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Chapter 5

Chapter 5; International Relationships.docx

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Department
Business
Course
BU398
Professor
Steve Risavy
Semester
Winter

Description
Tuesday, January 29, 2013 International Relationships Organizational Ecosystems  International relationships: relatively enduring resource transactions, flows, and linkages that occur among two or more organizations  Organizational ecosystems: a system formed by the interaction of a community of organizations and their environment, cuts across traditional industry lines Inter-organizational Framework Resource Dependence Resource Strategies  When organizations feel resource or supply constraints the maneuver to maintain their autonomy through a variety of strategies (refer to chapter 4 for strategies) Power Strategies  Large, independent companies have power over small suppliers Collaborative Networks  An emerging alternative to resource-dependence theory  Companies join together to become more competitive and share scarce resources Why Collaborate?  Sharing risk when entering new markets, reducing costs  Helps companies enter global markets  Prerequisite for problem solving, innovation, performance From Adversaries to Partners  Companies working together for equitable profits for both companies, all involved in partnership Tuesday, January 29, 2013 Population Ecology  Focus on organizational diversity and adaption within a population (group of organizations engaged in similar activities) of organizations  Innovation and change to meet changing demands occurs through the birth of new organizations more so than from existing ones  Heavy investments in plants, equipment, previous success, policies, viewpoints for decision making, and organizational culture keep organizations from being able to easily adapt to changes  When changes occur older organizations are likely to decline or fail due to lack of ability to change Organizational Form and Niche  An organizations specific technology, structure, products, goals and personnel, which can be selected or rejected by the environment  Each new organization tries to find a niche to support it, small at first and grows  Success is very much up to chance determined by the environment as much as the skills and strategies of the organization Process of Ecological Change  Assumes new organizations are always appearing in the population, changing 
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