Inter-organizational networking in emerging markets

Personal networks are essential in emerging markets (EMs) as they serve to fill formal institutional voids by creating arrangements amongst actors based on trust and reciprocity. Nevertheless, the processes of interorganizational networking development are scant in the EM literature. This study aims to fill this gap and provide an in-depth "long history" analysis of Russia's and India's firms' networking arrangements from organizational inception to the most recent history. We find that as organizations grow and institutional environments improve, inter-organizational networks develop from strong personal to arms-length contractual ties between organizations. Further, as organizations in EMs grow, internalization and vertical integration force firms to engage in proprietary networks based on ownership commitments. The study highlights the continuing relevance of personal networks based on various affiliations despite the prevalence of formal networks in the mature stages of organizational development. This study is unique in proffering inter-organizational development processes in EMs.