Organizing long duration interdependence in Lloyd's of London: Persistence in a part-whole paradox of organizing

A critical challenge for interorganizational groups is to organize themselves in a way that balances the interests of the group as a whole and those of individual participants. How interorganizational groups manage these 'paradoxes of organizing' to ensure long-term survival remains, however, unclear. We investigate this phenomenon through a historical case study of Lloyd's of London, arguably the most prominent and long-standing interorganizational group in the global insurance industry. Our historical analysis shows that the interdependence between the group as a whole and its participants deepened progressively over more than two centuries as collective organizing solutions were adopted and were managed by a central collective actor. We develop a process model of dynamic management of part-whole interdependence which explains how the cumulative development of an infrastructure of interdependence, incorporating increasing responsibilities of the central actor, enables management of the paradox of organizing throughout its persistent historical manifestations and inherent tensions.