The Life Cycle of Small-firm Networks: An Evaluation of Brazilian Business Networks

Interorganizational agreements and cooperative business networks became an important strategy for companies facing competitive disadvantages. Specially small and medium firms adopted collaborative network models as a way to overcome common problems. Over 1,000 small-firm networks (SFNs) are estima...

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Main Authors: Douglas Wegner, Rejane Maria Alievi, Heron Sérgio Moreira Begnis
Format: Article
Language:English
Published: Associação Nacional de Pós-Graduação e Pesquisa em Administração (ANPAD) 2015-01-01
Series:BAR: Brazilian Administration Review
Subjects:
Online Access:http://www.anpad.org.br/periodicos/arq_pdf/a_1569.pdf
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author Douglas Wegner
Rejane Maria Alievi
Heron Sérgio Moreira Begnis
author_facet Douglas Wegner
Rejane Maria Alievi
Heron Sérgio Moreira Begnis
author_sort Douglas Wegner
collection DOAJ
description Interorganizational agreements and cooperative business networks became an important strategy for companies facing competitive disadvantages. Specially small and medium firms adopted collaborative network models as a way to overcome common problems. Over 1,000 small-firm networks (SFNs) are estimated to have been created in Brazil since the year 2000. This study aimed to propose a SFNs life cycle model, applying it to a sample of twenty-eight SFNs established in two regions of southern Brazil. The results revealed that 68% of the analyzed SFNs are declining or no longer in business. Among the active business networks, 21% remain at the development stage, and only 11% have achieved consolidation. Most SFNs analyzed fell into a stage of decline early on in the life cycle, incapable of reaching Consolidation. Although results are restricted to the analyzed sample, our study highlights that major managerial efforts are necessary to reach the consolidation stage due to network complexity and expectations of network members. We conclude the paper by presenting subsidies for public policy makers and strategies that SFNs may adopt to reach the status of consolidated networks.
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spelling doaj.art-77a0e513de5c45e7a20deac996d1f3d42023-01-02T23:38:14ZengAssociação Nacional de Pós-Graduação e Pesquisa em Administração (ANPAD)BAR: Brazilian Administration Review1807-76922015-01-011213962http://dx.doi.org/10.1590/1807-7692bar2015140030The Life Cycle of Small-firm Networks: An Evaluation of Brazilian Business NetworksDouglas Wegner0Rejane Maria Alievi1Heron Sérgio Moreira Begnis2Universidade do Vale do Rio dos Sinos – UNISINOSUniversidade de Santa Cruz do Sul – UNISCUniversidade de Santa Cruz do Sul – UNISCInterorganizational agreements and cooperative business networks became an important strategy for companies facing competitive disadvantages. Specially small and medium firms adopted collaborative network models as a way to overcome common problems. Over 1,000 small-firm networks (SFNs) are estimated to have been created in Brazil since the year 2000. This study aimed to propose a SFNs life cycle model, applying it to a sample of twenty-eight SFNs established in two regions of southern Brazil. The results revealed that 68% of the analyzed SFNs are declining or no longer in business. Among the active business networks, 21% remain at the development stage, and only 11% have achieved consolidation. Most SFNs analyzed fell into a stage of decline early on in the life cycle, incapable of reaching Consolidation. Although results are restricted to the analyzed sample, our study highlights that major managerial efforts are necessary to reach the consolidation stage due to network complexity and expectations of network members. We conclude the paper by presenting subsidies for public policy makers and strategies that SFNs may adopt to reach the status of consolidated networks.http://www.anpad.org.br/periodicos/arq_pdf/a_1569.pdfsmall-firm networks (SFNs); cooperation; life cycle; interorganizational relations.
spellingShingle Douglas Wegner
Rejane Maria Alievi
Heron Sérgio Moreira Begnis
The Life Cycle of Small-firm Networks: An Evaluation of Brazilian Business Networks
BAR: Brazilian Administration Review
small-firm networks (SFNs); cooperation; life cycle; interorganizational relations.
title The Life Cycle of Small-firm Networks: An Evaluation of Brazilian Business Networks
title_full The Life Cycle of Small-firm Networks: An Evaluation of Brazilian Business Networks
title_fullStr The Life Cycle of Small-firm Networks: An Evaluation of Brazilian Business Networks
title_full_unstemmed The Life Cycle of Small-firm Networks: An Evaluation of Brazilian Business Networks
title_short The Life Cycle of Small-firm Networks: An Evaluation of Brazilian Business Networks
title_sort life cycle of small firm networks an evaluation of brazilian business networks
topic small-firm networks (SFNs); cooperation; life cycle; interorganizational relations.
url http://www.anpad.org.br/periodicos/arq_pdf/a_1569.pdf
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