Summary
Summary - Relations and networks of organizations (441057-B-6)
- Course
- Institution
Short summary of all the important terms from RANO.
[Show more]
Seller
Follow
emmahamm
Reviews received
Content preview
LECTURES RANOL1: INTRODUCTION
● Social capital:
○ social → resources available in and through personal and business
networks
capital → productive, creates value
○ feature of a relationship (relational variable), not of an entity (attribute variable).
Relational variables; equal/higher explanatory power than attribute variables
○ RESOURCES available through relationships and networks, i.e., relational view of
organizations
SOCIAL CAPITAL IN INDIVIDUALS LIFE SOCIAL CAPITAL IN ECONOMY
Well-being Payment and career development:
- sensemaking work and social relations - people who are strongly embedded tend
are important predictors of well-being to earn higher salaries and experience
Health faster career development (“structural
- networkers are often healthier holes”, Ronald Burt)
Life expectancy Raising financial capital:
- etworkers live longer - 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 relationships between
organizations (learning and reputation
effects)
● Society: set of independent individuals, each of whom acts to achieve goals that are
independently arrived at. social system; combination of theses actions of independent
individuals
● Interorganizational networks (IOR): relatively enduring transactions, flows, and linkages
that occur among and between an organization and one or more organizations in its
environment. exchange and flow of resources between organizations
○ Absence of ‘true’ hierarchy (no boss)
1
, ● Power of six degrees: two people on Earth can be connected through a chain of
acquaintances with no more than six intermediate connections. We are all linked through
social connections. One single link: enormous effect (six degrees of Kevin Bacon)
L2: DEFINITIONS, TYPES AND CHARACTERISTICS OF RELATIONSHIPS BETWEEN
ORGANIZATIONS AND NETWORKS OF ORGANIZATIONS
● Open system: needs input from the environment.
○ L6: system that interacts with the environment.
There are other actors that send you information and knowledge.
→ From the perspective of the ego this is indegree (incoming flow).
→ From perspective of the alter this is outdegree (authors are sending
something)
○ Pestle: used to gain an appreciation of the organization’s external environment within
which it operates
● Closed system: isolated, doesn’t need to collaborate, has all the resources itself
● Input; raw materials, human resources, capital, technology, information
● transformation; employee’s work, managerial activities, technological/operational activities
● output; product and services, financial results, information
● Intra: social networks within organizations
● Inter-organisational networks (ION): social networks between organizations. networks has
multiple relationships
● is Inter-organisational relations (IOR): relations between organizations. specific interaction
within network
○ affected by needs (organizational goals/functions) / access to resources / agreement
to pursue particular goals reduce uncertainty
→ ION and IOR as dependent;
- Why do organizations form relationships with other organizations?
- How do IORs form, develop, dissolve? How are they managed?
- Which factors explain changes in network structures over time?
→ ION and IOR as independent;
- effect of ION/IOR on behavior/outcomes of organizations?
- To what extent do different networks structure the impact on the project's success?
● Resource deficit: (common in IOR/ION): organizations lack all necessary resources
to attain their goal. drives to form ties with other organizations + achieve mutual
benefit
→ exchange theory
REDUCE UNCERTAINTY
● Internal: designing organizational structures to produce a closed and stable system in the
core technology component.
● External: organizations can make relations with other organizations more reliable and
predictable. ⇒ Interdependence
STRATEGIES
1. Cooperative strategy; together with company that already has new technology
2
, → to obtain reliable commitments from other actors (this requires making a
commitment in return). while such commitments reduce uncertainty, they also
place constraints on future action
2. Competitive strategy; invest in new technology
→ Maintaining alternative resources (prevents concentration of power over the
organization)
Seeking more power or prestige (gaining power without increased commitment)
● Resource dependence theory: Organizations are not self-sufficient and need to manage
resource dependencies to reduce uncertainties in their environment
○ greater the organization’s dependence on the resources of other actors, and the
lesser the availability of alternative sources, the greater the power of these actors
over the organization
○ The actors use the political power to impose their interests & demands on the
organization
○ aim buffering/bridging; to access resources, to stabilize outcomes / market rents, to
prevent environmental control, to coordinate the respective interests of actors
● Isomorph: mechanism by which organizations conform to rules, values, beliefs of
their institutional context → process by which organizations become similar in
structure, practices, or behavior over time.
○ Coercive: state, regulators that exercise legitimated power over organizations;
impose norms with fines, sanctions
○ Mimetic: organizations tend to imitate other organizations (especially successful
ones)
○ Normative: pressure for conformity arising from culture and norms of
professionalism.
NETWORK
● Network set of objects (nodes/positions/vertices/actors) and relations (edges/ties/links)
nodes (can be anything)
ties (link between 2 nodes)→ strength, (in)direct, contractual form,
single/multiplex, content
set of nodes
○ Social closure: realized ties (observed)
○ Structural hole: absent ties (not connected). 2 people connected by other person *
* structural holes and social actions → the nodes do not all have to be connected in triad
● Conduit: broker. action spanning the structural hole
● Tertius gaudus: 3th who benefits from competition between other 2. Create possibilities /
new idea’s / knowledge flow. make sure other 2 do not connect
ability of the broker to use her position for selfish interests
3
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller emmahamm. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $5.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
83750 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now