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This paper examines a single longitudinal case study of a professional service network in the public accounting industry, a network intentionally created and formally organized to pursue residual referral revenue for the member firms. Applying and extending a coevolutionary perspective (Koza and Lewin 1998), the paper explores the antecedents and stimuli for the formation of the network, the network's morphology, the motivation of the network members, and the ways in which the network coevolves with its environment and with the adaptation practices of its members. We find that the network was initially created with the strategic intent of producing incremental income in exchange for cross-border referrals. However, we also find that this strategy reveals asymmetric positive returns, which produce serendipitous opportunities for individual member firms to bypass the original intent of network by entering each other's market. We propose that such tensions may be endemic to alliance networks, and we explore their sources and consequences on a variety of characteristics, including network stability, member opportunism, and control. The paper concludes with a model of the coevolutionary process.

We advance arguments for why and how a coevolutionary perspective and framework of analysis can provide a new lens and new directions for research in strategic management and organization studies. We identify the distinguishing properties of coevolution in an attempt to define coevolutionary research from other evolutionary research in social sciences. We also outline and discuss the empirical challenges and requirements for undertaking research within coevolutionary inquiry systems. In particular we stress the relevance of specifying coevolutionary models for reframing the selection adaptation standoff when applied to research on organization change over time, in general, and specifically to the mutation and emergence of new organizational forms. Furthermore, a coevolutionary framework has the potential to bridge and reintegrate strategy and organization theory teaching and research within a holistic framework. In our view such a reintegration is the sine qua non for studying organizational change over time and parallels the world of management practice where organization adaptations and strategy are intertwined and interdependent processes.

This paper proposes a co-evolutionary theory of strategic alliances. The paper proposes a framework which views strategic alliances in the context of the adaptation choices of a firm. Strategic alliances, in this view, are embedded in a firm's strategic portfolio, and co-evolve with the firm's strategy, the institutional, organizational and competitive environment, and with management intent for the alliance. Specifically, we argue that alliance intent may be described, at any time, as having either exploitation or exploration objectives. We further discuss how the morphology of an alliance—absorptive capacity, control, and identification—may be isomorphic with its intent, and, in the aggregate, drive the evolution of the population of alliances.

This paper argues that micro-level individual properties may be expressed in choices of macro-level organizational features. In particular, we believe that social-psychological attitudes of chief executive officers and general managers are a critical contingency in organization design and strategy that has not been developed sufficiently in previous studies. When actual organization designs devi ate from contingency-theory prescriptions, individual properties of top managers may account for within-industry variation. These attitudes include need for achievement, Machiavellianism, locus of control, egalitarianism, trust in people, tolerance for ambiguity, risk propensity, and level of moral reasoning. A compre hensive theory and summary propositions are deduced from related research. The theory includes prediction of the circumstances that facilitate and impede top managers' abilities to design organizations according to their preferences.