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Framework of Interorganizational Relationships in Modern Business Environment

Explore the characteristics of interorganizational relationships, from adversarial to partnership-oriented methods of collaboration, examining the shift towards trust, equity, and long-term commitment. Learn about the population ecology model, institutional adaptation mechanisms, and the reasons organizations become similar. Gain insights into mimetic, coercive, and normative influences that shape business interactions.

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Framework of Interorganizational Relationships in Modern Business Environment

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  1. Chapter Five Interorganizational Relationships ©2000 South-Western College Publishing Cincinnati, Ohio Daft, Organization Theory and Design 7/e 5 -

  2. Organization Type Dissimilar Similar Resource Dependence Population Ecology Competitive Organization Relationship Collaborative Network Institutionalism Cooperative A Framework of Interorganizational Relationships* ©2000 South-Western College Publishing Cincinnati, Ohio Daft, Organization Theory and Design 7/e *Thanks to Anand Narasimhan for suggesting this framework.

  3. Changing Characteristics of Interorganizational Relationships Traditional Orientation: Adversarial New Orientation: Partnership Trust, addition of value to both sides, high commitment Equity, fair dealing, all profit Electronic linkages to share key information, problem feedback and discussion Mechanisms for close coordination, people on-site Involvement in partner’s product design and production Long-term contracts Business assistance beyond the contract Suspicion, competition, arm’s length Price, efficiency, own profits Limited information and feedback Legal resolution of conflict Minimal involvement and up-front investment Short-term contracts Contract limiting the relationship ©2000 South-Western College Publishing Cincinnati, Ohio Daft, Organization Theory and Design 7/e

  4. Variation Selection Retention Large number of variations appear in the population of organizations Some organizations find a niche and survive A few organizations grow large and become institutionalized in the environment Elements in the Population Ecology Model of Organizations ©2000 South-Western College Publishing Cincinnati, Ohio Daft, Organization Theory and Design 7/e

  5. Three Mechanisms for Institutional Adaptation Mimetic Coercive Normative Reasons to become similar: Uncertainty Dependence Duty, obligation Events: Innovation visibility Political law, rules, sanctions Professionalism—certification, accreditation Social basis: Culturally supported Legal Moral Example: Reengineering, benchmarking Pollution controls, school regulations Accounting standards, consultant training ©2000 South-Western College Publishing Cincinnati, Ohio Daft, Organization Theory and Design 7/e Source: Adapted from W. Richard Scott, Institutions and Organizations (Thousand Oaks, Calif.: Sage, 1995).

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