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Features Of Inter-Organizational Network

FEATURES OF INTER- ORGANIZATIONAL NETWORK

Abstract:
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 asserting the need for more in-depth study on the possible impact on Human Resource Management of a networked organization.

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1. Introduction:
Inter-organizational relations have taken shape in different forms. Organizations, among themselves, have formed contractual relationships or joint ventures or informal associations. Inter Organizational Network as a successful measure of increasing competitiveness has been recognized in various studies, e.g. the studies performed by Hartley et al (2002), Elworth (2000), Nooteboom et al (2000). Organizations form networks to be more successful in an increasingly competitive and uncertain market scenario. There have been studies to establish the effectiveness of forming and operating of these networks. (Samson Wong et al 2005, Downie et al 2002). The number and scope of inter-organizational networks have shown an increasing trend, especially in research oriented fields like biotechnology and pharmaceuticals. The growing phenomenon of inter- organizational network has also been referred as “virtual firm”.

2. Objectives:
The present study of Inter-organizational network limits itself to the following objectives-
• To understand the reason or motivation behind forming of networks...