May 29, 2024. Interorganizational networks are transforming the way organizations in Latin America tackle major global challenges by integrating foundations, businesses, and communities in a collaborative effort that optimizes resources and fosters sustainable solutions. Additionally, it highlights how strategic brokers facilitate these connections, driving lasting social and environmental impact through innovative models of coordination and leadership.

For decades, social impact organizations in Latin America have conducted their work following various models of on-the-ground action. A postgraduate study led by José Valverde, executive director of VIVA Idea, shows how the AVINA Foundation and the organizations involved in Redes Chaco have managed to apply and develop a model of “organizational networks” that elevates impact to a higher level.

The concept of interorganizational networks is revolutionizing the way organizations face major global challenges, as collaboration among multiple actors, guided by key intermediaries, optimizes resources and strengthens impacts, while also including diverse perspectives and knowledge, creating more effective and sustainable solutions.

Although these concepts are not new in their application, as they explain behaviors already applied in the field, their conscious study and application are still incipient. Scientific literature defines interorganizational networks as collaboration systems where entire organizations, instead of individuals, maintain structured relationships to achieve common goals.

These networks allow entities to leverage shared resources and strengths, facilitating coordination and leadership through specific structures and the intermediation of brokers who connect actors and foster effective collaboration.

José Valverde, executive director of VIVA Idea and PhD in organizational studies and cultural theory from the University of St Gallen, Switzerland, highlighted in his doctoral research how these characteristics have forced organizations to rethink their collaboration strategies, moving from an internal focus to one that favors the creation of interorganizational networks. “Organizations can no longer operate in silos if they wish to successfully address these global challenges. They must learn to work in networks, leveraging the strengths and resources of diverse entities,” Valverde asserted.

Brokers Igniters or Intermediaries

The “intermediaries” in community action on the ground are called “strategic brokers” or “brokers igniters.” These individuals or organizations facilitate the creation, coordination, and sustainability of interorganizational networks. Additionally, they connect various organizations, manage the necessary funding for the network, empower members, enable the generation of collaborative agendas, and reduce their involvement once the network is consolidated and can operate autonomously.

To fully understand the role of brokers or intermediaries in interorganizational networks, it is essential to recognize that these intermediaries operate among at least three interacting actors. José Valverde explained that brokers can adopt two fundamental behaviors. “The first is to transmit information or resources from one actor to another without creating a direct connection between them,” detailed Valverde.

A typical example of this behavior can be seen in the work of a financial or real estate broker, where the intermediary facilitates the transaction without necessarily connecting the involved parties. The second behavior occurs when the broker generates direct connections between actors. Valverde illustrated this point by saying, “A broker can introduce two actors who did not know each other and facilitate a new collaboration, or identify opportunities for joint work between previously known actors.”

Both types of behavior are crucial for the success of interorganizational networks, as they not only allow the flow of information and resources but also create new opportunities for collaboration and synergy among the diverse actors in the network. For José Valverde, the role of these intermediaries “is crucial for establishing valuable connections and fostering effective collaboration that maximizes the impact and sustainability of the network” and was an essential part of his thesis work, which earned him a PhD in organizational studies and cultural theory from the University of St Gallen, Switzerland.

For VIVA Idea, this work is fundamental, as it contributes to the VIVA Ecosystem, composed of Masisa, Fundes, Fundación Avina, Marviva, and VIVA Idea, by adding knowledge to the empirical contributions of organizations in their field projects.

Urs Jäger, director of Research at VIVA Idea and professor at INCAE Business School, stated that this type of research seeks to find the root of the impact “elements that can be key in the actions of organizations to replicate models in other projects and regions, as well as systematize contributions to sustainability and social progress beyond the impact itself. “This is about using action research in our own organizations to understand, project, and scale the impact that is already significant in the projects we manage,” explained Jäger.

Evolution Towards Interorganizational Networks

Interorganizational networks can be understood similarly to our personal networks, with the difference being that instead of individuals, they consist of entire organizations maintaining relationships with each other.

This collaboration model is relevant not only for for-profit organizations but also for non-profit ones. Notable examples in the commercial sector include technological alliances such as the one between Sony, Toshiba, and IBM to develop the Cell processor, and distribution networks like those of Walmart and Amazon. In the non-profit sector, notable networks include Doctors Without Borders and the International Federation of Red Cross and Red Crescent Societies, which coordinate efforts in multiple countries to respond to emergencies and disasters.

“These networks, whether in the commercial or non-profit sector, require specific structures to coordinate and lead effectively. Shared governance, lead organization, and network administrative organization are three types of structures that facilitate this coordination,” explained Valverde.

To coordinate interorganizational networks effectively, it is essential to understand the structures that can facilitate this collaboration. José Valverde explained that there are three main types of coordination structures: “The first, called ‘shared governance,’ is characterized by giving all network members a voice and vote in decision-making, thus fostering inclusion and equitable participation of all involved actors.”

The second structure, known as “lead organization,” has the main characteristic of having a leading organization within the network. Valverde clarified that “this entity can be democratically selected by the network members or imposed by an external funder.”

Finally, the “network administrative organization” differs from the previous structure in that the leading organization is not a member of the network but an external entity that can be democratically elected or designated by a funder.

Beyond the formal coordination structures, Valverde emphasized the importance of leadership in managing these networks. “The interconnection between organizations, along with the absence of clearly defined lines of command, highlights the importance of interorganizational relationships,” noted Valverde. In this context, traditional hierarchical leadership concepts are ineffective.

“It is essential to adopt the role of broker, an intermediary who facilitates connections, the flow of information, and collaboration among the various actors in the network,” added the researcher. This approach not only improves the network’s efficiency but also ensures adaptable and resilient leadership in the face of the complex challenges these organizations face.

The Great Latin American Example

Redes Chaco represents a notable example of how interorganizational networks can bring together foundations, businesses, and community-based organizations to highlight crucial issues for social progress and promote collective actions in the Gran Chaco Americano. This network of networks aims to generate effective governance through collaboration among various actors.

The Gran Chaco Americano is a biome of great global importance due to its contribution to the planet’s health, its biological diversity, and its cultural richness. However, it faces significant challenges such as environmental degradation, biodiversity loss, and high poverty rates. These challenges require concerted attention and action, and this is where Redes Chaco plays a fundamental role.

The purpose of Redes Chaco is to be an active agent in the defense, development, and preservation of the territory, promoting and protecting the essential connections between the various habitats, species, and cultures that make up its ecosystems. Since its creation in 2008, as a result of a collaborative initiative between several civil society organizations, Redes Chaco has worked to position the Gran Chaco Americano as a unique biocultural space with an identity that transcends national borders.

Redes Chaco has established itself as a platform that connects a wide range of actors in the territory, including civil society organizations, local governments, businesses, communities, and residents. This network facilitates the exchange of learnings, knowledge, and strategies, contributing to the creation of a collective impact that addresses the challenges of the Gran Chaco Americano in an integral and sustainable manner.

Challenges and Strategies for Leading Interorganizational Networks

Working in interorganizational networks presents several challenges. The lines of command are not clearly defined, resource management is complex due to the number of actors involved, and network funding can become a significant challenge. Additionally, establishing, scaling, and maintaining these networks over time requires careful planning and leadership.

To overcome these challenges, Valverde emphasizes the importance of adopting brokerage roles instead of the classic hierarchical leadership models. “The broker becomes a vital intermediary who not only connects actors and resources but also generates direct connections between them, facilitating collaboration and the flow of information,” he added.

The broker igniter, a figure identified in the fieldwork of the VIVA Ecosystem organizations, is crucial in this process. Their function is to connect other brokers, finance the establishment of the network, empower network members, allow actors to generate their own agenda, and reduce their involvement once the network takes on a life of its own.

Impact and Sustainability of Interorganizational Networks

For interorganizational networks to have a sustainable impact, it is necessary for the brokers within the network to carry out several key activities: connecting various organizations to form consortia, managing relationships with funders, promoting collaborations between projects, and reactivating previous connections to continue the impact beyond the established funding cycles. “These networks allow for more effective management of high complexity, radical uncertainty, and the inherent difficulties of major global challenges. By including the voices of communities in the co-creation processes of solutions, greater ownership and sustainability of the impact is guaranteed,” concluded Valverde.

For VIVA Idea, José Valverde’s research demonstrates the necessary understanding of the impact of organizational networks in Latin America. The research not only highlights the need for new forms of leadership and collaboration but also offers a practical framework for organizations from various sectors to come together and jointly face global challenges.

“This is part of the vision we implement at VIVA Idea,” explained Urs Jäger, adding, “We use research not only to understand the context but also to propose tools and solutions to the problems faced by the population that can be effectively applied on the ground.” This, explained the director of Research, adds value to the impact from research and knowledge.

VIVA Idea is an organization dedicated to promoting social progress and sustainability in Latin America, using knowledge to enhance impact through research and the creation of tools that allow scaling specific actions. With over a decade of research in the region, VIVA Idea offers solutions based on a deep understanding of the context, specifically designed for companies and organizations that want to elevate their impact on the ground.

These strategies integrate sustainability as a competitive advantage, based on the premise that applicable knowledge and alternatives to current challenges must be generated from the context, using research and technology.

VIVA Idea has digital tools that allow it to offer consultancy services to companies and actors in various localities in Latin America, helping them identify where their impact is most needed, how to align actors with different objectives, and how to understand the potential impact of the company.