Clients’ outcomes from providers’ networks: the role of relational exclusivity and complementary capabilities

Abstract

Organizations have leeway in how much they employ their network relations to the benefit of their clients. When do they do so more rather than less? Relying on research on trust and knowledge absorption, the authors suggest that providers’ network relations generate better outcomes for their clients when these relations are concentrated in a limited, exclusive set of partners. The authors argue that providers’ relational exclusivity benefits clients because it facilitates the awareness and use of partners’ complementary client service capabilities. An analysis of a regional network of patient referrals among 110 hospitals supported this argument. The study highlights the role of interorganizational partnership networks in activating client service capabilities and stimulates further inquiry into providers’ network features that benefit the users of their services.