The student must then post 2 replies of at least 600-700 words For each thread, students must support their assertions with at least 7 scholarly citations in APA format. Each reply must

Liang Xue

Discussion Thread: Network Organizations and Environmental Process

            Organizations are a complex and unique conglomerate of people and processes (Scott and Davis, 2017). Network analysis of an organization provides a way to visualize and analyze relationships and other crucial information to better understand an organization (Scott and Davis, 2017). Network organizational structure and organizational environmental processes are two important elements of an organization that need to be considered in order to ensure business success. Definition, characteristics, and perspectives of each network organizational structure will be presented. Various environmental processes that organizations experience will be described and explored such as technology changes, ecological processes, and new organizations. A personal perspective on network organizations and environmental processes will be provided along with biblical integration on the topic.

Stable, Dynamic, and Internal Networks

Stable Network

            A stable network is defined by a structure of a large core firm which creates market – based linkages to a limited quantity of upstream and downstream affiliates (Scott and Davis, 2017). Scott and Davis (2017) further elaborate that these partners can operate and serve other firms outside of the network and does not work exclusively with the core firm. Stable networks occur mostly in mature industries (Scott and Davis, 2017). An example of a stable network organization would be Nike. Nike concentrates its resources on research and development along with marketing while almost all production is outsourced to Asian manufacturing partners (Scott and Davis, 2017). These Asian manufacturers do not work exclusively with Nike but with other networks as well such as Addidas (Scott and Davis, 2017). China provides cheap workers and labor especially in labor-intensive markets which heavily stimulates businesses and China as a whole (Zou et al., 2022). Haeussler and Sauermann (2020) found that separation of labor leads to specialization and benefits such as increased productivity and coordination. With the cheap labor and the benefits created through specialization of work, stable networks provide some organizations with operational advantages (Haeussler and Sauermann, 2020; Zou et al., 2022). Lastly, another aspect of stable networks is that these relationships and between a core firm and its partners are relatively long – lived (Scott and Davis, 2017).

Dynamic Network

             A dynamic network is defined by a structure of an independent business operating with temporary alliances capture value (Scott and Davis, 2017). Scott and Davis (2017) further elaborate that dynamic networks these temporary alliances are chosen from a large pool of potential partners and, unlike stable networks, are not limited or set in quantity. An example of a dynamic network would be the high – end fashion industry (Scott and Davis, 2017). A brand may select from a numerous pool of creators to design a line of clothing to capture short term value from current trends and demands. Another example of a dynamic network is Hollywood film production (Scott and Davis, 2017). A producer is able to select from an expansive pool of actors and actresses to temporarily make a product to capture value. Lastly, another example of dynamic networks would be in the fast – moving high tech industry in which companies focus on designing products while they outsource all aspects of the supply chain to other, typically international, entities (Scott and Davis, 2017). Nuruzzaman and Weber (2021) stated that buying and selling of goods from another country provides several advantages compared to only buying from local retailers. This allows customers and companies to have access to a variety of products and sellers all over the world at their fingertips, hence, product sourcing costs and time has lessened dramatically through globalization (Nuruzzaman and Weber, 2021). Dynamic network alliances are typically short – termed and exist predominantly in industries with short product life cycles (Scott and Davis, 2017).

Internal Networks

            An internal network is defined by a structure of organizational units that buy and sell goods and services amongst themselves at established market rates (Scott and Davis, 2017). Scott and Davis (2017) state that internal networks bring market transactions inside organizational boundaries. An example of internal networks is an organization with multiple outsourced departments such as a third-party provider for human resourcing, consulting, and manufacturing needs (Scott and Davis, 2017).

Environmental Process and Areas

            Organizational environments are not only the physical setting and location of an organization but culmination of a wider range of environmental influences as well (Scott and Davis, 2017). These environmental influences can not only be in the present and in the near vicinity but in the past and from a distance as well (Scott and Davis, 2017). Tushman and Anderson (2018) states that in order to gain a better understanding of organizational dynamics and outcomes, determinants of environmental change must be understood fully. Many organizational factors such as legal, political, technological, and even structural factors play a role in shaping environmental conditions in an organization (Tushman and Anderson, 2018). Environmental processes can include but are not limited to technological changes, ecological process, and new organizations.

Technological Change

           Technological innovations in organizations can be grouped into the two categories of those that enhance the competence of existing organizational participants and those that displace the competence of organizational participants (Scott and Davis, 2017). Hoffman et al. (2022) states that new technologies can create new interaction opportunities, new data/ information, create new marketing innovations, and require new marketing framework/ governance. Hoffman et al. (2022) states that new technologies provide novel benefits like market insights and new information that can be valuable in critical decision-making but also cause disruption in the current state of operation for organizations. Puntoni et al. (2022) states that technology changes, such as AI innovation, incorporation into organizations is disruptive and needs to be handled properly to see benefits.

Ecological Processes

            “Specialist” exhibits a limited range of tolerance for environmental variation while a “generalist” exhibits the ability to survive under diverse conditions (Scott and Davis, 2017). Specialist and generalist are two organizational strategies identified by ecologists for survival (Scott and Davis, 2017). Scott and Davis (2017) state that “niche – width” is defined by an organizations ability to tolerate changing levels of resources. Generalist organizations tend to succeed by moving to the center of the market and appealing to the overall larger market (Scott and Davis, 2017). Specialists find success by satisfying the customer demand in more selective or specific areas of the market (Scott and Davis, 2017). Another important assumption in ecology studies is density dependence. Density dependence suggests that available resources or firms encourage additional births of similar entrants and increased failure rates discourage new entrants (Scott and Davis, 2017). The arrival of organizational ecology has brought many benefits, but much research needs to be done in the future because traditional assumptions in biological ecology models do not apply across large and diverse populations (Scott and Davis, 2017).

New Organizations

            Entrepreneurship is often associated with the founding of new organizations (Scott and Davis, 2017). Creation of new organizations is defined by and encompasses many factors and variables such as planning, procuring, and executing processes and resources (Scott and Davis, 2017). It is important to note that most new organizations are “reproducer” rather than “innovator” organizations (Scott and Davis, 2017). Scott and Davis (2017) define “reproducer” organizations as organizations that are started in existing populations whose routines and tendencies very minimally and the processes of said organization mirror existing organizations with minor variances.

Impact of Stable, Dynamic, and Internal Networks

            Organizations operating in a network dynamic are better able to coordinate and utilize resources (Scott and Davis, 2017). Division of labor, responsibilities, and risk is also associated with a network structure of organization because a firm is relying on other entities (Scott and Davis, 2017). Culot et al. (2019) states that specialization in a manufacturing environment results in opportunities for industries and companies to capitalize on their value chains, strategies, and operations. Ivanova (2022) adds that diverse information, resources, and experience lead to increased efficiency of projects. Organizations operating in a network setting are able to capture additional benefits organizations operating by themselves cannot.

Personal Perspective and Biblical Integration

            Societies can be analyzed in terms of the network structures of their economies and politics (Scott and Davis, 2017). The network structure of the economy of the United States can mostly be described as a stable structure. United States economy operates as a core firm while having long lasting relationships with partners to outsource certain works and resource needs. Li et al. (2023) states that NATO is the world's largest and longest lasting military and trade alliance with 31 participants. Li et al. (2023) further elaborates that the United States has long been its most influential member amongst the partners with policies made that are oriented toward addressing United States specific diplomatic priorities and geopolitical strategies. Societies can be analyzed in terms of network structures of their economies and politics (Scott and Davis, 2017). United States economy and politics in certain ways operate in a stable network with long -term relationships amongst partners.

            “Two are better than one because they have a good return for their labor. For if either of them falls, the one will lift up his companion. But woe to the one who falls when there is not another to lift him up. Furthermore, if two lie down together they keep warm, but how can one be warm alone?" (English Standard Version Bible, 1978/2011/2023, Ecclesiastes 4:9). Ecclesiastes 4:9 states that two is better than one because in a partnership one is there to lift up the other. Networks are described as ties among participants and organization entities (Scott and Davis, 2017). Similar to the Ecclesiastes 4:9, it is better for organizations to work in networks since it provides relationships that allow the sharing of resources, information, and energy.

Conclusion

            Organizations are a complex and unique conglomerate of people and processes (Scott and Davis, 2017). Network analysis of an organization provides a way to visualize and analyze relationships and other crucial information to better understand an organization (Scott and Davis, 2017). Network organizational structure and organizational environmental processes are two important elements of an organization that need to be considered in order to ensure business success. A stable network consists of a core firm and partner firms upstream and downstream of the core firm. Relationships in stable networks tend to be long – term and unexclusive (Scott and Davis, 2017). On the contrary, dynamic networks consist of many short – term alliances between a large pool of participants to accomplish a goal or task. Internal networks are a structure of organizational units that buy and sell goods and services amongst themselves at established market rates (Scott and Davis, 2017). Each organizational structure operates in a network which can be described as ties among participants and ties amongst organizations (Scott and Davis, 2017). While network organization are important to analyze to better understand an organization, environmental processes are equally important and can be described as a culmination of a wide range of environmental influences (Scott and Davis, 2017). Tushman and Anderson (2018) claims that in order to gain a better understanding of organizational dynamics and outcomes, determinants of environmental change must be understood fully. Many organizational factors such as legal, political, technological, and even structural factors play a role in shaping environmental conditions in an organization (Tushman and Anderson, 2018). Technology changes is an environmental process that can bring many benefits but can be equally disruptive if preparation is not adequate. Ecology processes focuses on dynamics of populations which includes growth rates, failure rates, demographics, and politics. Creating new organizations are environmental areas defined by “reproducers” and “innovators” (Scott and Davis, 2017). Network organization forms allow each participant to be nimble by exposing it to market tests, while reaping the information and trust benefits of relatively close ties with other participants (Scott and Davis, 2017). An overview of technology network organization and environmental processes is described and elaborated upon. Supporting evidence from other research has provided to support a better understanding of the topic while a personal perspective was included to provide enrichment on network organizations and environmental processes. Finally, a biblical integration was included to invoke discussion from a moral/ ethical framework.

References

Culot, G., Orzes, G., & Sartor, M. (2019). Integration and scale in the context of Industry 4.0: the evolving shapes of manufacturing value chains.  IEEE Engineering Management Review,  47(1), 45-51.

Haeussler, C., & Sauermann, H. (2020). Division of labor in collaborative knowledge production: The role of team size and interdisciplinarity.  Research Policy,  49(6), 103987.Jalilibal, Z., Amiri, A., Castagliola, P., & Khoo, M. B. (2021). Monitoring the coefficient of variation: A literature review.  Computers & Industrial Engineering, 161, 107600.

Hoffman, D. L., Moreau, C. P., Stremersch, S., & Wedel, M. (2022). The rise of new technologies in marketing: A framework and outlook.  Journal of Marketing, 86(1), 1-6. doi:10.1177/00222429211061636

Ivanova, E. (2022, August). An Applied Knowledge Framework to enable knowledge reuse in consulting firms. In  European Conference on Knowledge Management (Vol. 23, No. 2, pp. 1412-1418).

Li, B., Ge, Y., & Lin, Y. M. (2023). Military alliance and international trade: Evidence from NATO enlargement.  The World Economy.

Nuruzzaman, M., & Weber, A. N. (2021). Supply chain in cross-border e-commerce. In  Cross-Border E-Commerce Marketing and Management (pp. 54-77). IGI Global.

Puntoni, S., Reczek, R. W., Giesler, M., & Botti, S. (2022). Consumer experiences with marketing technology: Solving the tensions between benefits and costs.  NIM Marketing Intelligence Review, 14(2), 25-29. doi:10.2478/nimmir-2022-0013

Tushman, M. L., & Anderson, P. (2018). Technological discontinuities and organizational environments. In  Organizational Innovation (pp. 345-372). Routledge.

Zou, L., Shen, J. H., Zhang, J., & Lee, C. C. (2022). What is the rationale behind China's infrastructure investment under the Belt and Road Initiative.  Journal of Economic Surveys,  36(3), 605-633.

Scott, W. R., & Davis, G. (2017).  Organizations and organizing: Rational, natural and open systems   perspectives Routledge.

Jeffrey Bartrom

Network Organizations

            A network organization is a decentralized company structure that operates as a network of autonomous businesses or business units as opposed to a traditional centralized, hierarchical structure. Today’s global business market has allowed organizations to grow through the network organization model such as Starbucks on a larger scale. Globalization has led to organizations that allows individuals, or establishments to facilitate themselves to accomplish a common objective for the organization (Sareen & Pandey, 2022). Normal organizations have formal boundaries in place, whereas network organizations are a social relation that expands far beyond the typical formal boundaries which are the main core of the network. When you look at an organization, structure, mechanism, and function are components that project network association. Network organizations also rely heavily upon communication while sharing resource through shared administration. Understanding this leads to show that network organizations are a mixed market and business that straddles the line between vertical combination and market disaggregation (Kullak, 2021).

            Network structures and organizational design cultivate the development of three different network structures. The three different types of network organizational structures are functional/ internal, stable/matrix and dynamic/hybrid (Kullak, 2021). Under functional/internal structure, employees are grouped into the same departments based on similarity in their skill sets, tasks, and accountabilities. This allows for effective communications between people within a department and thus leads to an efficient decision-making process within the organization. The divisional structure organizes business activities into specific market, product, service, or customer groups (Kullak, 2021). The purpose of the divisional structure is to create teams that can produce similar products matching the needs of individual groups. An example of the divisional structure is geographical structure, where regional divisions are built to provide products or services to specific locations. Matrix structure is a combination of functional and divisional structures. This structure allows decentralized decision making, greater autonomy, more inter-departmental interactions, and thus generating greater productivity and innovation (Kullak, 2021). Lastly, the hybrid structure combines both functional and divisional structure. Hybrid Structure divides its activities into departments that can be either functional or divisional. This structure allows the utilization of resources and knowledge in each function, while maintaining product specialization in different divisions. The hybrid structure would be the most common network organization structure that many companies utilize and implement in today’s global market (Kullak, 2021).

Functional Internal Network Organization

            Internal network organizations base themselves on the primary view that if internal units are exposed to harsh levels of market competition, they will continue to innovate and attain market benefits (Scott, 2007). The self-containment of internal network organizations usually is made up of internal systems that products and keep product inhouse versus outsourcing. This is achieved by having multiple internal units that produce and contribute to the overall organization but operate independently. Having these internal units allow for profit centers as they are delivering a product in the network. An example of this type of system is auto manufacturers, specifically General Motors. GM's component business maintains independent divisions that specialize in the production of some aspect of the automotive system. This allows those independent organizations to negotiate and interact with the organization as the overall goal is to maintain a certain price point for products. The overarching organization is the broker while its individual units are profit centers that seek to enhance the systems performance while reducing overall price costs.

Stable Matrix Network

            Stable networks consist of firms engaged in long term relationships with external suppliers who bring expertise into the parent company. A stable network maintains the connectivity and knowledge flow between all actors even if some actors leave the network, if they break relations, or if the overall density of interactions within a network changes (Gao et al., 2016). A firm that maintains a stable network is reliant on some level on outsourcing to increase its flexibility and product delivery system (Scott, 2007). These firms would have many external vendors that they have contracts in place that directly benefit the overall organization. One example of this in play is the Japanese automotive manufacturers, this is because all the external vendors have a very dedicated and committed relationship to the core function of the larger organization.

Dynamic Hybrid Network

            With the rapid growth and uncertainty with global business, organizations make use of extensive outsourcing to facilitate its operations. The organizations are formed when a lead firm identifies and engages in the assemble of assets, if not entirely, by other organizations (Scott,2007). The unique thing about Dynamic organizations is that they often are not as involved in partnering with the outsourced vendors. This means that the organizations focus on a vendor for only a particular service while fulfilling the contract to others for other skills.

Organizational Ecology

            Organizational ecology utilizes insights from biology, economics, and sociology, and employs statistical analysis to try to understand the conditions under which organizations emerge, grow, and die. The ecology of organizations is divided into three levels, the community, the population, and the organization. The community level is the functionally integrated system of interacting populations. The population level is the set of organizations engaged in similar activities. The organization level focuses on the individual organizations. This large approach allows researchers to give a unique viewpoint on organizational change that occurs over a long process that identifies specific attributes, allowing for a more longitudinal viewpoint. Social community aspect studies the rates of organizational creation, the demise of organizations and change in organizations. Organizational ecology is concerned with the capacity of the environment to support organizations and the rate of growth and decline of organizations within the environment. Each of these forces is “part of what is called Organizational Mortality” (Mueller & Stegmaier, 2015).

Theories of Organizational Ecology

Theories about inertia and change are fundamental to organizational ecology, which seeks a better understanding of the broader changes in the organizational landscape (Tran & Santarelli, 2021). Both internal and external resistance to change can result in organizational inertia, providing some resistance to organizational adaptation. Given the limits on firm-level adaptation, most of these broader changes come from the entry and selective replacement of organizations (Tran & Santarelli, 2021). Organizational ecology is used to understand the founding and mortality rates of organizations. Niche theory distinguishes broadly between two types of organizations: generalists and specialists (Hannan, 1977, as cited in Senderovitz, & Evald, 2016).

 Generalist organizations maximize their exploitation of the environment and accept the risk of experiencing a change in that environment. On the other hand, specialist organizations accept a lower level of exploitation in return for greater security. The niche theory explains variations in industrial structure in different industries. The theory shows how different structures in different industries, generalist vs specialist organizations are shaped by relevant environments (Hannan, 1977, as cited in Senderovitz, & Evald, 2016).

Ecological Process

            Ecosystem process consists of a network of interlinked companies that dynamically interact with each other through competition and cooperation to grow sales and survive. An ecosystem includes suppliers, distributors, consumers, government, processes, products, and competitors. Some main examples of important organizational ecosystems are digital and industrial which differ in their interactions and processes. Organizational ecosystem is an ecosystem where the main players facilitate an economic community by utilizing the resources in the habitat (Rossit, 2019). The prime resources are raw materials and technology (Scott, 2016). The main players are producers, suppliers, consumers, competitors, and government agencies. These organisms in the ecosystem interact, producing goods and services. Like a biological ecosystem, the participants and the processes in the organizational environment continually evolve to increase and maintain efficiency. Therefore, the system is dynamic, constantly remaking since it reacts to forces like innovations, technological advancements, and competition.

An example of this is how the organization is taking raw resources from the earth to create and manufacture a product that moves through all entities until it reaches the end user and then is eventually returned to its raw material through its lifecycle. This process relates to how ecology of how organisms interact with its environment to grow thrive and reach different stages until it hits final stage.

Environmental Impact

            Another angle to view network organizations and their interaction with environmental process, is their direct impact upon the environment. Sustainability has come into focus of organizations as the earth’s resources are being impacted and have a responsibility to the earth and their own survivability. Sustainability is now interpreted concurrently with the elements of corporate social sustainability which entails social, environment, and economic input. Protection should be considered as part of the primary operating goals of any business, with focus on the direct implications of an organization’s activities to the environment. The environmental protection policies focus on promoting safe standards for organizations to operate in while also ensuring their network of organizations aren’t harming the environment. The restrictions in the environment protection policies minimize the exposure to hazards, irrespective of an individual’s location (Gibson et al., 2014). An organization or company can achieve environment protection as part of the sustainability initiatives by putting in place measures that reduce on the effect of industrial wastes to the environments, such as the installation of filters that trap the impurities in industrial fumes before release into the environment.

The interaction that Organizations have with the environment directly impact the resources that those companies solely depend upon. So having good environmental and ecological process and standards allow the company to have a full lifecycle of from raw materials to finished product over and over (Kullak, 2021). If you look at the lumber industry, it once was a network organization that was made of many companies that strip large amounts of forestry to send to main firms that then sold it to other firms in the network to produce products (Rossit, 2019). The issue was that the main firms weren’t forward thinking to realize that once they stripped the forest it was barren and ruined other resources around it thus cutting the lifecycle of the ecological process short (Rossit, 2019). Now lumber companies who harvest timber replant new trees in place of the old ones to continue the cycle while also being sustainable to the rapid growth and need from main firms in the network.

Biblical Integration

            1 Kings 6:38 tells us that Solomon, “In the eleventh year in the month of Bul, the eighth month, the temple was finished in all its details according to its specifications. He had spent seven years building it (Merida, 2015). Using the example of King Solomon allows the insight that there was a network organization made up to create the temple. This was done by Solomon cultivating a relationship with Hiram, which was noted in 1 Kings 5:12. “And the LORD gave Solomon wisdom, as he promised him: and there was peace between Hiram and Solomon; and they two made a league together”.

            This partnership directly aligns to what modern day organizations are comprised of, they have a commonality and goal that unites them. Deeper into the readings Hiram agrees to Solomon's request to supply him with cedar and cypress trees for the construction of the Temple.

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