Network forms of organization Economists Market (costs) Hierarchy (principal- agent) Sociologists Trust Distinct ethic (moral community) Podolny, J.M. - презентация

1 Network forms of organization Economists Market (costs) Hierarchy (principal- agent) Sociologists Trust Distinct ethic (moral community) Podolny, J.M. and Page, K.L. (1998) "Network forms of organization", Annual Review of Sociology, 24(1):57-76

2 Functions of network forms of organization Learning Foster learning and rapid transfer of information. Common in Hi-Tech industries Legitimation and Status Status through the affiliation. High status. Especially important for start-ups Economic benefits Reduced Costs and quality due to trust and quality control Others (less uncertainties, sense of community) Podolny, J.M. and Page, K.L. (1998) "Network forms of organization", Annual Review of Sociology, 24(1):57-76

3 What affects variance in the adoption of the network form? Power Weak corporations would prefer the network form. Conditions at time of founding. Inertia: IBM (old; vertically integrated), Sun (new; vertically disintegrated) Nationality Collectivist orientation Podolny, J.M. and Page, K.L. (1998) "Network forms of organization", Annual Review of Sociology, 24(1):57-76

4 Constraints on network formation Technological distance. Technology-sharing alliances Intermediate similarities of technologies is the best. Status High status actors must avoid affiliating with low status actors. Connections A dyad will enter into an alliance with one another is a function of past direct contact between the pair and the presence of indirect network connections though others in the industry. Reputation Podolny, J.M. and Page, K.L. (1998) "Network forms of organization", Annual Review of Sociology, 24(1):57-76

5 Why are there no network failures? Experience The likelihood that network will fail decreases with the partners experience with the form. Behavior determinants Level of task integration, similarity of organizational cultures, and commonality of organizational goals Reputation Less information about reputation and less peer control increase the likelihood that a strategic alliance will end in failure Podolny, J.M. and Page, K.L. (1998) "Network forms of organization", Annual Review of Sociology, 24(1):57-76