398 CHAPTER NOTES 05 INTERORG RELN

398 CHAPTER NOTES 05 INTERORG RELN - CHAPTERFIVE

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CHAPTER FIVE INTERORGANIZATIONAL RELATIONSHIPS CHAPTER OVERVIEW Chapter 5 explores the increasingly dense web of relationships among organizations, which is changing the  nature   of   management.     Managers   must   now   deal   effectively   with   a   whole   set   of   interorganizational  relationships, rather than resting in the security of managing internal affairs of their own firm, buying from the  lowest bidder, and responding  loosely  to outside forces in the environment.  Interorganizational research is  yielding   perspectives   such   as   organizational   ecosystems,   resource   dependence,   networks,   population  ecology, and institutionalism. Organizational Ecosystems    James Moore’s view is that organizations are evolving into business ecosystems, formed by the  interaction of a community of organizations, across traditional industry lines, and their environment.  Interorganizational relationships  are defined as the relatively enduring resource transactions, flows,  and linkages that occur among two or more organizations, whereas  organizational ecosystems  are  the systems formed by the interaction of a community of organizations and their environment.  Is Competition Dead? In   the   sense   that   a   single   company   competing   for   supremacy   with   other   stand-alone  businesses no longer exists, competition is dead.  However, a new form of competition is  intensifying.     Companies   find   that   they   must   coevolve   with   others   in   the   ecosystem.  However, cooperation often exists at the same time that companies are using their strength  to win conflicts and negotiations. The Changing Role of Management Managers think about horizontal processes (see chapter 3) rather than vertical structures.  Important initiatives cut across the boundaries separating organizational units.   Business  leaders will lead economic co-evolution in a broader leadership role than ever before.   Interorganizational Framework   Relationships among organizations can be characterized by whether the organizations are  similar or dissimilar, and whether the relationships are competitive or cooperative.   The  remainder of this chapter is devoted to the perspectives represented within this framework.   Resource Dependence        1
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This traditional theory of relationships argues that organizations try to minimize their dependence on  other organizations for important resources, and try to influence the environment to make resources 
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This note was uploaded on 02/06/2011 for the course BUSINESS 398 taught by Professor Allanmarshal during the Spring '11 term at Wilfred Laurier University .

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398 CHAPTER NOTES 05 INTERORG RELN - CHAPTERFIVE

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