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Chapter 5

BUSI 3103 Chapter 5: Chapter 5

Course Code
BUSI 3103
Rumisa Shaukat

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Interorganizational Relationships: relatively enduring resource transactions, flows and linkages
that occur among two or more organizations
Organizational Ecosystem: system formed by the interaction of a community of organizations and
their environment
Changing Role of Management: Managers need to understand that they must learn to manage
horizontally to be effective
Relationships between organizations: assessed by degree of similarity and degree of
Interorganizational Framework: RSDT, CN, PECT, IPT
Resource Dependence Theory: argues that organizations do not want to become dependent on
other companies due to negative effects on performance
Resource Dependence Strategies: Alter or adapt to the interdependent relationships or power
over others in relationships
Collaborative Networks: helps share risks when entering new markets and creating new products.
Influenced by growing international competition
Population Ecology Theory: changing environment determine which organizations survive.
Individual organizations suffer and die out due to structural inertia and are replaced by new ones.
Population: Set of organizations engaged in similar activities with similar patterns of resource
utilization and outcomes
Organizational Form: is an organization's specific technology, structure, products, goals and
personnel which can be selected or rejected by the environment.
Niche: A domain of unique environmental resources and needs
Process of Ecological Change: Variation, Selection and Retention
Variation: Appearance of new, diverse forms in a population of organizations.
Selection: whether a new organizational form is suited to the environment and can survive
Retention: preservation and institutionalization of several organization forms.
Strategies for Survival: Generalist(Broad domain and product range), Specialist (Narrow Domain
and product range)
Institutional Perspective: describes how organizations survive and succeed through congruence
between and organization and the expectations from its environment.
Institutional Environment: composed of norms and values from stakeholders. Adopt changes to
please others which become rule-like.
Legitimacy: Perspective that an organization's actions are desirable, proper and appropriate within
the environment systems norms, values and beliefs.
Institutional View: organizations have two dimensions, technical (internal) and
institutional(external aspects)
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