Pitfalls and Paradoxes: Coping With The Capabilities-Rigidities Dilemma In Whole Networks
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Keywords

Competitive Performance
Advantage
Paradox Theory
Whole Networks

How to Cite

Carter, W., Davis, P., Herchen, J., & Chandna, V. (2013). Pitfalls and Paradoxes: Coping With The Capabilities-Rigidities Dilemma In Whole Networks. Journal of Business Strategies, 30(2), 97–119. https://doi.org/10.54155/jbs.30.2.97-119

Abstract

Emergent interorganizational forms intent on long-term competitive performance
at the network level are affecting markets and gaining scholarly attention.
Whole networks are an example of such organizations. Managerial paradoxes result
from these informal, non-hierarchical structures when they seek long-term competitive
advantage. Applying paradox theory and research on ambidexterity, we conclude
that, counter intuitively, formalized governance is necessary to sustain informal
competitive entity success. Contrary to traditional network theory, social capital
mechanisms and trust are not solely adequate. We examine challenges facing whole
networks and propose three governance strategies to address them: (1) formalized
governance with adequate authority; (2) centralized leadership with decentralized
decision-making; and (3) provisions for managing membership composition. We
discuss implications for practitioners and scholars and suggest research paths for
validating and extending this theory.

https://doi.org/10.54155/jbs.30.2.97-119
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