A Dynamic Theory of Network Failure

53 Pages Posted: 26 Aug 2014

See all articles by Anna Moretti

Anna Moretti

Ca Foscari University of Venice - Department of Management

Francesco Zirpoli

Università Ca' Foscari Venezia

Date Written: August 2014


Organizational and sociological research dealing with network governance has mainly focused on network advantages rather than on their problems or dysfunctionalities. This left partially unexplored the field of network failure. Even if some early attempts at explicitly theorizing network failures have been made, we argue that explanations based mainly on social conditions (ignorance and opportunism) offered by this emerging theory (e.g. Schrank and Whitford, 2011), are not exhaustive. In this article we report the results of our empirical investigation on the underperforming network between the worldwide famous Venice Film Festival and its local hospitality system (in Venice, Italy). In the case study we are presenting, we will show how institutions have not been able to inhibit opportunism and sustain trust among network members because of mobilizing practices developed across formal lines of communication. With this work we propose a dynamic theory of network failure, answering to the more general call for network theories to focus the attention on agency and micro-processes.

Keywords: Network failure, micro-processes, individual agency

JEL Classification: L22, L23, L1

Suggested Citation

Moretti, Anna and Zirpoli, Francesco, A Dynamic Theory of Network Failure (August 2014). Department of Management, Università Ca' Foscari Venezia Working Paper No. 2014/14, Available at SSRN: https://ssrn.com/abstract=2486870 or http://dx.doi.org/10.2139/ssrn.2486870

Anna Moretti (Contact Author)

Ca Foscari University of Venice - Department of Management ( email )

San Giobbe, Cannaregio 873
Venice, 30121

Francesco Zirpoli

Università Ca' Foscari Venezia ( email )

Cannaregio 873
Venice, Veneto 30121

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