IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/8478.html
   My bibliography  Save this paper

Development of relationships in interorganizational networks: studies in the tourism and construction industries

Author

Listed:
  • Pesämaa, Ossi

Abstract

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.

Suggested Citation

  • Pesämaa, Ossi, 2007. "Development of relationships in interorganizational networks: studies in the tourism and construction industries," MPRA Paper 8478, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:8478
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/8478/1/MPRA_paper_8478.pdf
    File Function: original version
    Download Restriction: no

    File URL: https://mpra.ub.uni-muenchen.de/8478/8/MPRA_paper_8478.pdf
    File Function: original version
    Download Restriction: no

    References listed on IDEAS

    as
    1. Rosenfeld, Stuart A., 1996. "Does cooperation enhance competitiveness? Assessing the impacts of inter-firm collaboration," Research Policy, Elsevier, vol. 25(2), pages 247-263, March.
    2. Gounaris, Spiros P., 2005. "Trust and commitment influences on customer retention: insights from business-to-business services," Journal of Business Research, Elsevier, vol. 58(2), pages 126-140, February.
    3. Mavondo, Felix T. & Rodrigo, Elaine M., 2001. "The effect of relationship dimensions on interpersonal and interorganizational commitment in organizations conducting business between Australia and China," Journal of Business Research, Elsevier, vol. 52(2), pages 111-121, May.
    4. Easley, Richard W. & Madden, Charles S. & Dunn, Mark G., 2000. "Conducting Marketing Science: The Role of Replication in the Research Process," Journal of Business Research, Elsevier, vol. 48(1), pages 83-92, April.
    5. Johnston, Wesley J. & Peters, Linda D. & Gassenheimer, Jule, 2006. "Questions about network dynamics: Characteristics, structures, and interactions," Journal of Business Research, Elsevier, vol. 59(8), pages 945-954, August.
    6. J Michael Geringer & Louis Hebert, 1991. "Measuring Performance of International Joint Ventures," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 22(2), pages 249-263, June.
    7. Eccles, Robert G., 1981. "The quasifirm in the construction industry," Journal of Economic Behavior & Organization, Elsevier, vol. 2(4), pages 335-357, December.
    8. Pesämaa, Ossi & Örtqvist, Daniel & Hair Jr, Josph F, 2007. "It’s all about Trust and Loyalty: Partner Selection Mechanisms in Tourism Networks," MPRA Paper 8428, University Library of Munich, Germany, revised 2007.
    9. J Michael Geringer, 1991. "Strategic Determinants of Partner Selection Criteria in International Joint Ventures," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 22(1), pages 41-62, March.
    10. Seung Ho Park & Michael V. Russo, 1996. "When Competition Eclipses Cooperation: An Event History Analysis of Joint Venture Failure," Management Science, INFORMS, vol. 42(6), pages 875-890, June.
    11. Moller, Kristian & Rajala, Arto & Svahn, Senja, 2005. "Strategic business nets--their type and management," Journal of Business Research, Elsevier, vol. 58(9), pages 1274-1284, September.
    12. 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.
    13. Todeva, Emanuela, 2007. "Strategic Alliances," MPRA Paper 52845, University Library of Munich, Germany.
    14. Dacin, M. Tina & Hitt, Michael A. & Levitas, Edward, 1997. "Selecting partners for successful international alliances: Examination of U.S. and Korean firms," Journal of World Business, Elsevier, vol. 32(1), pages 3-16, April.
    15. Huybers, Twan & Bennett, Jeff, 2003. "Inter-firm cooperation at nature-based tourism destinations," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 32(5), pages 571-587, November.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Long term orientation; motives; partner selection; trust; reciprocity; interpersonal commitment; interorganizational commitment; cooperation; loyalty; tourism; construction industries; experience stratos;

    JEL classification:

    • Y40 - Miscellaneous Categories - - Dissertations - - - Dissertations
    • 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

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:8478. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Joachim Winter) or (Rebekah McClure). General contact details of provider: http://edirc.repec.org/data/vfmunde.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.