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Are there differences between governing and managing strategic networks of different sizes and ages?

Published online by Cambridge University Press:  25 November 2022

Caroline Cordova Bicudo da Costa*
Affiliation:
Department of Business, Universidade de Brasília, Brasília, Distrito Federal, Brazil
Aruana Rosa Souza Luz
Affiliation:
Department of Business, Universidade do Vale do Rio dos Sinos, Porto Alegre, Rio Grande do Sul, Brazil
Douglas Wegner
Affiliation:
Business School, FDC Fundação Dom Cabral, Nova Lima, Minas Gerais, Brazil
*
Author for correspondence: Caroline Cordova Bicudo da Costa, E-mail: carolinecordova@live.com

Abstract

This paper aims to analyze how governance and management of strategic networks (SNs) composed of small firms differ according to network size and length of existence. We analyzed 20 Brazilian SNs, comparing oldest to youngest and largest to smallest. The results show that large SNs have a more robust management structure, automated process control system, and centralized strategic decision-making power. Only small and younger SNs are not centralized and lack incentive mechanisms for members. Moreover, older SNs have a centralized strategic formulation and implementation process, whereas younger SNs have a more inclusive and participatory one. The results confirm previous studies and offer a fine-grained comprehension of the governance of SNs according to the number of members. The findings contribute to the nascent network governance theory and offer insights to network managers who have to reconfigure the governance as the number of members grows.

Type
Research Article
Copyright
Copyright © The Author(s), 2022. Published by Cambridge University Press in association with the Australian and New Zealand Academy of Management

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