Final Project Part I

5

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Interorganiza+onal Rela+onships

©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Organiza(on Theory and Design Twel%h Edi+on Richard L. Da%

Organiza+onal Ecosystems

Interorganiza+onal rela+onships – resource transac+ons, flows, and linkages

that occur among two organiza+ons

Organiza+onal ecosystem – a system formed by the interac+on of a community of organiza+ons and their environment

©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

2

Is Compe++on Dead?

•  Changing technology and new regula+ons present organiza+ons with interna+onal compe++on

•  Organiza+ons are involved in complex networks; the number of corporate alliances are increasing

•  Tradi+onal compe++on no longer exists

©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

3

Organiza+onal Ecosystem

©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

4

The Changing Role of Management

ü  In ecosystems, managers move beyond tradi+onal responsibili+es

ü  Managers must think about horizontal processes

ü  The old role of management relied on opera+on roles and boundaries

ü  Collabora+ve roles are becoming more important for success

©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

5

A Framework for Interorganiza+onal Rela+onships

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6

Resource Dependence

•  Organiza+ons minimize their dependence on other organiza+ons for the supply of resources

•  Organiza+ons succeed by striving for autonomy

•  Organiza+ons alter interdependent rela+onships through ownership, contracts, and joint ventures

©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

7

Resource Dependent Rela+onships

©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

8

Collabora+ve Networks

ü Emerging alterna+ve to resource dependency ü Companies join together to become more compe++ve and to share scarce resources

ü Alliances require managers who are good at building networks

ü Companies can share risk and coopera+on is a prerequisite for greater innova+on, problem solving, and performance

©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

9

Changing Characteris+cs of Interorganiza+onal Rela+onships

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10

Popula+on Ecology •  Organiza+onal diversity and adapta+on within a popula+on of

organiza+ons

•  Popula+on is a set of organiza+ons engaged in similar ac+vi+es •  The theory notes that large, established organiza+ons o%en

become dinosaurs

–  They have difficulty adap+ng –  The changing environment determines survival or failure

•  Heavy investments can limit organiza+onal adapta+on •  Model looks at organiza+onal form •  Organiza+onal niche can help aid in the survival of an

organiza+on ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

11

Elements in the Popula+on-Ecology Model of Organiza+ons

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12

Strategies for Survival

Organiza+ons struggle for existence (compe++on)

•  Generalist strategies – wide niche or domain, broad range of products or services to a broad market

•  Specialist strategies – narrow range of goods or services that serve a narrow market

©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

13

Ins+tu+onalism •  Ins+tu+onal perspec+ve:

– Manage survival – Balance expecta+ons of environment

•  Ins+tu+onal Environment – Norms and values of stakeholders – Adopt structures and processes to please outsiders

•  Legi+macy - an organiza+on’s ac+ons are desirable, proper, and appropriate

©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

14

Ins+tu+onal View and Organiza+onal Design

Technical Structure •  Day-to-day work •  Technology •  Opera+ng requirements

Governed by norms and ra+onality of

efficiency

Ins+tu+onal Structure •  Visible to the public

Governed by expecta+ons of the

public

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15

Three Mechanisms for Ins+tu+onal Adapta+on

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16

Design Essen+als

v There has been an evolu+on in inter- organiza+onal rela+onships

v  Four perspec+ves explain rela+onships among organiza+ons. Resource dependence is the most tradi+onal

v  Collabora+on is an emerging alterna+ve to resource dependence

©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

17

Design Essen+als

v The popula+on-ecology perspec+ve explains why organiza+onal diversity increases, and new organiza+ons fill niches

v The ins+tu+onal perspec+ve notes that interorganiza+onal rela+onships are shaped by legi+macy as well as products/services

v Each of the four perspec+ves is valid

©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 18