05

Interorganizatio
nal
Husnul Iradati
Relationships
Ichramsyah Fajar
Rena Kartika
Tri Utomo Aji

Organizational Ecosystems
Interorganizational Relationships
Resource transactions, flows, and linkages that occur
among two organizations

Organizational Ecosystem
R system formed by the interaction of a community of
organizations and their environment

Is Competition Dead?
Changing
technology
and
new
regulations present organizations
with international competition
Organizations
are
involved
in
complex networks; the number of
corporate alliances are increasing
Traditional
exists

competition

no

longer

Organizational
Ecosystem

The Changing Role of

Competition
In ecosystems, managers move beyond
traditional responsibilities
Managers must think about horizontal
processes
The old role of management relied on
operation roles and boundaries
Collaborative roles are becoming
more important for success

A Framework for
Interorganizational
Relationships

Organization
Relationship

Organization Type
Dissimilar

Similar

Competitive

Resource
Dependence

Population
Ecology

Cooperative

Collaborative
Network

Institutionalis
m

Resource Dependence
Organization type - dissimilar,
Organization relationship - competitive
Dependence
Try to influence the environment
Minimize their dependence on other
organization for the supply of important
resources

Resource Dependence (contd)

When organization feel resource or supply

constraints, the resources dependence
perspective say they maneuver to
maintain their autonomy through variety
of strategies :
1. Adapt
2. Alter the interdependent relationship

Resource Dependent
Relationships

Supply Chain Relationship

Refers to managing the sequence of suppliers and

purchasers
Large independent companies can have power over
small suppliers

Collaborative Networks
Emerging alternative to resource
dependency
Companies join together to become more
competitive and to share scarce resources
Alliances require managers who are good
at building networks
Why?
1. Share risk
2. Reducing cost
3. Enhancing companys performance

Changing Characteristics of
Interorganizational
Relationships

Population Ecology

Organizational diversity and adaptation within a

population of organizations
Population is a set of organizations engaged in
similar activities
The theory notes that large, established
organizations often become dinosaurs
- They have difficulty adapting
- The changing environment determines survival or failure

Heavy investments can limit organizational

adaptation
Model looks at organizational form
Organizational niche can help aid in the
survival of an organization

Elements in the
Population-Ecology Model
of Organizations
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


STRATEGIES FOR
SURVIVAL struggle for existence
Organizations
(competition)

Generalist
strategies

Specialist
strategies

wide niche or domain,

broad range of products
or services to a broad
market

narrow range of goods or

services that serve a
narrow market

Institutionalism
Institutional perspective:
- Manage survival
- Balance expectations of environment

Institutional Environment
- Norms and values of stakeholders
- Adopt structures and processes to please outsiders

Legitimacy - an organizations actions are

desirable, proper, and appropriate

Institutional View and Organizational

Design
Technical
Structure
Day-to-day work
Technology
Operating
requirements
Governed by norms
and rationality of
efficiency

Institutional
Structure
Visible to the public
Governed by
expectations of the
public

Three Mechanisms for

Institutional Adaptation

Design Essentials
1. There has been an evolution in Interorganizational
relationships
2. Organizations operate within an ecosystem
3. Four perspectives have been developed to explain
relationships among organizations

Design Essentials (contd)

4. Collaboration is an emerging
resource dependence

alternative

to

5. New organizations fill

established companies

left

by

niches

open

6. The
institutional
perspective
notes
that
Interorganizational relationships are shaped by
legitimacy as well as products/services

Thanks!
Any
question?