The dynamics of cooperation: proposal of a life cycle model of small-firm networks

Abstract

The dynamics of interorganizational networks (IONs) is not yet extensively studied in the organizational theory and limited contributions have been made to practical management. This study aims to review the theory surrounding IONs life cycle and propose a model adapted to the features of small-firm networks (SFNs). A preliminary model was developed and seven dimensions for analysis were identified from a theoretical review and interviews with experts. As a result, this article presents a SFN life cycle model composed of six stages and their respective descriptions: Conception, Birth & Formalization, Develop-ment, Consolidation & Maturity, Decline and Dissolution. The presence of transformation or restructuring periods is pointed out as necessary for the networks to remain attractive over time or to reverse a declining trend.