Strategic Networks’ Dynamics: Evidence of Member Firms’ Retention and Departures in Brazil

Thais Guerra Braga, Nelson Casarotto Filho, Douglas Wegner, Flávio Régio Brambilla and Bruno Morgado Ferreira ()
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Thais Guerra Braga: Department of Production System Engineering Program, Federal University of Santa Catarina (UFSC), Florianopolis 88040-900, SC, Brazil
Nelson Casarotto Filho: Department of Production System Engineering Program, Federal University of Santa Catarina (UFSC), Florianopolis 88040-900, SC, Brazil
Douglas Wegner: Business School, Fundação Dom Cabral (FDC), Nova Lima 34018-006, MG, Brazil
Flávio Régio Brambilla: Business Management and Communication Department, University of Santa Cruz do Sul (UNISC), Santa Cruz do Sul 96815-900, RS, Brazil
Bruno Morgado Ferreira: Polytechnic Institute of Viseu, Higher School of Technology and Management of Viseu, Research Center in Digital Services (CISeD), 3504-510 Viseu, Portugal

Administrative Sciences, 2024, vol. 14, issue 4, 1-13

Abstract: Strategic Networks (SNs) have emerged as a prevalent organizational form that offers synergistic benefits to participating firms. Despite their potential, SNs often experience member firms’ departure, raising concerns about their long-term viability. This study explores the factors that influence firms’ decisions to exit SNs by examining the interplay between network maturity, member firms’ satisfaction, and their individual characteristics. Using data from 338 Brazilian firms involved in SNs, a cluster analysis was employed to identify distinct groups of firms based on shared attributes. The findings revealed a significant association between higher perceived maturity, greater satisfaction with SNs, and lower likelihood of departure. These results suggest that network leaders should prioritize cultivating a mature and satisfying SN environment to mitigate member exits. By identifying the critical distinctions between the remaining and departing firms, this study provides valuable insights for network managers seeking to strengthen the longevity and stability of their strategic partnerships.

Keywords: strategic network; cooperation failure; cluster analysis; member firms’ departure; network dissolution (search for similar items in EconPapers)
JEL-codes: L M M0 M1 M10 M11 M12 M14 M15 M16 (search for similar items in EconPapers)
Date: 2024
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