Interorganizational Networks at the Network Level - Provan et al 2007

Question 1

How can network members be linked? (Provan et al, 2007)

Answer 1

Information, materials, financial sources, services and social support. Either informal (trust based) or formal (contract based)

Question 2

What is the trade-off between centralization and differentiation? (Provan et al, 2007)

Answer 2

They cannot simultaneously be maximized. High differentiation occurs with low centralization. High differentiation in networks proves to be important for the identification of unique clusters of organizations withing networks.

Question 3

What is the network development dependent on? (Provan et al, 2007)

Answer 3

The knowledge of the steering mechanisms and the meanings, goals and values of organizations within the network. A dominant core may drive how the network develops/evolves, they set the pace for the entire network

Question 4

Which 3 types of network governance are there? (Provan et al, 2007)

Answer 4

• Shared governance: Organizations in the network collectively work to make both strategic and operational decisions about how the network operates
• Lead-organization/hub-firm governance: All organizations may share a common purpose but where there is a more powerful, perhaps larger, organization that has sufficient resources and legitimacy to play a lead role
• NAO governance: Similiar to lead in that all activities and decisions are coordinated through one organization. He only oversees the network and is not involved in manufacturing of goods/services

Question 5

How can networks have negative outcomes? (Provan et al, 2007)

Answer 5

Networks that are formally constructed and do not emerge out of previous relationships are more likely to fail.
The stability of the whole network is in part dependent on the types of relationships occurring within subnetworks. As subnetworks evolve, the stability of the network will be determined by the nature of the organizations’ status within the network. Core organizations and their subnetworks will tend to stabilize the entire network, whereas actors that are more peripheral will destabilize it.
The organization learns from those organizations around them, and as they evolve, the network is more likely to evolve in ways that lead to network effectiveness. Without learning and evolution, the network may fail.