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Organizational Ecosystems:
Interorganizational relationships are the relatively enduring resource transactions, flows, and
linkages that occur among two or more organizations.
Organizations are today evolving into business ecosystem. It is a system formed by the
interaction of a community of organizations and their environment.
Is competition Dead?
Mutual dependencies and partnerships have become a fact of life in business ecosystems.
Companies today may use their strength to win conflicts and negotiations, but in the end
cooperation carries the day.
The Changing Role of Management
In business ecosystems managers learn to move beyond traditional responsibilities of
corporate strategy and designing hierarchical structures and control systems. Managers think
about horizontal processes rather than vertical structures.
Interorganizational Framework
Relationships among organizations can be characterized by whether the organizations are
dissimilar or similar and whether relationships are competitive or cooperative.
Resource Dependence:
It represents the traditional view of relationships among organizations. Resource dependence
theory argues that 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. Organizations succeed by encouraging independence and autonomy.
The amount of dependence on a resource id based on two factors:
Importance of the resource
How monopoly power those who control a resource have over its allocation and use
Organizations aware of resource-dependence tend to develop strategies to reduce their
dependence on the environment and learn how to use their power differences.
Resource Strategies: Purchase ownership in suppliers, developing long term contract or joint
ventures to lock in the necessary resources, or building relationships in other ways.
Power Strategies: as large companies can have power over small suppliers
Collaborative Networks :
The collaborative network perspective is a promising option to resource-dependence theory.
Companies join together to become more competitive and to share scare resources.
Why Collaboration?
Sharing risks when entering new markets, innovation, Problem solving, performance.
Interorganizational relations offer safety that encourages long term investment and risk
taking.
From Adversaries to Partners:
Traditional Orientation:
Adversarial
New Orientation:
Partnership
Low dependence
Suspicion, competition, arms length
High dependence
Trust, addition of value to both sides, high
commitment
Short-term contracts
Minimal involvement and up-front
investment, separate resources
Long-term contracts
Involvement in partners product design and
production, shared resources
Population Ecology:
A population is a set of organizations engaged in similar activities with similar patterns of
resource utilization and outcome. Today, organizations meet the new needs of society more
than established organizations that are slow to change. They appear to fill the niches left open
by established companies.
Organizational form and niche:
The population ecology is concerned with organizational forms.
Organizational form is an organizations specific technology, structure, products,
goals, and personnel, which can be selected or rejected by the environment.
Niche is domain of unique environmental resources and needs.
Process of ecological change:
The process of change is the population is defined by three principles that occur in stage:
1) Variation: The appearance of new, diverse form in a population of organizations
2) Selection: Whether a new organizational form is suited to the environment and can
survive
3) Retention: Is the preservation and institutionalization of selected organizational forms.
Strategies for survivals:
Organizations and populations of organizations are engaged in a competitive struggle over
resources, and each organizational form is fighting to survive.
Generalist and specialist strategies distinguish organizational forms in the struggle for
survival:
Generalist: companies with wide niche and domain, offer broad range of products or
services or serve a broad market.