 Definition Network Organization. Description.
Nowadays, knowledge workers create, share and leverage information through collaborating with colleagues in various flexible, international, multi-disciplinary and cross-functional teams. Organizations are increasingly viewed as part of these inter-organizational relationships.
The current business climate is characterized by profound and frequent changes and increasing complexity due to globalization, sudden increases in information and communication capabilities, and other forces.
Rapid developments of ICT are enabling, supporting and even driving the sudden change from the industrial to the information age and network economy.
A Network Organization is a pattern of social relations over
a set of persons, positions, groups, or organizations. This type of "organization" is well adapted
to unstable conditions, when problems and requirements for action arise which
cannot be broken down and distributed among specialists' roles within a hierarchy.
Interactions run laterally as much as vertically. Communication
between people of different ranks tends to resemble lateral consultation rather
than vertical command and omniscience can no longer be imputed to the head
of the concern. Such "organizations" are using social mechanisms for coordination and control.
Compared to the vertically integrated company, a networked
company is characterized by greater Organizational Agility and adaptability. It has more
flexible relations with external third parties such as customers, suppliers,
outsourcing firms, and regulators.
100% networked organizations are still relatively rare. Especially for large organizations. But in many if not all business and public organizations we can see Hybrid Forms of Organizations being deployed with both mechanistic and organic elements.
Also called: Virtual Business / Organization or Network-centric Organization.
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Organizations and Inter Organizational Relationships
Organizations nowadays are often portrayed as part of inter-organizational relationships. Resource dependence theory, social network studies and several other perspectives take such a position.
A. How can we explain whether network forms of organizing could be seen as fitting with ideas from resource dependence? Why/why not.
B. At the same time how can we explain whether such a focus on inter-organizational relationships would fit with contingency theory approaches. Why/why not. |
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What is Network Governance? Cases
I am conducting a study on "network governance" and I would like to analyze some case studies. I will be very grateful if you can indicate me any company that adopts this model. Thank you very much. |
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Demands on Network Organisation
Several things must occur for a network organization to be successful:
- the firm must choose the right specialty
- the firm must choose collaborators that also are excellent at what they do and provide complementary strengths
- all parties must fully understand the strategic goals of the partnership
- there must be trust among the partners. |
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Network Organizations Special Interest Group
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Compare with: Chaordic Organization | Organization
Chart |
Hierarchical
Organization |
Matrix Organization
| Relational Capital
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