Chapter Five

Interorganizational Relationships

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© 2004 5-1
 A Framework of Interorganizational
Relationships*
Organization Type
Dissimilar Similar

Resource Population
Competitive Dependence Ecology
Organization
Relationship

Cooperative Collaborative
Network Institutionalism

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*Thanks to Anand Narasimhan for suggesting
this framework.
© 2004 5-2
 Changing Characteristics of
Interorganizational Relationships
Traditional Orientation:
Adversarial
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
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

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© 2004 5-3
 Elements in the Population Ecology
Model of Organizations

Variation Selection Retention

Large number Some A few

of variations organizations organizations
appear in the find a niche grow large and
population of and survive become
organizations institutionalized
in the
environment
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© 2004 5-4
 Three Mechanisms for Institutional
Adaptation
Mimetic Coercive Normative
Reasons to Duty,
become Uncertainty Dependence
obligation
similar:
Innovation Political law, Professionalism—
Events: visibility rules, sanctions certification,
accreditation
Social Culturally
basis: supported Legal Moral

Example: Reengineering, Pollution controls, Accounting

benchmarking school regulations standards,
consultant
Source: Adapted from W. Richard Scott,
Thomson Learning training
Institutions and Organizations (Thousand Oaks,
Calif.: Sage, 1995). © 2004 5-5