For each thread, students must
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Network Organizations and the Environmental Process
Debate on the relevance of network organizations has prevailed in the business and economics sphere for a long time. The notion of network organizations operates because big and small organizations do not function in socially unstructured environments. Instead, they are intertwined in the social network web. Since the emergence and realization of empirical evidence, different types of networks and their impacts on organizations have been identified. Network organizations must be ready to change and adapt to the prevailing environmental considerations. It is also vital for such organizations to look at adaptability areas and the time taken for changes in a given organization. This study evaluates the types of network organizations and their impact on environmental processes.
Types of Network Organizations
Network organizations refer to systems that follow up on the devotion of business organizations in sustainable projects such as the protection of the environment thus the relationship between the policies and process of environmental protection (Ahmady et al., 2016). Besides, network organizations refer to the surrounding environment where individuals organize and plan themselves to achieve common objectives. They are defined by purpose, process, and structural elements. It is important to note that network organizations combine both possible intangible and specialized assets in their structure under shared control. They also emphasize joint ownership that helps achieve integration of intercommunication and support in an effective, flexible, and efficient manner. Network organizations are viewed as a mix of firm and market and between market disaggregation and vertical integration (Scott & Davis, 2017). Today, several network structures exist, distinct and characterized by stable, dynamic, and internal labels.
The internal network structure exists in organizations based on the fundamental premise that if internal units are exposed to the competitive market, they remain innovative and attract market and entrepreneurial benefits without outsourcing funds or resources. It manifests when organization units buy and sell goods and services at prices tagged by the open market within themselves. Dynamic network structures make use of extensive outsourcing funds to support their operations (Ahmady et al., 2016). A dynamic network entails the establishment of temporary alliances between the potential partners and the independent organization operating within the value chain. This network manifests in the fashion industry, which displays short-cycle products. For instance, a prominent fashion industry gathers all specialists to develop a clothing line for the season. However, the specialist may not participate in producing the clothing line for the following season. This network also involves the production of Hollywood films and high-end technological firms.
Stable networks utilize outsourcing to maximize value chain flexibility. With a stable network, big firms take a primary role pf developing market-based connections for investors found within the network even when these investors or partners continue serving in other firms outside the network (Scott & Davis, 2017). This network keeps partners competitive in the market, especially the small firms. For instance, Nike company channels its resources toward research and marketing and, at the same time, allows other firms to proceed with production. These firms are permitted to produce for other competitors by Nike. Such networks are considered long-lasting and very stable compared to dynamic and internal networks.
Organization networks exist under three analytical levels: ego network, overall network, and network positions. The ego network is the simplest but vital in determining acquaintances, diversity, and knowledge. It aims to direct the organization’s contact with other organizations. The overall network is broader and encompasses all participants in a particular network. They assess and determine network density and whether the networks are centralized. Such organizations are considered flat, hierarchical, matrix, or silos, depending on their centrality. The network position seeks to recognize the place of actors within the organizational network level. Besides the analytical levels, networks can be measured using distance, centrality, and structural and clustering holes, which determine cohesion within a network.
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