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Complexifying the perceived chaos: a hybrid interpretive scheme for engaging with dark potentialities in strategic alliances
Umeå University, Faculty of Social Sciences, Umeå School of Business and Economics (USBE), Business Administration.ORCID iD: 0000-0001-5486-9017
2019 (English)In: Managing interpartner risks in strategic alliances / [ed] T. K. Das, Charlotte, NC: Information Age Publishing, 2019, p. 99-128Chapter in book (Refereed)
Abstract [en]

Strategic alliances have mushroomed in the contemporary landscape. Yet a plethora of them fail to satisfy the partners' strategic objectives. To sustain successful alliances, firms and the individuals involved need to cope with the inherent interpartner risks and uncertainties, which exist on multiple levels and make the interactions among the partners challenging. From an interpretive perspective, prior research has identified that interpretive schemes are critical for alliance managers to make sense and cope with unexpected events that raise concerns about the partner's future behavior. In particular, two alternative interpretive schemes have been suggested, namely sensemaking of chaos and sensemaking in chaos (Das & Kumar, 2010). Whereas the former drives alliance managers to calculate and mitigate exchange hazards, the latter encourages them to suspend and embrace dark potentialities inherent in strategic alliances. This chapter aims to advance the understanding of the synergistic implication of the two interpretive schemes and to increase clarity regarding when and how these can be integrated. Drawing upon literatures on risk and uncertainty, I argue that while risk is the cornerstone of sensemaking of chaos, uncertainty is the cornerstone of sensemaking in chaos. Building upon this, I suggest that when potentiality is examined from both the prisms of risk and uncertainty, alliance managers engage in the integrative interpretive scheme complexifying the perceived chaos, which assumes that engaging with dark potentialities is a multi-solution task. This encourages succesful engagement with not only predictable and eliminable facets of potentiality, but also with unpredictable and ineliminable ones. Thereby alliance managers can cope with dark potentialities as both calculation and suspension of exchange hazards are enabled. 

Place, publisher, year, edition, pages
Charlotte, NC: Information Age Publishing, 2019. p. 99-128
Series
Research in strategic alliances
Keywords [en]
Interpartner Risk, Interpartner Uncertainty, Interpretive Scheme, Strategic Alliances, Coopetition
National Category
Business Administration
Identifiers
URN: urn:nbn:se:umu:diva-175236ISBN: 9781641139083 (print)ISBN: 9781641139090 (print)ISBN: 9781641139106 (electronic)OAI: oai:DiVA.org:umu-175236DiVA, id: diva2:1469603
Available from: 2020-09-22 Created: 2020-09-22 Last updated: 2020-09-29Bibliographically approved
In thesis
1. Coping with Interpartner Uncertainty in Interorganizational Interactions
Open this publication in new window or tab >>Coping with Interpartner Uncertainty in Interorganizational Interactions
2020 (English)Doctoral thesis, comprehensive summary (Other academic)
Abstract [en]

Interorganizational relationships are uncertain endeavors. By engaging in such relationships, organizations become vulnerable to their partner’s behavior and their success is contingent on the partner’s willingness and ability to fulfill its promises. Despite the plethora of benefits provided by interorganizational relationships, organizations face difficulty in understanding and anticipating each other’s future behavior, in aligning their views and expectations, and in predicting the potentialities of their interactions due to the influence of the broader relational context. This difficulty stems from incomplete knowledge about the intentions of the partner and it is particularly salient within coopetitive interorganizational relationships, i.e., relationships involving the simultaneous pursuit of cooperation and competition, as the partners have only partially convergent interests. Whereas prior research has focused on how firms can manage calculable risks through static governance mechanisms, little is known about the underlying processes of how firms cope with interpartner uncertainty. In this thesis, I address the following purpose: to advance the understanding of the processes through which firms cope with interpartner uncertainty in interorganizational interactions.

The purpose is addressed through five research papers, which build on each other and synergistically shed light on different processes through which organizations cope with interpartner uncertainty along the course of their interactions. With an inductive approach, this thesis mainly draws on a qualitative case study of interorganizational interactions in the robotics and automation industry in Sweden. In addition, two literature reviews and a quantitative study supported the fulfilment of the overall purpose. The findings of this thesis establish that three possible means of coping with interpartner uncertainty in interorganizational interactions are the adoption of both trust and distrust as organizing principles, reliance on hybrid interpretive schemes as forward-looking lenses and the use of digital artifacts as boundary objects. In addition, I provide answers about how each of these means of coping supports organizations to cope with interpartner uncertainty by influencing their interaction dynamics. Building upon these findings, I argue that the process of coping with interpartner uncertainty has three distinct, yet interrelated dimensions, namely managerial cognition, relationality and materiality. The thesis concludes by outlining the main theoretical contributions to the bodies of literature on uncertainty in interorganizational relationships, interorganizational trust, and coopetition. Finally, managerial implications are also outlined.

Place, publisher, year, edition, pages
Umeå: Umeå University, 2020. p. 111
Series
Studier i företagsekonomi. Serie B, ISSN 0346-8291 ; 105
Keywords
Interorganizational Relationships, Coopetition, Interpartner Uncertainty, Trust, Distrust
National Category
Business Administration
Research subject
Business Studies
Identifiers
urn:nbn:se:umu:diva-175247 (URN)978-91-7855-371-6 (ISBN)978-91-7855-372-3 (ISBN)
Public defence
2020-10-16, Hörsal C, Samhällsvetarhuset, Umeå, 10:15 (English)
Opponent
Supervisors
Available from: 2020-09-25 Created: 2020-09-22 Last updated: 2020-09-23Bibliographically approved

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