Open AccessPitfalls and Paradoxes: Coping With The Capabilities-Rigidities Dilemma In Whole Networks
Author(s) -
William R. Carter,
Paula K. Davis,
Julia L. Herchen,
Vallari Chandna
Publication year - 1970
Publication title -
journal of business strategies
Language(s) - English
Resource type - Journals
eISSN - 2162-6901
pISSN - 0887-2058
DOI - 10.54155/jbs.30.2.97-119
Subject(s) - dilemma , corporate governance , ambidexterity , network governance , network theory , business , social dilemma , public relations , knowledge management , computer science , economics , microeconomics , political science , management , epistemology , philosophy , statistics , mathematics
Emergent interorganizational forms intent on long-term competitive performanceat the network level are affecting markets and gaining scholarly attention.Whole networks are an example of such organizations. Managerial paradoxes resultfrom these informal, non-hierarchical structures when they seek long-term competitiveadvantage. Applying paradox theory and research on ambidexterity, we concludethat, counter intuitively, formalized governance is necessary to sustain informalcompetitive entity success. Contrary to traditional network theory, social capitalmechanisms and trust are not solely adequate. We examine challenges facing wholenetworks and propose three governance strategies to address them: (1) formalizedgovernance with adequate authority; (2) centralized leadership with decentralizeddecision-making; and (3) provisions for managing membership composition. Wediscuss implications for practitioners and scholars and suggest research paths forvalidating and extending this theory.