper 8478, University Library of Munich, Germany.

    More about this item

    Keywords

    Long term orientation; friendship; loyalty; trust; commitment; cooperation; tourism; experience stratos;

    JEL classification:

    • C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General
    • C42 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Survey Methods
    • A14 - General Economics and Teaching - - General Economics - - - Sociology of Economics

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