Interorganizational Relationships Chapter Five Interorganizational Relationships Thomson Learning © 2004

A Framework of Interorganizational Relationships* Resource Dependence Collaborative Network Institutionalism Population Ecology Organization Type Organization Relationship Dissimilar Similar Cooperative Competitive Thomson Learning © 2004 *Thanks to Anand Narasimhan for suggesting this framework.

Changing Characteristics of Interorganizational Relationships Traditional Orientation: Adversarial New Orientation: Partnership Trust, addition of value to both sides, high commitment Equity, fair dealing, both 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, shared resources 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, separate resources Short-term contracts Contract limiting the relationship Thomson Learning © 2004

Elements in the Population Ecology Model of Organizations Variation Large number of variations appear in the population of organizations Selection Some organizations find a niche and survive Retention A few organizations grow large and become institutionalized in the environment Thomson Learning © 2004

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 Source: Adapted from W. Richard Scott, Institutions and Organizations (Thousand Oaks, Calif.: Sage, 1995). Thomson Learning © 2004