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Chapter Five

This article explores the changing characteristics of interorganizational relationships, from a traditional adversarial orientation to a new partnership approach. It discusses the importance of trust, value addition, equity, and long-term commitment in these relationships, as well as the role of electronic linkages, close coordination, and shared resources. The article also examines the population ecology model of organizations, highlighting the mechanisms of mimetic, coercive, and normative adaptation. Overall, it provides insights into the dynamics of interorganizational relationships and their impact on organizational success.

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Chapter Five

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  1. Chapter Five Interorganizational Relationships

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

  3. 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

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

  5. 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).

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