Interorganizational Performance Management: A Co-evolutionary Model

Making interorganizational cooperation successful proves a daunting task. While current approaches to interorganizational performance management (PM) highlight why interorganizational cooperation matters and which phases are required, it remains silent on the dynamics of interorganizational PM. That is, how can PM evolve with and contribute to interorganizational cooperation. The purpose of this paper is to increase understanding of interorganizational PM. To this end, it develops a structure and process foundation of interorganizational value creation, and it provides a model that shows how processes of organizational and interorganizational PM co-evolve. The study starts by providing insight into differences between organizational and interorganizational PM. It then presents five approaches pertaining to performance in interorganizational cooperation. The paper distinguishes strategic-economic, PM, supply-chain management, organizational and marketing approaches. These approaches are related from a structure and process angle and are used to develop a co-evolutionary model of interorganizational PM. The resulting conceptualization has implications for research on new modes of complex and heterogeneous interorganizational value creation. The paper elaborates on these implications, pointing to new directions for future PM research.