NETWORK ORGANIZATIONS ORHAN BALIKÇI Introduction

Transcript:NETWORK ORGANIZATIONS ORHAN BALIKÇI Introduction:
NETWORK ORGANIZATIONS ORHAN BALIKÇI Introduction The Notion of Network Define of Network Organizations Functions of Network Forms Of Organizations Disadvantages of Network Organizations Kinds of Network Organizations Virtual Organizations versus Network Organizations Examples of Network Organizations References What’s Network? A network is a pattern of social relations over a set of persons, positions, groups, or organizations. A strategic view of networks is that «long term purposeful arrangements among distinct but related for-profit organizations that allow those firms in them to gain or sustain competitive advantage.» The notion of a network implies nodes and links. The nodes can be people, teams or even organizations - networks operate at many levels. Define of Network Organization Network organizations are defined by elements of structure, process, and purpose. Structurally, a network organization combines co-specialized, possibly intangible, assets under shared control. We can characterize network structures as long-term agreements among companies, which enable them to obtain and maintain competitive advantages in relation to other companies not belonging to the network. In network structures a managerial center is created for the purpose of a coordination of all cooperating companies on the basis of the contract. The responsibility is divided among all parts of the network. Functions of Network Forms Of Organizations Network forms of organization foster learning. If an actor’s partner in a network form of organization possesses considerable legitimacy or status, then the actor may derive legitimacy or status through the affiliation. The network form of organization is the adaptability of this form to unanticipated environmental changes. These organizations can alleviate sources of external constraint or uncertainty by strengthening their relationship with the particular sources of dependence. Disadvantages of Network Organizations The coordination problems arising from having different companies perform different parts of the work process would be enormous. There has to be trust between the different groups so that they can share their ideas, something necessary of successful new product development. In general, the more complex the value creation activities necessary to produce, market goods and services, the more problems there are associated with using network structure. Kinds of Network Organizations The general network organization framework permits several gradations in type. Network organizations are distinguished between three kinds: internal, stable, and dynamic. Internal networks Stable networks Dynamic networks Virtual Organizations versus Network Organizations Network Organizations All of virtual organizations are network organizations. But All network organizations are not virtual. Network organizations can be long-term