Interorganizational learning and the dynamics of chain relationships

Interorganizatonal relationships in general and chain relationships in particular are a critical channel for interorganizational learning. Learning may not only be a result of interorganizational relationships, however; it may also be a primary cause of them. We examine this idea in the empirical context of Manhattan hotels and their relationships with hotel chains. Our analysis shows that hotels are likely to form relationships when they have very low, or very high levels of their own operating experience. The relationship between hotel and chain is less likely to dissolve when the chain has more operating experience in the hotel's local market, and more likely to dissolve when the chain has more operating experience in non-local markets. The duration of a chain relationship has a ∩-shaped effect on its dissolution, indicating that relationships go through a honeymoon period, and that the parties to a relationship learn to better collaborate over time.