Building And Create Success Inter Organizational Strategies

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To build and create success inter-organizational strategies are used by an organization to reduce uncertainty and manage resource interdependencies in its environment; this in turn will allow an organization the ability to protect and enlarge its organizational domain. An organization’s specific environment has to be managed in order to produce the greatest relationships with external stakeholders. There are two basic types of interdependencies that cause uncertainty in the specific environment, those are symbiotic and competitive. Interdependencies can be classified as symbiotic when the outputs of one organization are used as the inputs for another organization; this basically tells us that a symbiotic interdependency will be one…show more content…
We understand that an organization “…aims to choose and inter organizational strategy that offers the most reduction in uncertainty for the least loss of control.” (Jones, 71). There are two main types of linkage mechanisms, formal and informal, when an organization utilizes a more formal linkage mechanism there is usually more direct coordination and it goes to reason that the coordination is stricter and more explicit conversely when organizations engage in more informal linkage mechanisms there is usually less joint control, and the coordination is less explicit. Organizations have a range of acceptable strategies in which they can choose to manage symbiotic interdependencies; these strategies range from the less formal reputation, and cooptation to the more formal strategic alliance, and mergers and takeovers. Additionally since competition among rivals can threaten the current supply of resources and increase uncertainty within an industry organizations have multiple methods reduce the uncertainty caused by various levels of competition. These strategies also range from less to more formal and can include collusion and cartels, third-party linkage mechanisms, strategic alliances, and mergers and takeovers. The two less formal methods for managing symbiotic interdependencies are reputation and cooptation. The least formal and least direct
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