WITHDRAWAL OF COOPERATION AND INTERORGANIZATIONAL NETWORK CLOSURE: AT WHAT POINT ARE THESE APPROACHES? DOI: 10.5585/rai.v7i1.341

Abstract

The relationships in collaborative networks seek to leverage the capacity of organizations in an attempt to improve organizational effectiveness. It realizes, however, that the attempt to reproduce interorganizational networks of systems in the economies where the conflict overrides the problems of coordination has not been successful. A simple integration of organizations is not productive enough to bring out competitive strategies and ingredient bulk of new principles of sustainable organizations. Thus, this study aims to discuss the reasons behind these events, culminating with the presentation of a theoretical scheme that explains the factors that lead to exit firms in a network and the closure of networks. Through literature review of the articles (secondary data), we compared the different situations and perceptions, companies and networks. Reaching relevant analysis about the problems of networks, we explored the reasons that lead firms to leave the network and even the closure of the network itself. In response to the problems of this study, the results showed some variables;size of participating companies, asymmetry of information andthe relationships of mistrust. The management process developed by the networks and cost benefit of this movement. All these variables, according to this analysis, influence business decisions to stay in the network or vice versa which can help the networks that seek success in their cooperation.