In Search of Network Sustainability: A Multi-Level Perspective on the Paradox of Cooperation and Competition in Networks

Abstract

Although all types of public collaborative networks are aimed towards taking joint actions, relations between partner organizations are not always so explicit. Referring to the dialectic approach, it may be concluded that a number of tensions are identifiable in networks, among them tension between cooperation and competition. Understanding the tensions that exist in inter-organizational networks is vital for a proper comprehension of networks, as continuous efforts to meet multiple, divergent demands should bring about long–term sustainability. To examine the phenomena of cooperation and competition in interorganizational networks, a quantitative study on local partnerships among Social Welfare Centers and other public institutions and non-profit institutions was conducted. Using a multi-level perspective, the research introduces orientation towards both cooperation and competition at different levels of analysis and examines the tensions between them. The results of this research show that there is a mutual influence of orientation towards competition/cooperation, both at the individual level and the network level, and that there is a mutual influence of the reconciliation of the contradictions between orientation towards cooperation and orientation towards competition both at the individual level and the network level.

Mission or margin? Using dynamic capabilities to manage tensions in social purpose organisations’ business model innovation

“…However, if a SPO is able to manage contradictory but integrated social and economic tensions operating within a network, the potential for greater sustainability of the network and its outcomes is enabled (Florin & Schmidt, 2011). Austen (2018) identifies that there is limited literature on paradoxes emergent in inter-organisational networks.…”

Configuring a Trust-based Inter-organizational Cooperation Network for Post-industrial Tourist Organizations on a Tourist Route

“…Even if cooperation is the main goal of an inter-organizational network there's always a certain degree of competition between its members. Research results show that sometimes networks consist of entities that are active competitors, nevertheless they enter cooperation to achieve common goals [33]. Therefore in order to comprehend networks one has to realize, that relations inside a network can have various nature, on one side of the spectrum there are cooperative relations based on mutual trust, on the other one -competitive ones, where distrust dominates [33][34][35].…”

“…Research results show that sometimes networks consist of entities that are active competitors, nevertheless they enter cooperation to achieve common goals [33]. Therefore in order to comprehend networks one has to realize, that relations inside a network can have various nature, on one side of the spectrum there are cooperative relations based on mutual trust, on the other one -competitive ones, where distrust dominates [33][34][35]. Every member of a network peruses the common goals of a network, but at the same time they also want to achieve own organizational goals and not be completely dependable on their partners.…”

“…However some researches claim that distrust can also bring positive effects, as well as trust can lead do negative ones [40]. The argument is that too much trust can lead to a too high dependence on partners and can be abused [33]. On the other hand lack of trust is considered by some researches [41] as a threat for network stability, other factors named by them: high complexity and difficulty levels of processes realized with partners, too much dependence on partners, and different level of development in knowledge and skill absorption.…”

Modular Interorganizational Network Governance: A Conceptual Framework for Addressing Complex Social Problems

“…In order to overcome this limitation and extend the principle of modularity to social systems, we weave this together with the literature on interorganizational network governance [23][24][25][26][27]. This literature allows us to view each module as a collaborative interorganizational network [28] that may have a range of governance mechanisms based on the characteristics of the network. It also allows us to theorize on the nature of interface governance needed for social systems where modules may not be completely independent.…”