Features of Inter-Organizational Network Essay
This paper tries to study the different aspects of Inter-Organizational Network through literature survey method. It concentrates on the core reasons for forming networks from two different perspectives (transactional and sociological). The elements of network formation are identified dividing them into essential and facilitating factors. It discusses effects of inter-organizational network on the industry. The paper also highlights the feature of knowledge transfer in organizations through networks. Lastly, it tries to focus on the possible impacts that the formation of networks can have on Human Resource Management functions of the networked organization. The paper concludes by …show more content…
iii) Stability is the second facilitating factor for inter-organizational network. The political, socio-cultural and broad economic environment must provide the required stability for the smooth functioning of the network. In order to bring in cooperation and coordination among the network members, stability is important. Instability in the environment will not allow the individual members of the network to utilize their resources properly and collectively.
iv) Many Inter-organizational networks are born to address the scarcity of resources. So, a resource, a contextual factor, is a facilitator in the network-formation process itself. The formation and sustainability of a network is dependent on the availability of a minimum level of resources- money, time and human resources. The actual amount minimum resource availability, will depend on the structure, size and functioning (scope and scale) of the network.
These four factors are the main motivators for the collective action necessary for formation of network. But, the presence of these factors alone does not necessitate the formation of a network. There are two other factors which