Partner Selection, Partner Behavior, and Business Network Performance – An Empirical Study on German Business Networks

Purpose – Business networks have to coordinate each of their partners' goals and expectations, as a lack of partner compatibility and goal incongruence could lead to conflict and opportunistic behavior. These potential problems highlight the relevance of partner selection as a means of minimizing opportunistic behavior by building trust in and commitment to a network that influences network performance. The purpose of this paper is to provide insights into partner selection as a management control mechanism, which controls the behavior and network performance of business network partners. Design/methodology/approach – The paper provides an analysis of the effects of a well-executed partner selection on business networks' performance. The paper further analyzes the effects of the mediating role of trust within, commitment to, and the risk of opportunistic behavior in business networks. Consequently, the paper highlights the pivotal role of partner selection in business networks as a management control mechanism. Findings – The results provide an exploratory empirical insights into the cause-and-effect relationship between partner selection, partners' behavior, and network performance. Partner selection has effects on trust, opportunism, and commitment. The selection of a partner is a very important managerial control task within business networks, as appropriate selection is a threshold condition for a successful business network. Research limitations/implications – Since the study is based on empirical data collected by individuals, it could be open to general criticism regarding the methodology of broad empirical analysis. Time-lagging effects also remain unrevealed as the data represent only a point in time. Some effects cannot be verified indisputably, while the low variance in some of the construct results is only indicative of suggestions. Originality/value – This paper provides insights into partner selection as a management control mechanism, which controls the behavior and network performance of business network partners