The Transient Collaborative Network Approach: Theoretical and Practical Considerations

This conceptual article analyzes and connects theory to the practice of a novel inter-organizational form we call the transient collaboration network or TCN approach. Field observations in China suggest that emerging entrepreneurs enter into collaborations with supply chain partners under very different mindsets regarding interorganizational relationships, trust, collaboration and long-term expectations from traditional supply network practices. Briefly, these organizations cannot themselves build all resources needed for competitive advantages in volatile business environments. These entrepreneurs develop the TCN approach to allow their organizations to achieve full potential to locate and access the right resources at the right time through trusted collaborations in these dynamic or turbulent business environments. This paper analyzes principles that govern TCN interactions through the lens of Structural Contingency Theory, as extended to the inter-organizational level. Propositions explain how relations between structures and contingencies affect inter-organizational collaborative performances, and suggest how the TCN approach may be applicable to supply chain networks in general.