A SYSTEM FORMED BY INTERACTION OF A COMMUNITY OF ORGANIZATIONS AND

THEIR ENVIRONMENT

BUSINESSES, GOVERNMENTS, AND NONPROFIT ORGANIZATIONS JOIN TOGETHER ACROSS SECTORS AND

INDUSTRIES TO TACKLE HUG, COMPELING PROBLEMS OF MUTUAL

INTEREST, ETC

VERTICAL AUTHORITY AND ACCOUNTABLE FOR BUSINESS

RESULT PRIMARILY THROUGH DIRECT

CONTROL OVER PEOPLE AND RESOURCES

DONT HAVE DIRECT AUTHORITY OVER HORIZONTAL COLLEAGUES

HIGHLY FLEXIBLE AND PROACTIVE

FRAMEWORK INTERORGANIZATIONAL RELATIONSHIP

ORGANIZATIONS TRY TO MINIMIZE THEIR DEPENDENCE ON OTHER

ORGANIZATIONS FOR THE SUPPLY OF IMPORTANT RESOURCES AND TRY TO INFLUENCE THE ENVIRONMENT TO

MAKE RESOURCES AVAILABLE

SUPPLY CHAIN MANAGEMENT: MANAGING THE SEQUENCE OF SUPPLIERS AND PURCHASERS,

COVERING ALL STAGES OF PROCESSING FROM OBTAINING RAW MATERIALS TO DISTRIBUTING FINISHED GOODS TO

CUSTOMERS

INDEPENDENT COMPANIES HAVE POWER OVER SMALL SUPPLIER

ALTERNATIVE RESOURCE-DEPENDENCE THEORY.

COMPANIES JOIN TOGETHER TO BECOME MORE COMPETITIVE AND TO

SHARE SCARCE RESOURCES

Traditional Orientation: Adversarial

New Orientation: Partnership

Suspicion, competition, arm’s length

Trust, addition of value to both sides, high commitment

Detailed performance measures, closely monitored

Loose performance measures; problems discussed

Price, efficiency, own profits Equity, fair dealing, both profit

Limited information and feedback Electronic linkages to share key information, problem feedback and discussion

Legal resolution of conflict Mechanism for close coordination; people on site

Minimal involvement and up-front investment, separate resources

Involvement in partner’s product design and production, shared resources

Short-term contracts Long-term contracts

Contract Limiting the relationship Business Assistance beyond the contract

- ORGANIZATIONAL DIVERSITY-ADAPTATION WITHIN POPOLATION OF

ORGANIZATION-COMPETE SIMILAR RESOURCE OR

SIMILAR CUSTOMERS

ORGANIZATIONAL FORM: ORGANIZATION’S SPECIFIC TECHNOLOGY, STRUCTURE, PRODUCTS, GOALS AND PERSONNEL

WHICH CAN BE SELECTED OR REJECTED BY THE ENVIRONMENT

VARIATION: THE APPEARANCE OF NEW, DIVERSE FORMS IN APOPULATION OF

ORGANIZATIONSSELECTION: A NEW ORGANIZATIONAL

FORM IS SUITED TO THE ENVIRONMENT AND CAN SURVIVE

RETENTION: PRESERVATION AND INSTITUTIONALIZATION OF SELECTED

ORGANIZATION

STRUGGLE FOR EXISTENCE

ORGANIZATIONS AND POPULATIONS OF ORGANIZATIONS ARE ENGAGED IN A COMPETITIVE STRUGGLE OVER RESOURCES TO

SURVIVE

ORGANIZATIONS SURVIVE AND SUCEED THROUGH CONGRUENCE BETWEEN AN

ORGANIZATIONS AND THE EXPECTATION FROM ITS ENVIRONMENT

THE INSTITUTIONAL VIEW ALSO SEES ORGANIZATIONS HAVING TWO ESSENTIAL

DIMENSIONS-TECHNICAL AND INSTITUTIONAL

Mimetic Coercive Normative

Reason to become similar:

Uncertainty Dependence Duty, Obligation

Events: Innovation visibility

Political law, rules, sanctions

Professionalism-certificate, accreditation

Social basis: Culturally supported

Legal Moral

Example: Reeingeneering, benchmarking

Pollution controls, school regulation

Accounting standards, consultant training