Background

managing it in government, business & communities
Chapter 16 - Interorganizational Relationships, Strategic Alliances, and Networks: The Role of Communication Systems and Information Technologies
Managing IT in Government, Business & Communities
by Gerry Gingrich (ed) 
Idea Group Publishing 2003
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The studies about IOR and ION are not new. On IOR, sociologists carried out a series of studies in the late 1950s to early 60s (Dill, 1958; Levine and White, 1961; Litwak and Hylton, 1962). And on ION, studies were also carried out in the mid-60s (Evan, 1966; Caplow, 1964).

However, the reason why IOR and ION have been becoming significant is primarily that the development of information technologies (IT) change the way IOR and ION are.[2] Secondly, changes in organizational environments are so rapid and enormous. In other words, we are in an age of turbulence now. [3] In such an environment, a flexible organization, such as network organization, is more suitable to meet its environment than legacy bureaucratic organization. The concept of network organization covers both intra- and inter-organization (Rockart and Short, 1991).

On the other hand, progress of globalization and development of IT competition keener. In order to survive against such an environment, an organization needs to ally with other organization(s), formulate an ION, and try to overcome the difficulties that a single organization cannot do.

I will classify IOR first, and then study strategic alliance as a cooperative relationship. Then, I will refer to ION, as strategic alliance is actualized in the form of ION.

Barnard (1968) took up "communication" as one of the three basic elements necessary for formulating organizations. Simon (1976) grasped "organizations" as information processing systems especially for decision-making. Nonaka insisted that organizations are not mere information processing systems, but are also systems that create information (Nonaka, 1985) and even knowledge (Nonaka, 1991; Nonaka and Takeuchi, 1995).

In this regard, I think it is significant that we grasp ION as communication systems, information processing systems, information creating systems and knowledge creating systems. Among these systems, I will concentrate on the subject of "organization as communication system" and expand it to ION by using Barnard's theory here.

[2]In MIT's research program on the management in the 1990s, Scott Morton (1991) listed the following six major findings of the research:

  • IT is enabling fundamental changes in the way work is done

  • IT is enabling the integration of business function at all levels within and between organizations

  • IT is causing shifts in the competitive climate in many industries

  • IT presents new strategic opportunities for organizations that reassess their missions and operations

  • Successful application of IT will require changes in management and organizational structure

  • A major challenge for management in the 1990s will be to lead their organizations through the transformation necessary to prosper in the globally competitive environment

[3]Hall (1991) took up "general environment characteristics" as an important element of the framework for IOR analysis. Based on Aldrich's research (1979) on important dimensions of general environment, he listed turbulence, environmental complexity, homogeneous-heterogeneous, environmental capacity, stability-instability, and concentration-dispersion, as important dimensions of general environment

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Managing IT in Government, Business & Communities
Managing IT in Government, Business & Communities
ISBN: 1931777403
EAN: 2147483647
Year: 2003
Pages: 188

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