Chapter 6 – Interorganizational Relationship Flashcards
Interorganizational relationships
the relatively enduring resource transactions, flows, and linkages that occur among two or more organizations
Organizational ecosystem
a system formed by the interaction of a community of organizations and their environment, usually cutting across traditional industry lines
Coopetition
the simultaneous engagement in both cooperative and competitive behaviours between two or more actors
Resource Dependence
- The way organizations deal with each other to reduce dependence on the environment
- org type - dissimilar
- org relationship - competitive
Collaborative Network
- Wherein organizations allow themselves to become dependent on other organizations to increase value and productivity for both
- org type - dissimilar
- org relationship - cooperative
Population Ecology
- 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
Institutionalism
- How organizations legitimate themselves in the larger environment and design structures by borrowing ideas from each other
- org type - similar
- org realtionship - cooperative
Resource Dependence
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
Resource strategies
- adapt or alter relationships (acquisitons, alliances, joint ventures)
- interlocking dictorships
- Trade organizations/ political activity
Power strategies –
large, independent companies have power over small suppliers, supply chain relationships (digital linkages)
Collaborative network
an emerging perspective whereby organizations allow themselves to become dependent on other organizations to increase value and productivity for all
Why collaborate
Share risk, solve problems and improve performance, innovate, enter foreign markets, and create a safety net
Traditional Orientation: Adversarial
- 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
New Orientation: Partnership
- 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
Population ecology perspective
a perspective in which the focus is on organizational diversity and adaptation within a community or population or organizations
Population
a set of organizations engaged in similar activities with similar patterns of resource utilization and outcomes
Organizational form
an organization’s specific technology, structure, products, goals, and personnel
Niche
a domain of unique environmental resources and needs
Process of Ecological Change
- variation
- selection
- retention
Variation
appearance of new organizational forms in response to the needs of the external environment; analogous to mutations in biology
Selection
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
Retention
The preservation and institutionalization of selected organizational forms
Strategies for Survival
- struggle for existence
- generalists
- specilaists
Struggle for existence
a principle of the population ecology model that holds that organizations are engaged in a competitive struggle for resources and fighting to survive
Generalists
an organization that offers a broad range of products or services and serves a broad market
Specialists
an organization that has a narrow range of goods or services or serves a narrow market
- Generally more competitive
Institutional perspective
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
Institutional environment –
norms and values from stakeholders (customers, investors, boards, government, etc.) that organizations try to follow in order to please stakeholders
Legitimacy
the general perception that an organization’s actions are desirable, proper, and appropriate within the environment’s system of norms, values, and beliefs
Technical Design
the day-to-day work, technology, and operating requirements. It is governed by norms of rationality and efficiency
Institutional
governed by expectations from the external environment
Institutional similarity
(institutional isomorphism) – the emergence of common structures, management approaches, and behaviours among organizations in the same field
Core Mechanisms
- Mimetic forces
- Coercive forces
- Normative forces
Mimetic forces
Under conditions of uncertainty, the pressure to copy or model other organizations that appear to be successful in the environment
Coercive forces
External pressures such as legal requirements exerted on an organization to adopt structures, techniques, or behaviours similar to other organizations
Normative forces
Pressures to adopt structures, techniques, or management processes because they are considered by the community to be up-to-date and effective
