Inter-organizational network collaboration : how organizations modify expected benefits when facing VUCA environment

Abstract

PURPOSE: The main scientific purpose of this article is to identify how organizations exploit inter-organizational network collaboration when they experience VUCA environment. The study focuses on diagnosing how they modify expected benefits (network and relational rent) when unfavourable operating conditions occur.

DESIGN/METHODOLOGY/APPROACH: Conceptual development and positioning of the research aim at providing a generalizable contribution to management science, at the same time being accessible to practitioners. The research was carried out using the interpretative method of a multiple case study, following its methodological rigor. It was divided into two stages: within-case analysis and cross-case analysis. According to the replication logic, case studies constitute series of independent research which provide data corresponding with set research questions.

FINDINGS: The research shows that experiencing VUCA environment leads to re-thinking and reconfiguring expectations concerning network collaboration benefits. Importance of most network benefits (both kinds of rent) increased slightly or considerably. Moreover, it appeared that the change supported mostly an egocentric approach; organizations gave priority to various kinds of network rent, which builds an advantage for an individual participant of network.

PRACTICAL IMPLICATIONS: The results allow identifying a pattern which shows how organizations exploit network relations in order to adjust to market conditions. The template serves as a practical tool for managers in the process of planning and developing relations with other network participants.

ORIGINALITY/VALUE: The author adopts a new perspective to the problem of operating in VUCA environment, focusing on exploiting inter-organizational network in order to minimize the risk. The study expands our understanding of the nature of networks, how they adjust to changing environment and how network participants exploit collaboration to maximize benefit. It presents a concise theoretical construct which conceptualizes a pattern explaining how organizations react when facing VUCA environment, in terms of modifying priorities concerning expected benefits.