Inter-Organizational Network Case Study

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Register to read the introduction… If organizations form networks with a narrow range of partners, then inter-organizational network can deny entry to many. Otherwise, if the organizations collaborate in a broad manner, the impact of networking is expansive, which allows other firms to enter the network. ii) The networking process promotes technological innovation. It is not only the firms engaged in the network, but also the other firms entering the industry later on, which benefit from the progress. iii) There is a transformative effect on the firms associated in an inter- organizational network. Firms engaged in networks adopt administrative or managerial innovations which would enhance competitiveness. In fact, engagement in a network will change the definition of competition for a firm. In an inter-organizational network, it is not necessary for firms to exclusively own assets to gain value from them. As a competitor in one project might become a partner in another, the organizations must also adopt to multiple roles in the business environment. …show more content…
Organizational learning is one of the essential features of inter-organization networks, as the networked organizations gain and share new knowledge. Facilitating the learning process naturally becomes a key responsibility of the Human Resource Management process. In the process, the main impediments to organizational learning are to be removed first. In a related study of western joint ventures of Japan in 1988, Pucik identified certain key areas which are obstacles to organizational learning in a collaborative environment. Pucik argues that the areas identified are not restricted to a specific organizational climate but are applicable to similar situations of collective organizational effort, like network.

The key areas are-

i) Human Resource Planning:
Inter-organizational networks or alliances are evolved due to a highly competitive environment of business. The objective or the intent behind forming the alliance might not be properly communicated to all levels of the organization. So the possible lack of communication might create a gap among the different levels of the networked organization depending on their level of involvement and importance in the networking process.
11

Often, the alliances are formed to deal with short term contingencies assuming that the competency balance in the formed alliance will remain unchanged in

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