Organizational Forms and National Institutions
Edited by Marcela Miozzo and Damian Grimshaw
Chapter 2: Principles of Inter-organizational Relationships: An Integrated Survey
2. Principles of inter-organizational relationships: an integrated survey Bart Nooteboom INTRODUCTION The sourcing decision – what to make and what to buy – is a special case of the more general decision of what to do inside one’s own organization, and what to do outside, in collaboration with other organizations. Outsourcing entails vertical collaboration in the supply chain. Other forms of collaboration may be horizontal, with competitors, or lateral, with ﬁrms in other industries. Next to the question what to do inside or outside, and why, there are the questions with whom to collaborate, and how, in what forms of organization and with what instruments for governance. The time is ripe for a uniﬁed approach that analyses all these questions, integrating diﬀerent perspectives and arguments that have emerged in recent advances, from diﬀerent disciplines. In particular, there is a need to combine perspectives of competence and governance (Nooteboom 2004a; Williamson 1999). From the perspective of ‘dynamic competences’, there has been a focus on the development of competences and learning, with a neglect of relational risk and its governance. Transaction cost economics (TCE) has focused on ‘hold-up risk’ and the hazards of opportunism, to the neglect of learning and innovation. Concerning governance, network analysis in the social sciences has included the role of trust, while trust has been neglected, or even ruled out, in TCE. In a wide literature, in economics, sociology and business, important new insights have been generated, but they tend to focus on few aspects, resulting in...
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