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Chapter 5

BUSI 3103 Chapter Notes - Chapter 5: Isomorphism, Gopro, Kodak

Course Code
BUSI 3103
Pal Shibu

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Chapter 5: Inter-Organizational Relationships
With the increasing levels of uncertainty in the world, organizations have resorted to working together which has
impacted the way business is conducted
Reduction in traditional boundaries through company collaboration and increasing information sharing
throughout the supply chain
Organizational Ecosystems
Inter-organizational relationships: the long-lasting transactions, flows and linkages that occur between two or
more organizations
Organizational ecosystem: a system formed by the interaction of a community of organizations and their
environment; can include companies from a variety of industries
The Changing Role of Management
There is a shift from the traditional organization (one that focuses on control) to one that is more horizontal and
focuses on collaboration and cooperation; includes linkages between companies and their suppliers as opposed
to bullying them and customers into favourable prices
Inter-Organizational Framework
Organization Type
Resource Dependence
Organizations try to reduce
dependence on the environment
in order to have more control over
the resources they need
Based on two factors: scarcity and
Resource strategies
o Alter relationships with
other organizations (joint
venture, interlocking
o Changing their external
environments (trade
association, political
Power Strategies
o Large organizations having
power over small suppliers
versus keeping a more
egalitarian relationship
with suppliers
Population Ecology
Focuses on adaptation and variation
among organizations
More theoretical focuses on how
organizations change over time
Population: a set of organizations
engaged in similar activities within
similar pattern of resource utilization
and outcomes
This theory argues that individual
organizational forms are relatively
stable (due to inertia). Thus, variation
in organizational form mainly occurs
through new entrants
o New entrants are better
suited to satisfy current
market needs and as such the
environment will choose
which organizations succeed
or fail
Collaborative Network
Where organizations develop
relationships in order to better
navigate their external
Institutionalism/Institutional Theory
Institutional perspective:
describes how organization thrive
and survive through congruence
with expectations from their
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