Buidling Interorganizational Networks in an Emerging Economy

In this study, we adopt an organizational legitimacy approach to explore some of the antecedents to the formation of new ventures’ interorganizational networks in emerging economies. Participation in interorganizational networks, particularly with large, established partners, offers numerous benefits to new ventures. Networks provide access to a variety of resources and complementary skills, allow new and small players to achieve economies of scale through specialization within a carefully chosen subset of value-chain activities, and/or to generate superior knowledge and capabilities through collaboration (Chetty & Wilson, 2003; Havnes & Senneseth, 2001; Westhead, Uchbasaran, & Binks, 2004; Belso-Martinez, 2006). In addition to these strategic benefits, the endorsement by large, established organizations in the interorganizational network reaffirms the social status of entrepreneurial ventures and demonstrates that they are socially appropriate and desirable partners, thus providing an important source of normative legitimacy. (Aldrich & Fiol, 1994; Deeds et al., 1997; Zimmerman & Zeitz, 2002; Dacin et al., 2007). In emerging economies, network-based strategies are particularly viable, because the horizontal and vertical interorganizational linkages partially substitute for the inefficient market-clearing mechanisms of open-market exchange, effectively reducing transaction costs (Khanna & Palepu, 1997; Peng et al., 2005) and overcome the prohibitively high costs of information search and monitoring through referral trust and solidarity (Hoskisson et al., 2000; Zhou et al., 2007) .

الملف المرفق: c9d992013InterorganizationalNetworks.pdf