In this article we offer a view that suggests that a firm's critical resources may span firm boundaries and may be embedded in interfirm resources and routines. We argue that an increasingly important unit of analysis for understanding competitive advantage is the relationship between firms and identify four potential sources of interorganizational competitive advantage: (1) relation-specific assets, (2) knowledge-sharing routines, (3) complementary resources/capabilities, and (4) effective governance. We examine each of these potential sources of rent in detail, identifying key subprocesses, and also discuss the isolating mechanisms that serve to preserve relational rents. Finally, we discuss how the relational view may offer normative prescriptions for firm-level strategies that contradict the prescriptions offered by those with a resource-based view or industry structure view.

https://www.jstor.org/stable/pdfplus/259056.pdf

The Relational View: Cooperative Strategy and Sources of Interorganizational Competitive Advantage

According to W. Edwards Deming, American companies require nothing less than a transformation of management style and of governmental relations with industry. In Out of the Crisis, originally published in 1982, Deming offers a theory of management based on his famous 14 Points for Management. Management's failure to plan for the future, he claims, brings about loss of market, which brings about loss of jobs. Management must be judged not only by the quarterly dividend, but by innovative plans to stay in business, protect investment, ensure future dividends, and provide more jobs through improved product and service. In simple, direct language, he explains the principles of management transformation and how to apply them.

Out of the Crisis

Our task is to adopt a multidisciplinary view
of trust within and between firms, in an effort to
synthesize and give insight into a fundamental
construct of organizational science. We seek to
identify the shared understandings of trust
across disciplines, while recognizing that the
divergent meanings scholars bring to the study
of trust also can add value.

Not So Different After All: A Cross-Discipline View Of Trust

How has Japan become a major economic power, a world leader in the automotive and electronics industries? What is the secret of their success? The consensus has been that, though the Japanese are not particularly innovative, they are exceptionally skilful at imitation, at improving products that already exist. But now two leading Japanese business experts, Ikujiro Nonaka and Hiro Takeuchi, turn this conventional wisdom on its head: Japanese firms are successful, they contend, precisely because they are innovative, because they create new knowledge and use it to produce successful products and technologies. Examining case studies drawn from such firms as Honda, Canon, Matsushita, NEC, 3M, GE, and the U.S. Marines, this book reveals how Japanese companies translate tacit to explicit knowledge and use it to produce new processes, products, and services.

The knowledge-creating company : how Japanese companies create the dynamics of innovation

A separate and distinct interaction with both the actual e-vendor and with its IT Web site interface is at the heart of online shopping Previous research has established, accordingly, that online purchase intentions are the product of both consumer assessments of the IT itself-specifically its perceived usefulness and ease-of-use (TAM)-and trust in the e-vendor But these perspectives have been examined independently by IS researchers Integrating these two perspectives and examining the factors that build online trust in an environment that lacks the typical human interaction that often leads to trust in other circumstances advances our understanding of these constructs and their linkages to behavior

Our research on experienced repeat online shoppers shows that consumer trust is as important to online commerce as the widely accepted TAM use-antecedents, perceived usefulness and perceived ease of use Together these variable sets explain a considerable proportion of variance in intended behavior The study also provides evidence that online trust is built through (1) a belief that the vendor has nothing to gain by cheating, (2) a belief that there are safety mechanisms built into the Web site, and (3) by having a typical interface, (4) one that is, moreover, easy to use

Trust and TAM in online shopping: an integrated model

A conceptual challenge in exploring the role of trust in interorganizational exchange is translating an inherently individual-level concept-trust-to the organizational-level outcome of performance. We define interpersonal and interorganizational trust as distinct constructs and draw on theories of interorganizational relations to derive a model of exchange performance. Specifically, we investigate the role of trust in interfirm exchange at two levels of analysis and assess its effects on negotiation costs, conflict, and ultimately performance. Propositions were tested with data from a sample of 107 buyer-supplier interfirm relationships in the electrical equipment manufacturing industry using a structural equation model. The results indicate that interpersonal and interorganizational trust are related but distinct constructs, and play different roles in affecting negotiation processes and exchange performance. Further, the hypotheses linking trust to performance receive some support, although the precise nature of the link is somewhat different than initially proposed. Overall, the results show that trust in interorganizational exchange relations clearly matters.

Does Trust Matter? Exploring the Effectsof Interorganizational and Interpersonaltrust on Performance

This research considers how different features of informal networks affect knowledge transfer. As a complement to previous research that has emphasized the dyadic tie strength component of informal...

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Network Structure and Knowledge Transfer: The Effects of Cohesion and Range:

In this concluding article to the Management Science special issue on "Managing Knowledge in Organizations: Creating, Retaining, and Transferring Knowledge," we provide an integrative framework for organizing the literature on knowledge management. The framework has two dimensions. The knowledge management outcomes of knowledge creation, retention, and transfer are represented along one dimension. Properties of the context within which knowledge management occurs are represented on the other dimension. These properties, which affect knowledge management outcomes, can be organized according to whether they are properties of a unit (e.g., individual, group, organization) involved in knowledge management, properties of relationships between units or properties of the knowledge itself. The framework is used to identify where research findings about knowledge management converge and where gaps in our understanding exist. The article discusses mechanisms of knowledge management and how those mechanisms affect a unit's ability to create, retain and transfer knowledge. Emerging themes in the literature on knowledge management are identified. Directions for future research are suggested.

Managing Knowledge in Organizations: An Integrative Framework and Review of Emerging Themes

What explains differences in firms’ abilities to acquire competitive capabilities? In this paper we propose that a firm’s embeddedness in a network of ties is an important source of variation in the acquisition of competitive capabilities. We argue that firms in geographical clusters that maintain networks rich in bridging ties and sustain ties to regional institutions are well-positioned to access new information, ideas, and opportunities. Hypotheses based on these ideas were tested on a stratified random sample of 227 job shop manufacturers located in the Midwest United States. Data were gathered using a mailed questionnaire. Results from structural equation modeling broadly support the embeddedness hypotheses and suggest a number of insights about the link between firms’ networks and the acquisition of competitive capabilities. Copyright © 1999 John Wiley & Sons, Ltd.

https://www.jstor.org/stable/pdfplus/3094082.pdf

Bridging ties: a source of firm heterogeneity in competitive capabilities

Although research on trust in an organizational context has advanced considerably in recent years, the literature has yet to produce a set of generalizable propositions that inform our understanding of the organization and coordination of work. We propose that conceptualizing trust as an organizing principle is a powerful way of integrating the diverse trust literature and distilling generalizable implications for how trust affects organizing. We develop the notion of trust as an organizing principle by specifying structuring and mobilizing as two sets of causal pathways through which trust influences several important properties of organizations. We further describe specific mechanisms within structuring and mobilizing that influence interaction patterns and organizational processes. The principal aim of the framework is to advance the literature by connecting the psychological and sociological micro-foundations of trust with the macro-bases of organizing. The paper concludes by demonstrating how the framework can be applied to yield novel insights into traditional views of organizations and to stimulate original and innovative avenues of organizational research that consider both the benefits and downsides of trust.

https://www.jstor.org/stable/pdf/3086036.pdf

Bill McEvily

Papers

Does Trust Matter? Exploring the Effectsof Interorganizational and Interpersonaltrust on Performance

Network Structure and Knowledge Transfer: The Effects of Cohesion and Range:

Managing Knowledge in Organizations: An Integrative Framework and Review of Emerging Themes

Bridging ties: a source of firm heterogeneity in competitive capabilities

Trust as an Organizing Principle