1
Network Organizations and the Environmental Process
Discussion Post: Network Organizations and the Environmental Process
Anthony Soricelli
DBA: Marketing
Liberty University
2
Network Organizations and the Environmental Process
Introduction
Most organizations need to focus their efforts on conceptualizing a long-term vision and
strategy for their organizational goals which typically they excel at this but tend to fall short
when having to execute it. When discussing a network organization, most analyst see it as an
organization that can quickly and easily adapt to changes in its surrounding environment.
However, changes to the organization's structure can be disadvantageous in the long run because
search is mediated by understanding the organization's structure. Tunisini & Marchiori (2020)
states, a cohesive network can limit the autonomy of the actors, thereby limiting the social ties
necessary for cooperation. In summary, network structural features such as density, cohesiveness
and the presence or absence of structural holes can be linked to poor network performance
(Tunisini & Marchiori, 2020). Corporate, social, and economic activities are transformed due to
the notions of networks and networking, which are fundamental concepts.
Network organizations are based on the belief that organizations, no matter how large or
small, do not exist in a socially unstructured environment that the concept of organizational
networks is based on. To be more specific, the self-regarding network of an organization
comprises the main organization. Organizations have to deal with ego networks and the alters,
trying to a create a compatible workplace. Following this understanding, forms of networks and
their influence on organizations have been researched further on how this can be developed
further. This discuss aims to review the kinds of networks and their influence on the external
environment processes. It is important to remember both conceptual frameworks of the social
3
Network Organizations and the Environmental Process
network in which organizations are integrated, and analytical levels of the networks are crucial in
this context.
Networks
Organizational networks may be examined from various perspectives depending on the
analytical level used. Ego network for example, is an analytical level of organizational networks.
Even if it is the most basic analytical level, it may be highly crucial in determining contacts due
to their knowledge of one another, and the amount of variety among those acquaintances. The
egocentric analysis of dynamic systems identifies the temporal patterns around a certain central
network. Scott & Davis (2016) states, in various application fields such as business intelligence
and social science, these studies may be beneficial because they provide insights into how the
core actor interacts with the outside environment. Specifically, it is concerned with the number
of direct interactions the organization has with other organizations at the organizational level.
Scott & Davis (2016), states, at this analytical level, it is sought to find where players fit
into the network at the organizational level; it determines where actors fit into the network.
Additionally, networks may be assessed using three unique properties corresponding to these
analytical levels. The factors to consider are distance, which specifies the amount of time
separating actors. Centrality, which characterizes an actor's relevance within the network. Lastly,
clustering and structural gaps, which determine the degree of cohesiveness within a network.
Now for overall network, there are so many people in one network that it is a higher level of
analysis than the ego network. Networks, in general, determine the density of networks and the
centralization or decentralization of the network. Network organizations are basically a structure
in where all individuals involved are connected through relationships.
4
Network Organizations and the Environmental Process
Types of Network Organizations
Network organizations are systems that monitor and report on the commitment of
corporate organizations to long-term initiatives such as environmental protection. This is why
environmental protection policies and the implementation of environmental protection measures
go hand and hand. Technical societies assist in facilitating the exchange of information and
perspectives. Organizational networks provide a feeling of solidarity to achieve shared goals
between organizations and their members. Jiang et al., (2020) states, as a result, they contribute
to the motivation of others and the improvement of the working team and the company.
Following is a list of the several forms of network organization:
Ahmady et al., (2016) states, a stable network organization is one in which a major
business plays a significant role in establishing market-based linkages for the partners inside the
network, even while the partners continue to service clients from outside the network
organization. This condition allows smaller organizations to stay alive and remain competitive in
the marketplace. For example, a stable network organization would be Nike. Nike allocates its
resources to research and marketing while allowing other companies to continue manufacturing
on their timetable. Nike grants permission to these companies to manufacture for other rivals.
Compared to dynamic and internal networks, such networks are regarded as long-lasting and
very stable.
In a dynamic network, temporary alliances are formed between independent businesses
working within the value chain and prospective partners to achieve specific objectives. This kind
5
Network Organizations and the Environmental Process
of network structure mainly seen in the fashion. Fashion deals with short product cycles and
requires rapid response times. In this instance, a well-known fashion firm calls together a group
of experts to design a new season's clothing line to meet customer and fashion needs. This
network reveals itself in the fashion sector of business, exhibiting items with a limited life cycle.
For example, a fashion company like Versace will get together all its professionals to produce a
clothing line for the next season. Typically, the experts brought in won’t be used to make the
clothes for the following season. This network also includes business like Hollywood films and
high-end tech companies as well.
There are also internal networks. This sort of network organization emerges when firms
buy and sell products and services within themselves at prices established by the open market.
Market transactions should be able to take place outside of organizations' borders while yet
remaining inside organizations' constraints. Wu et al., (2021) states, the close communication,
stability, and trust among members of the internal network positively affect the innovation and
growth of incubatees by promoting knowledge transfer and resource flow. Oragnizations
focusing on internal networks need to build a team that can communicate and work well with
each other for it to be successful. The internal network refers to the collaborations among
incubatees, which plays a nurturing function and serves as the entire incubator network’s core.
The internal cooperation in the incubator network is particularly important for incubatees’
survival (Wu wt al., 2021).
Impact of Network Organizations
Starting a new business is not as easy for individuals nowadays as it was back then. To
start a new business, you will need to invest in real estate, make business plans, hire multiple
6
Network Organizations and the Environmental Process
employees, purchase equipment, and make sure your business abides by certain strict rules and
regulations. Entrepreneurial characteristics and dispositions were the driving force behind the
establishment of organizations. Sobolewska (2020) talks about the market by stating:
The modern market requires organizations to be flexible. This flexibility is understood as
the ability to quickly adapt to new market requirements in various areas of operation,
such as the company’s systems (including IT), structure, and even organizational culture.
These challenges are usually encountered by network organizations, whose operation is
often conditioned by the existence of a specific project or order. (p.107)
When it comes to starting a business, the playing field is not even. Individuals' ability to take
advantage of structural possibilities varies widely as well. Resources, networks, and expertise all
play a role in forming new organizations along with the capital certain people have backing their
investment. The diversity of a network is vital since it enhances the odds of obtaining relevant
information.
Regarding the environmental process, participation in networks may have a wide range of
impacts on organizations, including technological advancements and ecological processes.
Networked organizations have to focus on using resources wisely especially ones that are
considered scare. These resources may include financial assistance in the form of access to
capital required to continue the operations of existing organizations and create new ones.
Bridging organizations may facilitate managerial interactions by reducing the transaction costs of
cooperation across stakeholders leading to centralization in network organizations. Bridging
organizations and a network organization may play a crucial role in the environmental process.
7
Network Organizations and the Environmental Process
When technical developments occur, organizations working inside networks may be
protected from investing money in technology. This is especially true for smaller organizations
with limited resources and weak financial budgets trying to compete in an ever-changing market.
When this company is part of a bigger network, it may rely on the larger company's technology
to continue providing products and services. This relationship is very important and could help
booster smaller organizations to stay alive in certain markets that are mainly controlled by
extremely profitable organizations that have monopolized their sector.
The ecological process that needs knowledge and information resources benefits firms or
organizations inside a network. In this situation, networks function as vital channels for
disseminating old and new knowledge. This implies that organizations in a network may have
access to information and experts that would otherwise be unavailable if they were not part of the
network. This helps them not being absolutely decimated by bigger competitors. Information that
is easy to find helps businesses adapt to changes in the environment, such as customer desire
attraction to newer and innovated products or services. Ecologists talk about two ways for groups
to stay alive. The expert method has a limited ability to adapt to changes in the environment and
the capacity to reproduce and flourish in various environments requires the generalist approach.
Organizations can adapt to unfavorable environmental changes. These two factors work hand
and hand, along with aiding in creating favorable circumstances for organizations to thrive.
Now on the flipside, organizations can suffer due to being part of a network. Despite their
abundance of possibilities, the networks can also serve to restrict network members by
attempting to prevent them from entering other networks that could be beneficial. This could
impact the network's overall performance and the industry's overall contribution. An
8
Network Organizations and the Environmental Process
organization’s sensitive information may be exposed to its competitors due to network
membership, making it impossible to maintain a long-term competitive advantage. Network
membership may also force defined organizations to abide by values that fall short of their
standards. These values would have a long-term impact on the organizations' performance
because they would alter their organizational cultures. This is a decision where organizations
need to weight the pros and cons of having a network and see if it would really benefit their
organization in the long run or not.
Biblical and Personal Perspectives
The dynamic nature of organizations necessitates ongoing evolution to maintain a
competitive edge. An organization's operations must be restructured to adapt to a changing
environment and to keep with ongoing technological advances in business. Organizations due
this as part of a corporate overhaul, including a shift in corporate structure or how operations are
done. When making a biblical connection, I think of the story of King Solomon's construction of
God's temple. I believe this a great illustration of network organization in the Bible. People were
invested in this project, all working for the same end goal. In other words, if individuals and
organizations work together, they can achieve their objectives. In the bible it states, there are
many talents, but the same Spirit distributes them all. There are ways to serve, but only one Lord.
The same God is at work in everyone, regardless of the kind of labor. The Spirit's manifestation
is now provided to everyone for the benefit of everyone (English Standard Version Bible, 2001,
1 Corinthians 12:4–7). Mutual reliance, togetherness, and what each of us contributes are key
objectives for success.
9
Network Organizations and the Environmental Process
Organizational members impact the organization and the environment. Social norms
influence workplace conduct. Procedures and regulations that must be followed are a means of
disseminating social norms among members and making sure things are done by the book. Social
norms can be natural, rational, or open systems in any organization. Consumers, shareholders,
business associates, and employees should be the primary beneficiaries of an organization's
efforts to generate resources. When organizations work together in networks, they can fulfill
their objectives of profitability and offering high-quality products and services. Emphasis on all
parties involved in the organization communicating with each other is vital for an organization to
achieve success and what they set out to do as an organization in society.
Conclusion
Depending on the organization, it may benefit from these networks while others could not
use them effectively. Networks mainly have control on the impact of the effectiveness and value
of a certain organization. The rise of industrialization has had many positives but ultimately it
negatively impacts population health. This has caused generational trend to focus on social and
environmental preservation throughout all aspects of world especially in organizations.
Organizations should focus efforts on environmental rules and regulations to continue
this fight against pollution and being a sustainable organization. To do this, environmental
protection legislation must be enforced throughout the organization and making sure employees
are following by these rules to continue to be sustainable. Organizations have the responsibility
of promoting sustainability and preservation of human health. In my opinion, I believe
organizations of a small size would benefit from networked organizations the most, but like
always they need to watch for it negatively affecting their performance.
10
Network Organizations and the Environmental Process
References
Ahmady, G. A., Mehrpour, M., & Nikooravesh, A. (2016). Organizational Structure.Procedia -
Social and Behavioral Sciences,230, 455-462.Dhttps://doi.org/10.1016/j.sbspro.2016.09.057
English Standard Version Bible. (2001). ESV Online. https://esv.literalword.com/
Jiang, F., Zhao, X., & Bai, Q. (2020). Simulation and stability analysis of conflict events
between employees and organization based on the social network.Concurrency and
Computation: Practice and Experience,32(6), e5097.Dhttps://doi.org/10.1002/cpe.5097
Scott, R. W, & Davis G. F. (2016). Organizations and Organizing: Rational, Natural, and Open
Systems Perspectives (1st ed.). New York, NY: Taylor and Francis Books. ISBN:
9780131958937.
Sobolewska, O. (2020). Knowledge-oriented business process management as a catalyst to the
existence of network organizations.Journal of Entrepreneurship, Management and
Innovation,16(1), 107-132.Dhttps://doi.org/10.7341/20201614
Tunisini, A., & Marchiori, M. (2020). Why do network organizations fail? The Journal of
Business & Industrial Marketing,35(6), 1011-1021.Dhttps://doi.org/10.1108/JBIM-01-2019-
0056
11
Network Organizations and the Environmental Process
Wu, W., Wang, H., & Wu, Y. J. (2021). Internal and external networks, and incubatees’
performance in dynamic environments: entrepreneurial learning’s mediating effect.The Journal
of Technology Transfer,46(6), 1707-1733.Dhttps://doi.org/10.1007/s10961-020-09790-w
