Chapter 6 – Interorganizational Relationship

Question 1

Interorganizational relationships

Answer 1

the relatively enduring resource transactions, flows, and linkages that occur among two or more organizations

Question 2

Organizational ecosystem

Answer 2

a system formed by the interaction of a community of organizations and their environment, usually cutting across traditional industry lines

Question 3

Coopetition

Answer 3

the simultaneous engagement in both cooperative and competitive behaviours between two or more actors

Question 4

Resource Dependence

Answer 4

• The way organizations deal with each other to reduce dependence on the environment
• org type - dissimilar
• org relationship - competitive

Question 5

Collaborative Network

Answer 5

• Wherein organizations allow themselves to become dependent on other organizations to increase value and productivity for both
• org type - dissimilar
• org relationship - cooperative

Question 6

Population Ecology

Answer 6

• Which examines how new organization fill niches left open by established organizations, and how rich variety of new organizational forms benefits society
• org type - similar
• org realtionship - competitive

Question 7

Institutionalism

Answer 7

• How organizations legitimate themselves in the larger environment and design structures by borrowing ideas from each other
• org type - similar
• org realtionship - cooperative

Question 8

Resource Dependence

Answer 8

Resource dependence theory argues that organizations try to minimize their dependence on other organizations for the supply of important resources and try to influence the environment ro make resources available

Question 9

Resource strategies

Answer 9

• adapt or alter relationships (acquisitons, alliances, joint ventures)
• interlocking dictorships
• Trade organizations/ political activity

Question 10

Power strategies –

Answer 10

large, independent companies have power over small suppliers, supply chain relationships (digital linkages)

Question 11

Collaborative network

Answer 11

an emerging perspective whereby organizations allow themselves to become dependent on other organizations to increase value and productivity for all

Question 12

Why collaborate

Answer 12

Share risk, solve problems and improve performance, innovate, enter foreign markets, and create a safety net

Question 13

Traditional Orientation: Adversarial

Answer 13

• Low dependence
• Suspicion, competition, arms length
• Detailed performance measures, closely monitored
• Price, efficacy, own profits
• Limited information and feedback
• Legal resolution of conflict
• Minimal involvement and up-front investment, separate resources
• Short-term contracts
• Contract limiting the relationship

Question 14

New Orientation: Partnership

Answer 14

• High dependence
  -Trust, addition of value to both sides, high commitment
• Loose performance measures, problems discussed
• Equity, fair dealing, both profit
• Electronic linkages to share key information, problem feedback, and discussion
• Mechanisms for close coordination, people on-site
• Involvement in partners product design, shared resources
• Long term contracts
• Business assistance beyond the contract

Question 15

Population ecology perspective

Answer 15

a perspective in which the focus is on organizational diversity and adaptation within a community or population or organizations

Question 16

Population

Answer 16

a set of organizations engaged in similar activities with similar patterns of resource utilization and outcomes

Question 17

Organizational form

Answer 17

an organization’s specific technology, structure, products, goals, and personnel

Question 18

Niche

Answer 18

a domain of unique environmental resources and needs

Question 19

Process of Ecological Change

Answer 19

• variation
• selection
• retention

Question 20

Variation

Answer 20

appearance of new organizational forms in response to the needs of the external environment; analogous to mutations in biology

Question 21

Selection

Answer 21

the process by which organizational variations are determined to fit the external environment; variations that fail to fit the needs of the environment are “selected out” and fail

Question 22

Retention

Answer 22

The preservation and institutionalization of selected organizational forms

Question 23

Strategies for Survival

Answer 23

• struggle for existence
• generalists
• specilaists

Question 24

Struggle for existence

Answer 24

a principle of the population ecology model that holds that organizations are engaged in a competitive struggle for resources and fighting to survive

Question 25

Generalists

Answer 25

an organization that offers a broad range of products or services and serves a broad market

Question 26

Specialists

Answer 26

an organization that has a narrow range of goods or services or serves a narrow market
- Generally more competitive

Question 27

Institutional perspective

Answer 27

a view that holds that, under high uncertainty, organizations imitate others in the same institutional environment
- Concerned with the environments set of intangible norms and values that shape behaviour and signal legitimacy, as opposed to the tangible elements of technology and structure

Question 28

Institutional environment –

Answer 28

norms and values from stakeholders (customers, investors, boards, government, etc.) that organizations try to follow in order to please stakeholders

Question 29

Legitimacy

Answer 29

the general perception that an organization’s actions are desirable, proper, and appropriate within the environment’s system of norms, values, and beliefs

Question 30

Technical Design

Answer 30

the day-to-day work, technology, and operating requirements. It is governed by norms of rationality and efficiency

Question 31

Institutional

Answer 31

governed by expectations from the external environment

Question 32

Institutional similarity

Answer 32

(institutional isomorphism) – the emergence of common structures, management approaches, and behaviours among organizations in the same field

Question 33

Core Mechanisms

Answer 33

• Mimetic forces
• Coercive forces
• Normative forces

Question 34

Mimetic forces

Answer 34

Under conditions of uncertainty, the pressure to copy or model other organizations that appear to be successful in the environment

Question 35

Coercive forces

Answer 35

External pressures such as legal requirements exerted on an organization to adopt structures, techniques, or behaviours similar to other organizations

Question 36

Normative forces

Answer 36

Pressures to adopt structures, techniques, or management processes because they are considered by the community to be up-to-date and effective