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DB FORUM 3 MODULE 61Types of Network Organizations and their impact on theenvironmental process.Valerie SohSchool of Business, Liberty UniversityAuthor NoteValerie SohI have no known conflict of interest to disclose.Correspondence concerning this article should be addressed to Valerie SohEmail: [email protected]
DB FORUM 3 MODULE 62IntroductionThe world today has been influenced by technological developments which have greatlychanged the way businesses operate. Several organizations are now connected through thecreation of informal networks. The networks established do not depend on a particular structurebut are more focused on completing the assigned task.Network organizations are defined byelements of structure, process, and purpose. Network organizations combine co-specialized andpossibly intangible assets under shared control. Their structure and joint ownership are essentialto achieve an integration of assets. Intercommunication between network organizations isefficient and flexible (Kavadarli, 2017).The structure of the network organization is veryflexible. When several organizations with a common goal of making profits come together undera particular network, they develop a competitive advantage in the market where they operate.The structure of a network organization requires joint ownership of the assets, flexibility incommunication amongst the various organizations that belong to the network. Networkorganizations can be long-term or short term. Separation or joining a network organization is inthe form of units. The participants in the network organization are assigned different rolesthrough which they can execute and make decisions that will be beneficial to all members of thenetwork organization. In a network organization, the purpose is the same for all its participants.A virtual organization is a form of network organization. The various types of networkorganizations and their impact on the environmental process will be discussed further in thesubsequent paragraphs.Stable network organizations are made up of a centralized organization whose operationshave been outsourced to different firms. In a stable network organization, the suppliers are
DB FORUM 3 MODULE 63granted access to the centralized organization’s computers. The centralized organization hasdifferent contracts that are long-term, joint ventures, and alliances. Stable networks comprise aloose association of assets and business in one company and are subject to forces of the market.Internal network organizations constitute a big firm that considers its production unit as differentprofit centers. The units can market their products in the global market and not limited to thefirm. With the internal network, the market prices influence how the units determine to increaseor reduce their prices to gain a competitive edge in the market. Dynamic network organizationsare involved in a lot of outsourcing. With a dynamic network organization, the integrator

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Term
Summer
Professor
TBA
Tags
The Bible, Organizational studies, network organizations, TYPES OF NETWORK ORGANIZATIONS

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