Growth strategies and governance of horizontal business networks: the case of the biggest German cooperative food retail network

Authors

  • Douglas Wegner Universidade Federal do Rio Grande do Sul - UFRGS
  • Antonio Domingos Padula Universidade Federal do Rio Grande do Sul - UFRGS

DOI:

https://doi.org/10.5007/2175-8077.2011v13n30p220

Abstract

Several growth strategies may be adopted by cooperative retail networks, but these strategies create dilemmas about how to organize business networks with a large number of participants and the adjustments in the governance system that are necessary to facilitate growth. The article examines the relations between the growth strategies adopted by a horizontal business network and its governance system. We analyze the case of Edeka, a centennial cooperative network, leader in food retail in Germany, showing its growth strategies and implications for the network structure. The case study was based on various secondary data sources and focuses the whole network – and not the networked firms – as the unit of analysis. Results indicate that, in order to grow, the network changed its governance structure and the process of participation of members in decision making, creating a hierarchical structure with professional management. The paper contributes to the discussions on cooperative governance and demonstrates that governance systems are transient and adapt to the network strategies. From a management viewpoint, the results show the effects of the growth strategies adopted by business networks, regarding the role of network managers and entrepreneurs in network management.

Author Biographies

Douglas Wegner, Universidade Federal do Rio Grande do Sul - UFRGS

Doutor em Administração pela Universidade Federal do Rio Grande do Sul – UFRGS. Professor Adjunto do Mestrado Profissional em Administração da Universidade de Santa Cruz do Sul - UNISC.

Antonio Domingos Padula, Universidade Federal do Rio Grande do Sul - UFRGS

Doutor em Administração de Empresas pela Université de Sciences Sociales de Grenoble. Professor Associado do Programa de Pós-Graduação em Administração da Universidade Federal do Rio Grande do Sul - UFRGS.

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Published

2011-08-10

How to Cite

Wegner, D., & Padula, A. D. (2011). Growth strategies and governance of horizontal business networks: the case of the biggest German cooperative food retail network. Revista De Ciências Da Administração, 13(30), 220–248. https://doi.org/10.5007/2175-8077.2011v13n30p220

Issue

V.13, n.30, maio/agosto de 2011

Section

Articles

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