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Coping with Interpartner Uncertainty in Interorganizational Interactions
Umeå University, Faculty of Social Sciences, Umeå School of Business and Economics (USBE), Business Administration.ORCID iD: 0000-0001-5486-9017
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 [en]
Interorganizational Relationships, Coopetition, Interpartner Uncertainty, Trust, Distrust
National Category
Business Administration
Research subject
Business Studies
Identifiers
URN: urn:nbn:se:umu:diva-175247ISBN: 978-91-7855-371-6 (print)ISBN: 978-91-7855-372-3 (electronic)OAI: oai:DiVA.org:umu-175247DiVA, id: diva2:1469674
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
List of papers
1. Towards a research agenda on how, when and why trust and distrust matter to coopetition
Open this publication in new window or tab >>Towards a research agenda on how, when and why trust and distrust matter to coopetition
2020 (English)In: Journal of Trust Research, ISSN 2151-5581, E-ISSN 2151-559X, Vol. 10, no 1, p. 66-90Article, review/survey (Refereed) Published
Abstract [en]

Trust has been acknowledged as an important aspect of interorganizational relationships. Yet, limited attention has been paid to the importance of trust in the light of coopetitive interactions, i.e. simultaneously cooperating and competing. Research on trust has started to acknowledge that more trust may not always be better, and that trust and distrust are separate and distinct phenomena. Whilst coopetition research has mentioned the important role of trust, the potential role of distrust is even less acknowledged, although it may be particularly relevant due to the tensions, risks, and uncertainties involved. The purpose of this paper is to identify limitations and gaps in the extant literature on trust in coopetition, bring promising research opportunities into light, and create an agenda for future research focused on the roles of both trust and distrust in coopetition. By means of a systematic literature review, we find that the importance of trust in different phases of coopetition has been acknowledged by prior research, yet deeper explanations of how, when, and why different aspects of trust and distrust matter to coopetition are missing. A normative view on trust prevails and the potential fruitfulness of distrust is neglected. Based on these limitations, an agenda including six promising research avenues is constructed.

Place, publisher, year, edition, pages
Routledge, 2020
Keywords
Trust, distrust, coopetition, systematic literature review, research agenda
National Category
Business Administration
Identifiers
urn:nbn:se:umu:diva-169701 (URN)10.1080/21515581.2019.1692664 (DOI)000561431700005 ()2-s2.0-85076903074 (Scopus ID)
Available from: 2020-04-16 Created: 2020-04-16 Last updated: 2021-09-20Bibliographically approved
2. Do trust and distrust in coopetition matter to performance?
Open this publication in new window or tab >>Do trust and distrust in coopetition matter to performance?
2020 (English)In: European Management Journal, ISSN 0263-2373, E-ISSN 1873-5681, Vol. 38, no 3, p. 367-376Article in journal (Refereed) Published
Abstract [en]

It is widely acknowledged that firms intensely engage in coopetition (i.e., simultaneous cooperation and competition) and obtain unique benefits from such relationships. However, limited knowledge exists about how and when coopetition intensity leads to superior performance. Building on the theoretical work documenting that both trust and distrust are critical for enhancing performance in interfirm relationships, we address the aforementioned gap by looking into the distinct yet beneficial roles of trust and distrust in coopetition. More specifically, we argue that whereas trust likely serves as an intervening mechanism through which coopetition intensity enhances relationship performance, distrust positively influences the association between coopetition intensity and relationship performance. We test our hypotheses on a sample of 225 Swedish firms engaged in coopetition, and provide empirical evidence that trust and distrust play distinct yet important roles in achieving superior performance from coopetition.

Place, publisher, year, edition, pages
Elsevier, 2020
Keywords
Coopetition, Trust, Distrust, Performance
National Category
Business Administration
Identifiers
urn:nbn:se:umu:diva-172493 (URN)10.1016/j.emj.2019.10.004 (DOI)000537454700002 ()2-s2.0-85074531113 (Scopus ID)
Funder
The Jan Wallander and Tom Hedelius Foundation, W18-0024Forte, Swedish Research Council for Health, Working Life and Welfare, 2013-00741
Available from: 2020-07-03 Created: 2020-07-03 Last updated: 2021-09-20Bibliographically approved
3. Complexifying the perceived chaos: a hybrid interpretive scheme for engaging with dark potentialities in strategic alliances
Open this publication in new window or tab >>Complexifying the perceived chaos: a hybrid interpretive scheme for engaging with dark potentialities in strategic alliances
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
Series
Research in strategic alliances
Keywords
Interpartner Risk, Interpartner Uncertainty, Interpretive Scheme, Strategic Alliances, Coopetition
National Category
Business Administration
Identifiers
urn:nbn:se:umu:diva-175236 (URN)9781641139083 (ISBN)9781641139090 (ISBN)9781641139106 (ISBN)
Available from: 2020-09-22 Created: 2020-09-22 Last updated: 2020-09-29Bibliographically approved
4. Organizing Principles in Interplay: Trust Can Blind and Distrust Can Keep You Watchful
Open this publication in new window or tab >>Organizing Principles in Interplay: Trust Can Blind and Distrust Can Keep You Watchful
(English)Manuscript (preprint) (Other academic)
Keywords
interorganizational relationships, interpartner uncertainty, trust, distrust, organizing principle
National Category
Business Administration
Research subject
Business Studies
Identifiers
urn:nbn:se:umu:diva-175246 (URN)
Available from: 2020-09-22 Created: 2020-09-22 Last updated: 2020-09-23
5. Digital Artifacts in Industrial Co-creation: How to Use VR Technology to Bridge the Provider-Customer Boundary
Open this publication in new window or tab >>Digital Artifacts in Industrial Co-creation: How to Use VR Technology to Bridge the Provider-Customer Boundary
2020 (English)In: California Management Review, ISSN 0008-1256, E-ISSN 2162-8564, Vol. 64, no 4, p. 125-147Article in journal (Refereed) Published
Abstract [en]

Industrial co-creation projects are often complex and ambiguous, involving high levels of interpretive uncertainty over processes and outcomes. To boost the effectiveness of such projects, firms have increasingly adopted virtual reality (VR) technology and have experienced unique benefits by utilizing digital artifacts-interactive objects in digital environments, such as factory installation layouts or design visualizations. This article provides case evidence demonstrating how VR-enabled digital artifacts support firms to effectively implement tailor-made solutions in robotics and automation projects. The adoption of new digital co-creation practices redefines the traditional customer-provider roles in industrial co-creation, increasing engagement, reducing uncertainty, and improving project outcomes.

Place, publisher, year, edition, pages
Sage Publications, 2020
Keywords
business to business, business-to-business marketing, case studies, co-creation, collaboration, disruptive technology, managing uncertainty
National Category
Business Administration
Identifiers
urn:nbn:se:umu:diva-173436 (URN)10.1177/0008125620931859 (DOI)000541523000001 ()2-s2.0-85086393228 (Scopus ID)
Available from: 2020-07-10 Created: 2020-07-10 Last updated: 2023-03-23Bibliographically approved

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