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This chapter addresses the dynamics in inter-organizational relations. The authors probe the value networks so prevalent within contemporary ­manufacturing to put forward that their basic cooperation/competition duality manifests itself in practical terms as capability, appropriation, and governance paradoxes. The authors conducted a longitudinal ethnographic study aimed at capturing the process by which inter-organizational collabor­ation in ­manufacturing value networks is enacted. Our study finds that inter-organizational relations are “nested” in that a relationship plays out over an interpersonal network where the inter-organizational relationships are a framework for action, while simultaneously interpersonal interactions affect how the inter-organizational relationships take shape and evolve. Furthermore, we found that inter-organizational dynamics is essentially a stratified process. Solving particular and concrete problems at the surface level, with regard to specific collaboration issues between organizations, simultaneously shapes truces with regard to the underlying capability, appropriation, and governance paradoxes.

This paper illuminates the distinction between individual and organizational actors in business-to-business markets as well as the coexistence of formal and informal mechanisms of coordination in multinational corporations. The main questions addressed include the following. (1) What factors influence the occurrence of personal contacts of foreign subsidiary managers in industrial multinational corporations? (2) How such personal contacts enable coordination in industrial markets and within multinational firms? The theoretical context of the paper is based on: (1) the interaction approach to industrial markets, (2) the network approach to industrial markets, and (3) the process approach to multinational management. The unit of analysis is the foreign subsidiary manager as the focal actor of a contact network. The paper is empirically focused on Portuguese sales subsidiaries of Finnish multinational corporations, which are managed by either a parent country national (Finnish), a host country national (Portuguese) or a third country national. The paper suggests eight scenarios of individual dependence and uncertainty, which are determined by individual, organizational, and/or market factors. Such scenarios are, in turn, thought to require personal contacts with specific functions. The paper suggests eight interpersonal roles of foreign subsidiary managers, by which the functions of their personal contacts enable inter-firm coordination in industrial markets. In addition, the paper suggests eight propositions on how the functions of their personal contacts enable centralization, formalization, socialization and horizontal communication in multinational corporations.

This chapter examines the use of signaling mechanism to identify promising acquisition targets. It draws on the importance of inter-organizational relationships of target firms and their relevance as signals of firm quality. It takes into account two types of inter-organizational relationships, alliances and corporate venture capital (CVC) investments. It further identifies the boundary conditions that are most likely to influence the acquisition decision of the acquirer. These are based on the characteristics of target firms and their partners. By considering the role of CVC investments and alliances as signals of firm quality, the study draws a connection between how the different types of equity and non-equity relationships of firms influence the acquirer’s choice of potential takeover target.

The theoretical frame based on the signaling perspective provides fresh and valuable insights to evaluate the quality of target firms. The research provides directions for future opportunities to examine the value of signals and whether such signals create synergies in mergers and acquisitions (M&A) deals. The author identifies new avenues of research that would help to move forward the signaling perspective in the literature on M&A.

The chapter reflects on the coopetition concept and its role in combining cooperation and competition with a paradoxical situation between them. Likewise, it illustrates how coopetition gains a mutual advantage for the collaborative relationship of value creation, new product development (NPD), knowledge acquisition, and organizational performance in inter-organizations. However, it is necessary to build a friendly approach and proper management to ensure effective coopetition. The rationale, though, is the following: coopetition defines innovation performance; coopetition represents knowledge recombination in both inter-organizational and intra-organizational conditions; the coopetition outcomes state knowledge creation and firm’s innovation that lead to new ideas and new variations improving organizational relationships. At the same time, it is highlighted how the customer relationships are aligned in the enterprises and how knowledge transfer in different alliances influence dynamic and complex character exploring tacit and explicit knowledge. As far as knowledge is concerned in an organization, it illustrates the contribution of two essential elements in coopetition value creation, i.e., knowledge management and intellectual capital. By critically evaluating the following, we encourage coopetition and innovation to recognize knowledge and increase the performance of inter-organizational units. Moreover, the primary way for knowledge assessment in organizations is by collaboration with the competitors. Concluding, our theoretical approach acknowledges that knowledge sharing enables more efficient innovation by linking R&D efforts.

In the context of Saudi Arabia, this chapter investigates how clustering promotes knowledge sharing and transfer in an emerging, government-directed industry cluster. It is determined that lateral actors play a key facilitating role, and formal and informal mechanisms and interpersonal links among actors support that cluster knowledge exchange. Limited social capital strength and depth and a lack of trust that prevents knowledge sharing are partially explained by the cluster's limited vertical and horizontal actors.

This study tracked rural network activity among regional stakeholders, including government supported agencies, educational institutes, indigenous business representatives, economic support organizations and rural community groups. It explored the relationships that exist between regional stakeholders in a collaborative rural network environment, offering insights into the relationship dynamic between stakeholder organizations.

A longitudinal case study method was utilized to identify the component elements of regional stakeholder network engagement.

Communication, resource sharing and prolonged social interaction were found to be key elements in promoting stakeholder trust. Furthermore, proactive stakeholders improve commitment to network relationships over time. A cyclical flow of these criteria is necessary for congruent understanding to develop between the stakeholders resulting in collaborative network engagement.

Limitations include stakeholder willingness to participate in the research study, potential participant and researcher bias and the possibility that certain features may be particular to the observed network.

The current research demonstrated that stakeholder engagement cannot be assumed in a rural network environment, thus the implementation of the network paradigm into national strategic plans for rural regional development is recommended.

This research contributes to the under-developed area of regional stakeholder network engagement and provides a basis from which to consider the relationships that exist between regional stakeholders in a rural network. A key outcome is the development of a Framework of Regional Stakeholder Network Engagement, which offers insight into how committed network relationships evolve and highlight the factors that promote and hinder sustainable regional stakeholder engagement.

Intent refers to a firm's initial propensity to view collaboration as an opportunity to learn (Hamel, 1991, p. 90). Comparing the intent to form alliances between Western and Japanese firms, Hamel indicates that most Western firms possess substitution intent to substitute their competitiveness in a specific area for their own lack of skills, whereas the Japanese partners seem to have explicit learning intent to actually internalize their partners’ skills. When the internalization intent is strong in a company, the skills and knowledge acquired from the partner are important to the growth of the whole company (Hamel, 1991). However, if both partners possess equal intent to internalize the other's skill, distrust and conflict may occur to threaten the stability of alliances (Hamel, Doz, & Prahalad, 1989; Madhok, 2006).