Organizations and Networks

Porter and Powell argued that networks “are a ubiquitous and critical feature of organizational life” and that all organizations, and the individuals within them, “are enmeshed in networks at varied, multiple levels”. While networks have always been important and relevant in understanding organizations, their impact and variety has expanded in recent decades due to a number of environmental factors: a shift away from the traditional vertically integrated company structure toward greater reliance on outsourcing; the urgency to access knowledge and resources that can only be found outside the legal boundaries of an organization; the need for greater coordination of activities as a result of strategic decisions to set up operations in multiple locations around the world; and the recognition that networks can and do provide significant benefits to the organization and its members in terms of access, timeliness and referrals. Networks come in different types (e.g., formal and informal) and can be found at different levels (e.g., intra- versus inter-organizational networks); however, their common value lies in the support that they can provide organizations in acquiring valuable resources such as advice, financial capital, technical knowledge, human capital, customers, suppliers and positive relationships with other stakeholders