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Chapter 5

Chapter Five.docx

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Department
Business
Course
BU398
Professor
Rosemary Mc Gowan
Semester
Spring

Description
OrganizationalTheoryandDesignChapterFiveInterorganizationalRelationshipORGANIZATIONAL ECOSYSTEMSinterorganizational relationships relatively enduring resource transactions flows and linkages that occur among two or more organizationsthe presumption world is composed of distinct businesses that thrive autonomy and compete for supremacy A company may be forced into interorganizational relationship depending on its needs and the instability and complexity if of the environmentorganizational ecosystem system formed by the interaction of a community of organizations and their environmentex Microsoft in four major industries consumer electronics information communications and personal computers Is Competition Dead Traditional competition a distinct company competing for survival and supremacy with other standalone businesses no longer exists because each organization both supports and depends on the other for success and perhaps survival The Changing Role of Managementwithin business ecosystem and managers learn to move beyond traditional responsibilities of corporate strategy and designing hierarchy structures and control systems opportunities for new and evolving relationships horizontal relationship include linkages with suppliers and customers who become part of the team Interorganizational Framework Pg 176 the models and perspectives for understanding interorganizational relationships ultimately help managers change their role from topdown management to horizontal management across organizationscharacterized by whether the organizations are dissimilar or similar and whether relationships are competitive or cooperativeresourcedependence theory Dissimilar Competitive describes the rational ways organizations deal with each other to reduce dependence on the environmentcollaborative network Dissimilar Cooperative organizations allow to be dependent on organizations to increase value and productivity for bothpopulation ecology Similar Competitive examines how new organizations fill niches left open by established organizations and how a rich variety of new organizational forms benefits societyinstitutionalism Similar Cooperative explains why and how organizations legitimate themselves in the larger environment and design structures by borrowing ideas from each other RESOURCE DEPENDENCErepresents the traditional view of relationships among organizationsresourcedependence theory argues that organizations try to minimize their dependence on
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