BUS 304 Chapter 5: Ch.5 - Interorganizational Relationships
Document Summary
Interorganizational relationships are the relatively enduring resource transactions flow, and linkages that occur among two or more organizations. A company may be forced into interorganizational relationships depending on its needs and the instability and complexity of the environment. Organizational ecosystems are a system formed by the interaction of a community of organizational and their environment. In an organizational ecosystem, conflict and cooperation frequently exist at the same time. Mutual dependencies and partnerships have become a fact of life in business ecosystems. If a top manager only looks down to enforce order and uniformity, the company is missing opportunities for new and evolving external relationships. In the new world, managers think about horizontal processes rather than vertical structures. Moreover, horizontal relationships now include linkages with suppliers and customers, who become part of the team. Relationships among organizations can be characterized by whether the organizations are dissimilar or similar and whether relationships are competitive or cooperative.
