IDEAS home Printed from https://ideas.repec.org/p/hal/journl/halshs-01372374.html
   My bibliography  Save this paper

Consummate cooperation in the network-firm: Theoretical insights and empirical findings

Author

Listed:
  • Virgile Chassagnon

    (UGA [2016-2019] - Université Grenoble Alpes [2016-2019])

Abstract

The institutional and industrial evolution of the 1980s and 1990s considerably transformed the governance structures of production through globalization, financialization and the accentuation of competitive pressures. The governance structures of inter-firm relationships have changed greatly; the modern firm is now based on cooperative vertical network organizations of production. The aim of the paper is to investigate theoretically and empirically the specificities of the inter-firm relationships that create the strong consummate cooperation that characterizes what we call the network-firm. We run an empirical study using a very large database on French inter-firm relationships, and our theoretical hypotheses that balanced inter-firm power, inter-firm relational capital and complementary organizational capabilities explain the consummate cooperation that characterizes the network-firm are confirmed.

Suggested Citation

  • Virgile Chassagnon, 2014. "Consummate cooperation in the network-firm: Theoretical insights and empirical findings," Post-Print halshs-01372374, HAL.
  • Handle: RePEc:hal:journl:halshs-01372374
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Langlois, Richard N., 2002. "Modularity in technology and organization," Journal of Economic Behavior & Organization, Elsevier, vol. 49(1), pages 19-37, September.
    2. Gianni Lorenzoni, 2010. "Genesis of a research field: district, network, strategic network," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 14(3), pages 221-239, August.
    3. Raja Kali, 2002. "Contractual governance, business groups and transition," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 10(2), pages 255-272, July.
    4. Masahiko Aoki, 2004. "An organizational architecture of T-form: Silicon Valley clustering and its institutional coherence," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 13(6), pages 967-981, December.
    5. Kirk Monteverde & David J. Teece, 1982. "Supplier Switching Costs and Vertical Integration in the Automobile Industry," Bell Journal of Economics, The RAND Corporation, vol. 13(1), pages 206-213, Spring.
    6. Masahiko Aoki, 2013. "Endogenizing institutions and institutional changes," Chapters, in: Comparative Institutional Analysis, chapter 16, pages 267-297, Edward Elgar Publishing.
    7. Timothy J. Sturgeon, 2002. "Modular production networks: a new American model of industrial organization," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 11(3), pages 451-496, June.
    8. Richard N. Langlois, 2003. "The vanishing hand: the changing dynamics of industrial capitalism," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 12(2), pages 351-385, April.
    9. Baker, George P. & Gibbons, Robert & Murphy, Kevin J., 2008. "Strategic alliances: Bridges between "islands of conscious power"," Journal of the Japanese and International Economies, Elsevier, vol. 22(2), pages 146-163, June.
    10. J. Carlos Jarillo, 1988. "On strategic networks," Strategic Management Journal, Wiley Blackwell, vol. 9(1), pages 31-41, January.
    11. Gene M. Grossman & Elhanan Helpman, 2005. "Outsourcing in a Global Economy," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 72(1), pages 135-159.
    12. Richard N. Langlois, 2007. "The Entrepreneurial Theory of the Firm and the Theory of the Entrepreneurial Firm," Journal of Management Studies, Wiley Blackwell, vol. 44(7), pages 1107-1124, November.
    13. Granovetter, Mark, 1995. "Coase Revisited: Business Groups in the Modern Economy," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 4(1), pages 93-130.
    14. Coriat, Benjamin & Weinstein, Olivier, 2002. "Organizations, firms and institutions in the generation of innovation," Research Policy, Elsevier, vol. 31(2), pages 273-290, February.
    15. Hart, Oliver, 1995. "Firms, Contracts, and Financial Structure," OUP Catalogue, Oxford University Press, number 9780198288817.
    16. Virgile Chassagnon, 2011. "The law and economics of the modern firm: a new governance structure of power relationships," Revue d'économie industrielle, De Boeck Université, vol. 0(2), pages 25-50.
    17. Eccles, Robert G., 1981. "The quasifirm in the construction industry," Journal of Economic Behavior & Organization, Elsevier, vol. 2(4), pages 335-357, December.
    18. Blois, K J, 1972. "Vertical Quasi-Integration," Journal of Industrial Economics, Wiley Blackwell, vol. 20(3), pages 253-272, July.
    19. Virgile Chassagnon, 2011. "The Network Firm as a Single Real Entity: Beyond the Aggregate of Distinct Legal Entities," Journal of Economic Issues, Taylor & Francis Journals, vol. 45(1), pages 113-136.
    20. Jacques Houssiaux, 1957. "Le concept de « quasi-intégration » et le rôle des sous-traitants dans l'industrie," Revue Économique, Programme National Persée, vol. 8(2), pages 221-247.
    21. Ingemar Dierickx & Karel Cool, 1989. "Asset Stock Accumulation and Sustainability of Competitive Advantage," Management Science, INFORMS, vol. 35(12), pages 1504-1511, December.
    22. Raghuram G. Rajan & Luigi Zingales, 1998. "The Governance of the New Enterprise," CRSP working papers 487, Center for Research in Security Prices, Graduate School of Business, University of Chicago.
    23. MacMillan, Keith & Farmer, David, 1979. "Redefining the Boundaries of the Firm," Journal of Industrial Economics, Wiley Blackwell, vol. 27(3), pages 277-285, March.
    24. George Baker & Robert Gibbons & Kevin J. Murphy, 2002. "Relational Contracts and the Theory of the Firm," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 117(1), pages 39-84.
    25. Jeffrey H. Dyer, 1997. "Effective interim collaboration: how firms minimize transaction costs and maximise transaction value," Strategic Management Journal, Wiley Blackwell, vol. 18(7), pages 535-556, August.
    26. Milgrom, Paul & Roberts, John, 1995. "Complementarities and fit strategy, structure, and organizational change in manufacturing," Journal of Accounting and Economics, Elsevier, vol. 19(2-3), pages 179-208, April.
    27. Nicolai Foss, 2002. "New Organizational Forms - Critical Perspectives," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 9(1), pages 1-8.
    28. repec:bla:etrans:v:10:y:2002-07:i:2:p:255-272 is not listed on IDEAS
    29. Bernard Baudry & Virgile Chassagnon, 2012. "The vertical network organization as a specific governance structure: what are the challenges for incomplete contracts theories and what are the theoretical implications for the boundaries of the (hub," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 16(2), pages 285-303, May.
    30. Virgile Chassagnon & Marilyne Audran, 2011. "The Impact Of Interpersonal Networks On The Innovativeness Of Inventors: From Theory To Empirical Evidence," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 15(05), pages 931-958.
    31. Masahiko Aoki, 2004. "An Organizational Architecture of T-form: Silicon Valley Clustering and its Institutional Coherence (Formerly 03004)," Discussion papers 04003, Research Institute of Economy, Trade and Industry (RIETI).
    32. Silvia Sacchetti & Roger Sugden, 2003. "The Governance of Networks and Economic Power: The Nature and Impact of Subcontracting Relationships," Journal of Economic Surveys, Wiley Blackwell, vol. 17(5), pages 669-692, December.
    33. Geoffrey Hodgson, 2002. "The Legal Nature of the Firm and the Myth of the Firm-Market Hybrid," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 9(1), pages 37-60.
    34. Bruce Kogut, 2000. "The network as knowledge: generative rules and the emergence of structure," Strategic Management Journal, Wiley Blackwell, vol. 21(3), pages 405-425, March.
    35. N. G. P. Krausz, 1958. "Corporate Organization of Family Farms," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 40(5), pages 1624-1633.
    36. Paul S. Adler, 2001. "Market, Hierarchy, and Trust: The Knowledge Economy and the Future of Capitalism," Organization Science, INFORMS, vol. 12(2), pages 215-234, April.
    37. Caniëls, Marjolein C.J. & Roeleveld, Adriaan, 2009. "Power and dependence perspectives on outsourcing decisions," European Management Journal, Elsevier, vol. 27(6), pages 402-417, December.
    38. Livio Cricelli & Michele Grimaldi, 2008. "A dynamic view of knowledge and information: a stock and flow based methodology," International Journal of Management and Decision Making, Inderscience Enterprises Ltd, vol. 9(6), pages 686-698.
    39. Gary Hamel, 1991. "Competition for competence and interpartner learning within international strategic alliances," Strategic Management Journal, Wiley Blackwell, vol. 12(S1), pages 83-103, June.
    40. Richardson, G B, 1972. "The Organisation of Industry," Economic Journal, Royal Economic Society, vol. 82(327), pages 883-896, September.
    41. Akbar Zaheer & N. Venkatraman, 1995. "Relational governance as an interorganizational strategy: An empirical test of the role of trust in economic exchange," Strategic Management Journal, Wiley Blackwell, vol. 16(5), pages 373-392.
    42. Subhabrata Bobby Banerjee, 2007. "Corporate Social Responsibility," Books, Edward Elgar Publishing, number 12532.
    43. Ingemar Dierickx & Karel Cool, 1989. "Asset Stock Accumulation and the Sustainability of Competitive Advantage: Reply," Management Science, INFORMS, vol. 35(12), pages 1514-1514, December.
    44. Robert J. David & Shin‐Kap Han, 2004. "A systematic assessment of the empirical support for transaction cost economics," Strategic Management Journal, Wiley Blackwell, vol. 25(1), pages 39-58, January.
    45. Gianni Lorenzoni & Andrea Lipparini, 1999. "The leveraging of interfirm relationships as a distinctive organizational capability: a longitudinal study," Strategic Management Journal, Wiley Blackwell, vol. 20(4), pages 317-338, April.
    46. Sergio G. Lazzarini, 2004. "Order with Some Law: Complementarity versus Substitution of Formal and Informal Arrangements," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 20(2), pages 261-298, October.
    47. Roberts, John, 2010. "Designing incentives in organizations," Journal of Institutional Economics, Cambridge University Press, vol. 6(1), pages 125-132, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bernard Baudry & Virgile Chassagnon, 2012. "The vertical network organization as a specific governance structure: what are the challenges for incomplete contracts theories and what are the theoretical implications for the boundaries of the (hub," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 16(2), pages 285-303, May.
    2. Virgile Chassagnon, 2008. "Qu'est-ce qu'une firme (-réseau) ?," Post-Print halshs-00374758, HAL.
    3. Virgile Chassagnon, 2011. "The Network Firm as a Single Real Entity: Beyond the Aggregate of Distinct Legal Entities," Journal of Economic Issues, Taylor & Francis Journals, vol. 45(1), pages 113-136.
    4. Virgile Chassagnon, 2012. "Pouvoir et coopération dans la firme et entre les firmes," Post-Print halshs-00818301, HAL.
    5. M. J. Histen, 2022. "The extent of the firm," Evolutionary and Institutional Economics Review, Springer, vol. 19(2), pages 545-567, September.
    6. Gianni Lorenzoni, 2010. "Genesis of a research field: district, network, strategic network," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 14(3), pages 221-239, August.
    7. Soh, Pek Hooi, 1966- & Roberts, Edward Baer. & International Center for Research on the Management of Technology., 1998. "The effects of social capital on technological performance of the firm : a a longitudinal analysis," Working papers 174-98, Massachusetts Institute of Technology (MIT), Sloan School of Management.
    8. Agarwal, Rajshree & Croson, Rachel & Mahoney, Joseph T., 2007. "Decision Making in Strategic Alliances: An Experimental Investigation," Working Papers 07-0108, University of Illinois at Urbana-Champaign, College of Business.
    9. Davide Consoli & Pier Paolo Patrucco, 2011. "Complexity and the Coordination of Technological Knowledge: The Case of Innovation Platforms," Chapters, in: Handbook on the Economic Complexity of Technological Change, chapter 8 Edward Elgar Publishing.
    10. George Chondrakis & Mari Sako, 2020. "When suppliers shift my boundaries: Supplier employee mobility and its impact on buyer firms' sourcing strategy," Strategic Management Journal, Wiley Blackwell, vol. 41(9), pages 1682-1711, September.
    11. Kapás, Judit, 2003. "Mutáns vállalatok? A belső hibridekről [Mutant firms? On internal hybrids]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(4), pages 335-349.
    12. Stephan Duschek, 2004. "Inter-Firm Resources and Sustained Competitive Advantage," management revue - Socio-Economic Studies, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 15(1), pages 53-73.
    13. López-Bayón, Susana & González-Díaz, Manuel, 2010. "Indefinite contract duration: Evidence from electronics subcontracting," International Review of Law and Economics, Elsevier, vol. 30(2), pages 145-159, June.
    14. Roger Strange, 2011. "The outsourcing of primary activities: theoretical analysis and propositions," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 15(2), pages 249-269, May.
    15. Josef Windsperger, 2013. "The governance of franchising networks," Chapters, in: Anna Grandori (ed.), Handbook of Economic Organization, chapter 27, Edward Elgar Publishing.
    16. Claude Ménard, 2012. "Hybrid Modes of Organization. Alliances, Joint Ventures, Networks, and Other 'Strange' Animals," Post-Print halshs-00624291, HAL.
    17. repec:hal:wpaper:halshs-00624291 is not listed on IDEAS
    18. Davide Consoli & Pier Paolo Patrucco, 2011. "Complexity and the Coordination of Technological Knowledge: The Case of Innovation Platforms," Chapters, in: Cristiano Antonelli (ed.), Handbook on the Economic Complexity of Technological Change, chapter 8, Edward Elgar Publishing.
    19. Nicolai J. Foss, 2013. "Knowledge governance: meaning, origins and implications," Chapters, in: Anna Grandori (ed.), Handbook of Economic Organization, chapter 4, Edward Elgar Publishing.
    20. Patrucco, Pier Paolo, 2013. "The Evolution of Knowledge Organization: The Emergence of Innovation Platform in the Turin Car System," Department of Economics and Statistics Cognetti de Martiis LEI & BRICK - Laboratory of Economics of Innovation "Franco Momigliano", Bureau of Research in Innovation, Complexity and Knowledge, Collegio 201315, University of Turin.
    21. Gibbons, Robert, 2005. "Four forma(lizable) theories of the firm?," Journal of Economic Behavior & Organization, Elsevier, vol. 58(2), pages 200-245, October.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hal:journl:halshs-01372374. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.