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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 study aims to investigate the risks associated with managing the dispersed knowledge in inter-organizational arrangements for innovation. Specifically, it proposes a model to analyze the knowledge management risks in open innovation, applied in four steps.

Initially, the authors carried out a systematic literature review (SLR) on the concepts that connect knowledge management, inter-organizational arrangements for innovation and risks. The SLR results led to a complementary theoretical review on the conceptual elements in question. Based on the findings, the authors have developed a model to analyze the knowledge management risks in open innovation, which was validated by experts. It was then studied the case of GOL Airlines, a company that uses innovation to overcome the paradox between low-cost and full service in the commercial air transportation industry, considering the application and adjustment of the proposed model.

Open innovation is one of the inter-organizational arrangement types most applied in the context of innovation. Relations between agents are the primary sources of risks when managing the dispersed knowledge in these arrangements. The authors have found five main risks associated, namely, risk of the innovative effort does not reach the expected objective, risk of knowledge transfer being ineffective, risk of misappropriation of value, risk of dependency (lock-in) and risk of relations.

The practical implication is the proposition of a procedure for applying the model to analyze the knowledge management risks in open innovation, which makes it a prescriptive model for identifying risks. The proposed model is described in four steps, namely, to identify the agents in the environment of the value of open innovation; to identify the types of relations of each agent; to consider the barriers to knowledge management in innovation; and to assess the risks considering the possibilities derived from the agents, their relationships and the barriers. The model is applied in the GOL case and the results are presented.

First, it uses a novel approach to investigate open innovation while studying its risks. This approach considers the knowledge is dispersed and flows from one organization to another through a combination of relations inside the environment of value where the open innovation materializes. Second, it contributes to theory development by opening a research front that fuses four areas: risk management, knowledge management, innovation and inter-organizational arrangements. Third, this paper proposes a theoretical model and presents its operationalization. The study aims to make an impact beyond academia and uses a case study to illustrate the model application in a real and interesting open innovation project to support the business model at GOL Airlines.

The purpose of this paper is to investigate how accounting and supply function specialists shape controls in collaborative supply networks (CSNs) and how both might co‐evolve.

This paper is a case study of an Australian metal manufacturer (“SteelBiz”) and its CSN is conducted.

The paper finds changes in both trust vis‐à‐vis formal controls and in intra‐organisational supply‐accounting relations occurred in a mutually constitutive manner. At SteelBiz, a shift to formal controls occurred due to the efforts of the accounting function in contesting organisational visibility. Overall, both intra‐ and inter‐organisational relations were found to co‐evolve.

The limitations of the paper include: an empirical examination of buyer organisations only; a focus on intra‐organisational issues between functional specialists to the relative exclusion of both more “macro” trends and inter‐personal relationships; and the limited generalisability associated with the methodology chosen. Future research should consider both buyer and supplier organisations and whether the “disciplinary alignments” observed here are reflective of more enduring patterns.

The contributions of this paper are two‐fold. First, the paper attempts to fill a gap in the literature pertaining to how intra‐organisational relations might influence network controls. Furthermore, the few studies that do exist describe the “intra‐inter” dynamic as uni‐directional only, whereas this paper reveals how both mutually constitute the other. Second, complexities into the trust‐formal control relationship are revealed while it is proposed that as CSN relations develop, process‐based mechanisms become more important than other relationship‐sustaining devices, with the trust‐formal control dynamic dependent on ongoing negotiation and information as mobilised by intra‐organisational participants.

The purpose of this paper is to discuss the limitations of existing approaches for guaranteeing the quality of a joint output in temporary enterprise networks such as virtual organisations and to identify possibilities for future research on solving this problem.

The paper works towards the analysis of requirements for managing quality in temporary networks such as virtual organisations. Afterwards, it discusses the problem and thus the limitations of existing approaches to guarantee quality of the joint output of such networks.

The review shows that in temporary networks, individual organisations often do not have the right concepts to control inter‐organisational information exchange within the network. Nevertheless, inter‐organisational information exchange gain is important, because it influences the quality of the network's joint output. Existing approaches to define communication structures to support information exchange on the inter‐organisational level do not seem to be sufficient and represent a risk in guaranteeing the quality of a joint output.

This paper explores new directions in quality management from an inter‐organisational perspective in temporary enterprises networks. The findings contribute to supporting the need for the further development of existing approaches to competence management in order to address quality aspects in temporary enterprise environments. This work contributes to the theoretical demand for interlinking quality management with highly dynamic collaborative relations. This point of view goes beyond the internally focused perspective with the goal of integrating converging quality management processes with an inter‐organisational perspective.

This paper aims to investigate the impact of social features of an inter-organizational network on organizational learning and, in turn, on its performance. Specifically, this paper focuses on the following social features: proximity among members, trust among members, trust in network management, commitment among members, members’ engagement and exchange of information.

This paper is based on evidence from a survey involving 101 organizations that integrate the Cooperation Networks established in Rio Grande do Sul, Brazil. The authors analyze data by using exploratory factor analysis, confirmatory factor analysis and structural equation modeling. Furthermore, they advance to also measuring “subjective” variables to business excellence.

The authors find that trust in network management and information exchange is positively associated with organizational learning. In turn, organizational learning appears to impact network members’ performance positively. Arguably, no results about the impact of proximity among members, trust among members and commitment among members are interesting to activate a discussion on the role of region cultural dimensions in shaping the impact of social features underlying the inter-organizational networks on organizational learning.

This study can be enriched by considering moderating variables in the relationships between the social conditions underlying inter-organizational network and learning.

The authors critically discuss the social features underlying the inter-organizational networks that impact learning among network members and how these aspects may be addressed to improve performance.

Given the focus of this empirical analysis, the authors advance the idea that regional culture is the layer of culture that most powerfully inspires the social features of networks, and shapes organizational learning.

The question of whether or not we are witnessing a profound transformation in the nature of relations between industrial buyers and their suppliers towards more collaborative ways of working lies at the heart of more general debates about the nature and direction of organisational change in late twentieth century capitalism. The emergence of, and growing interest in, new network forms of organisation ‐ as distinct from internal bureaucratic and external market‐based forms of transaction governance (e.g. Powell, 1990) ‐ appears to suggest that, in some sectors at least, new forms of relationship are developing between capitalist producers and their suppliers which, moreover, have implications for long term business success. Japanese just‐in‐time production systems, in particular, have had an important influence upon contemporary manufacturing thinking and practice and in many respects are said to provide key elements of a model of ‘best practice’ in the organisation and management of buyer‐supplier relations. The theme of close inter‐organisational collaboration is also apparent in the analysis of, and debates surrounding, new or emergent modes of organisation ‐ for example, the networks of local small firms identified in the ‘flexible specialisation’ literature.

The purpose of this study is to examine how the management accounting practice in an organisational unit affects the ability to conduct inter‐organisational control.

Governmentality is used as the main theoretical basis for the interpretation of empirical data. A qualitative case study is used to gather information from an electronics company.

The company enters its inter‐organisational relationships with the ambition of being in power in the relationship. To begin with, management accounting plays a central role in the negotiation process. Due to inadequate management accounting practices, the company is unable to include cost information in their response to proposals made by their suppliers during negotiations. Consequently, the cost aspect of the product fades away from negotiations as they progress.

The study concludes that an important part of management accounting practice is to reveal the intra‐organisational cost consequences of proposals made by suppliers during negotiation processes. These cost consequences are central during negotiation processes since they will keep the focus on costs and cost improvements during the negotiation process. The study indicates that accounting technologies and the physical presence of the management accountant are not sufficient to keep costs on the agenda. Constant cost consciousness requires that the management accountant actively takes part in the joint problem solving process.

Inter‐firm relationships are increasingly being adopted as competitive tools. However, the challenges created by these relationships for the design and use of management control systems (MCS) have been well documented. The purpose of this paper is to provide a review of the literature on MCS and inter‐firm relationships. The review examines the types of relationships studied and the theoretical approaches.

The findings reported in the paper are based on desk research. The review is largely concentrated on the key international English language accounting journals.

Supply chain and outsourcing have been the dominant forms of inter‐firm relationships studied. Other studies have focused on joint ventures and networks. Transaction cost economics has been the dominant approach and trust has also featured as a theoretical issue in most of the studies.

The paper furthers the understanding of the contributions made by previous studies on MCS and inter‐firm relationships. Some suggestions for future research are offered at the end.

The purpose of this paper is to determine the effects of knowledge spillovers on innovation and collaboration among firms located in science and technology parks (STPs). To do so, whether knowledge spillovers imply a greater degree of innovation in its various forms – product, process, organisational and commercial – and greater inter‐organisational collaboration on research and development (R&D) is analysed. Explicitly, this article examines these effects by identifying and distinguishing between firms located on and off STPs.

This paper adopts a quantitative approach. After reviewing the literature, the study tests the hypotheses empirically using a sample of 784 firms, and performing several logistic binomial regressions to analyse the impact of each type of knowledge spillover on each type of innovation and on the likelihood of firms establishing inter‐organisational collaborative R&D agreements.

The results show that knowledge spillovers have a positive impact on firm propensity to innovate and on the probability of firms engaging in inter‐organisational R&D collaboration. Furthermore, firm location within an STP is found to influence the intensity of the effect of spillovers on innovation and on R&D cooperation. Thus, the magnitude of the effects of spillovers differs according to the type of the spillover.

Given the special features of spillovers and the scarce evidence available analysing the relationship between spillovers, innovation and cooperation and the location on STPs, this work contributes significant empirical evidence to the existing literature.

This study aims to understand in what way international cooperation between universities and/or firms can be seen as a vehicle in the transfer of knowledge and innovation for implementation of environmentally sustainable practices.

To do so, a qualitative approach was adopted, resorting to the case study method: the EdgeWise project. Data were obtained from interviews, documentation provided by partners and observation, and the content analysis technique was also used.

The results lead to the conclusion that this type of international cooperation is supported by solid dimensions, such as knowledge transfer and appropriate choice of partners. In addition, the dimension related to organisational culture is not considered a barrier in the cooperation process studied here, but rather as a form of learning among partners.

The empirical evidence suggests that it will add value to the understanding of the various issues surrounding resources (water and energy) that differ from country to country. However, the administrative-bureaucratic dimension is identified as a barrier to this type of cooperation/project, with its analysis being suggested for future studies.

This innovative study shows that the literature and the case study made identified various dimensions; motivations, barriers and drivers, of knowledge transfer, choice of partners and organisational culture. In addition, this study contributes for international universities-firms cooperation in sustainability area.