Features of Inter-Organizational Network Essay

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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
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Because, the contractual and process elements that help in forming networks might vary from industry to industry.

5. Process of network formation-
Inter – organizational network, as a distinct from personal network of entrepreneurs have been discussed by O’donell (2001). The factors those are responsible for the process of Inter-organizational network have been divided into- Reciprocity, Legitimacy, Stability and Resources, according to Kimberly (2005).

i) Among the four factors, Reciprocity is considered as necessary condition. The other three factors are facilitators in the network formation process. The might be present at the time of network formation or they can be developed in the early stages of network formation.
The main objective of the Inter-organizational network is the accomplishment of collective goals for the participating organizations. The goals require inputs or contributions from other organizations, as no single organization is capable of achieving the goals on its own. The organizations, connected through network, derive benefits from other organizations’ structures. The benefit derived from joining an organization is must also be greater than the cost involved. Otherwise, a single organization does not derive any incentive from joining inter-organization network, choosing over individual goals and objectives.

ii) Legitimacy is the first of the three facilitating factors. It is essential to
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