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RANO FULL SUMMARY RELATIONS AND NETWORKS OF ORGANIZATIONS
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RELATIONS AND NETWORKS OF ORGANIZATIONSIntroduction
Main aim Recognizing, describing, analyzing, explaining and assessing relations between
organizations and of organizational networks.
What is social capital and why should you care about it? Baker, 2000
The concepts relations and networks & social capital
- Inter-organizational networks are “…the relatively enduring transactions, flows, and linkages
that occur among and between an organization and one or more organizations in its
environment” (oliver 1990: 241)
- Relations and network of organization is about the exchange and flow of resources between
organizations.
- For an individual organization, relations and networks mean access to and dependency on
resources (e.g. information, ideas, influence, trust).
- The resources available through relations and networks can be labelled as ‘social capital”
The myth of individualism and the relational basis of success
- Social capital is not a feature of an individual organization (attribute variable) but a feature
of a relationship (relational variable)
- “Social capital”: resources available in and through personal and business networks
- “Capital”: it is productive, it creates value
- Examples: information, ideas, business opportunities, financial resources, power, influence,
emotional support, goodwill, trust, cooperation.
- Relational variables have an equal/higher explanatory power than attribute variables.
- ‘The fiction is that society consists of a set of independent individuals, each of whom acts to
achieve goals that are independently arrived at, and at the functioning of the social system
consists of the combination of these actions of independent individuals” (James Coleman)
,Success and social capital/networks: Effects on different levels:
- Individual success
- Success of organizations
- Quality of life
1.Individual success and performance:
- Talent Nature of nurture? Relations important for developing talents
- Intelligence Genetically determined but also developed and strengthened by relations
(home situation, quality of education)
- Education Writing and reading skills are a result of social interaction
- Dedication Supportive environments
- Chance? The importance of ‘Spider web networks’
2. Social capital in the economy
- Finding a job Importance of informal relations
- Payment and career development People who are strongly embedded, higher salaries,
faster career development. “Structural holes” (Burt)
- Influence importance of expertise and network position in excising influence and power
- Acquiring financial capital Informal financial capital market.
- Learning in organizations Informal relations and learning.
- Marketing Verbal advertising, importance of social networks for diffusion of new
products.
- Strategic alliances importance of social capital for use and results of strategic alliances
(reputation effect)
- Mergers and takeovers Social capital as defence mechanism in case of hostile takeovers
3. Social capital and quality of life
- Well-being Psychological research, sense-making work and social relations are important
predictors of well-being
- Health Networkers are more healthy
- Life expectancy networkers live longer
Collaboration is out there
Example 1: Strong Top sectors in NL
Inter-organizational collaboration between
Wageningen University and technical producers
of horticultural produccts:
- Pre-market testing new products
- Testing new production techniques
, Example 2:
Collaboration between Dutch Tax Office and Foundation
Reading & Writing
Aim Exchange knowledge on how to recognize and deal
with people with low reading & writing skills
2 ORGANIZATION AND ENVIRONMENT: THE NETWORK PERSPECTIVE
Closed vs. open system
- Closed system Clear boundary and does not interact with the environment. We are
predominantly interested in the internal processes.
- Open system Interacts with the environment of the organization so the boundary is
crossed multiple times trough input and output. Environment and organization influence
each other.
Environment = input & output
Organization acts with its environment through inputs that come from the environment, which are
transformed in outputs. Also on the output side there is interaction with the environments because
those are for example sold to the environment.
, Environment = compartments
PESTLE technique
Pestle is used to gain an appreciation of the
organization’s external environment within which it
operates
Here environmental refers to the natural
environment.
Environment = Task environment
Task environment is a part of the larger environment. It is that part of which there is actual
interaction. Closer to a network approach because the different parts that enable to hinder to
perform task already become a little bit more concrete. You can already see certain supplier and
competitor names.
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