Managing paradoxical tensions toward relationship value in interorganizational networks

Abstract

This thesis explored the themes: of paradox management, paradoxical tensions, and relationship value. The thesis objective was to investigate how paradox management contributes to the relationship value in interorganizational networks. In particular, the research explored how tensions emerged from paradoxical elements in interorganizational networks, the role of paradox management in preventing and managing tensions, and the effects of paradoxical tensions on the relationship value in interorganizational networks. A systematic literature review that combined the interorganizational and the paradox literature showed research gaps that guide this study through an inductive approach. Multiple case studies were conducted to meet the objectives. The theoretical sample was composed of two R&D Networks and two Retail Networks. Through within-case analyses and cross-case analyses, the study could present propositions regarding the paradox management contribution to the relationship value in interorganizational networks. Data from the empirical field showed that: (a) contextual factors influence the strength of paradoxes’ poles, which indicates the best response to prevent latent tensions from escalating; (b) paradox management practices may prevent tensions by reframing paradox poles to network members; (c) tensions may emerge when a paradox pole fail to meet network members’ expectations; (d) paradox management may mediate the conflicts to keep paradoxes in an equilibrium state, where tensions may not emerge; (e) effective paradox management may prevent paradoxical tensions from harming relationship value in interorganizational networks. These findings contribute to the literature by a paradigm break, which expands the knowledge of previous models and answers a call by the literature regarding which conditions would guide the choice of the best response to paradoxes. Managerial contributions were presented, as well as recommendations for future studies, which may enable the management of paradoxes.