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Network Structures: An Organizational Model

The document discusses network structures as an organizational model suited to contemporary economic challenges, promoting flexibility and efficiency. It explores the concepts of structure and network, the reasons for the emergence of network structures, as well as their advantages and success factors. Finally, it emphasizes the importance of information and communication technologies in the formation of these business networks.

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10 views21 pages

Network Structures: An Organizational Model

The document discusses network structures as an organizational model suited to contemporary economic challenges, promoting flexibility and efficiency. It explores the concepts of structure and network, the reasons for the emergence of network structures, as well as their advantages and success factors. Finally, it emphasizes the importance of information and communication technologies in the formation of these business networks.

Translated by

ScribdTranslations
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© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
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THE STRUCTURES IN

NETWORK
PLAN

• INTRODUCTION

• FIRST CHAPTER:
concepts et définition: structure, réseau, structure en réseau

• SECOND CHAPTER:
network structures: an original organization model

• THIRD CHAPTER:
the reasons for the emergence of network structures

• FOURTH CHAPTER:
the network structure as a strategy for cooperation
INTRODUCTION

The increasing complexity of the economic environment and


the general intensification of competition in many
sector, and the rise of powerful computer tools in terms of
processing and dissemination of information, imposes on
organizations a return to simplicity and flexibility,
By adopting a structure that facilitates adaptation, allowing for
manage costs and meet the need for complementarity
and expansion.
Among the structures that can face these challenges, the structures
in network ranks among the most appropriate and the most
promising. These structures are sometimes referred to as networked,
virtual, borderless or modular and covers all aspects
organizational, thus instead of relying on specialties
functional based in departments dedicating each
for specific tasks, she gathers employees to work
on one or the other of the organization's core competencies
• for example: eBay has become number one
worldwide online trading, thanks to
the virtual organization.
• network structures are therefore structures
resulting from formal or informal agreements that
are part of the long term and involve a
interaction between two or more partners in the
but of efficiency and effectiveness, without these
companies are financially and legally
dependent
FIRST CHAPTER: structure, network, and
network structure: concepts and definition

A/ STRUCTURE:
The structure brings together the various organs and the relationships between them (hierarchical or
functional)
This concerns the distribution of tasks, responsibilities, powers and
communications in the company.
According to Mintzberg, structure is the sum of the means used to divide work.
in distinct tasks.
The structure is defined by:
In functional form
His degree of formalization (use of written form)
Its degree of standardization (importance of procedures)
His level of decision-making (decisions at all levels decentralization)
The sphere of communication
Differentiation and integration
Criteria for choosing a structure:

• The size of the company


• Pursued strategy
• The age of the company
• Technology used by the company
• The business environment.
Different types of structures
• The hierarchical structure
• The functional structure
• The divisional structure
• The staff& Line structure
• The matrix structure
• The decentralized structure
Network concept
• A network is a set of nodes or
poles connected to each other by
links(channels). The nodes can be
simple mass points or under-
complex networks.
• Networks are in turn flows of
force, of energy or information.
Network structures
• The network structure is a structure where two
or several companies commit to each other
in long-term exchange relationships
term, these relationships are characterized by a
strong reciprocity of interest among actors and
requiring a constant effort of coordination
to avoid their disintegration, for the
network structures each member company
is legally and financially
independent.
Network structures
• In a network structure, one can
find companies with
different sizes, which will allow for the
network benefits from several
advantages
the advantages of structures in
network
• the network structure allows to benefit from
qualities reserved for large structures such as
stronger bargaining power, effect
experience, investment capacity
economies of scale.
thus benefiting from the specific advantages of
small structures such as strong capacity
of adaptation and innovation, specialization,
stimulation of competition, agility, flexibility
responsiveness, ability to challenge
Conditions for realization of
objectives of network structures
• La cofinance
• Proximity
• The duration of the relationship (relationship in the
language term
• The logic of competition/cooperation
animating the relationships between actors
Second chapter: network structures: a
original organizational model

• Some authors argue that the structures in


networks are just transitional forms and
without really having a future; others argue that it
constitutes a reference model in its entirety
• Williamson considers network structures
as a mediating structure between the market
and the hierarchy, but who cannot resist in
frequent cases of environmental disruption
network structures: a model
original organization
• Désreumaux observes that practices
agreements or cooperation between firms
distinctes ont d’abord été admises comme des
second-tier organizational solutions
• For other authors like Gianfaldoni et al
networked enterprises constitute a third
economic model of a separate organization
entire
• For others, network structures are at the
times of internal markets and hierarchies
outsourced
network structures: a model
original organization
• Since they are based not only on
market mechanisms (competition,
negotiation power, adjustment of
the offer and the demand) but also on
processes
hierarchical (subordination, supervision,
direct, centralization, of information
separation between design and execution
THIRD CHAPTER: the reasons for
the emergence of network structures

• Network structures as a response to


economic mutations
The evolution of the business environment
driven by political changes and
economic factors influenced the modes
of organization as well as the structuring of
intercompany relations. Indeed, the large
recessions have often reduced trade
international. But after the years of war,
the industry had to rebuild itself and invent
new models of organization.
the reasons for the emergence of network structures

• Network structures: solution to the limits of


reference model
Limits of the hierarchical model :
High cost of information management
Rigidity of behaviors
Reduction of adaptive capacities
Structural rigidity
The value of a string is always that of the most
weak link
the reasons for the emergence of network structures

• Limits of the market model:


High coordination costs due to the
negotiation of contracts and risk
of opportunism from intermediaries and
contractors
Narrow field of vision
Little room for the accumulation of information
discuss on technology, the product and
resources
Structural instability
• The concern of internalization
The network structure allows the company
to be present in several countries at the level of
the distribution or sale of products or
services (creation of subsidiaries, alliances,...) and of
take advantage of the benefits related to the level of
production (subcontracting, co-contracting, ...).
• The development of ICT and the transition to
the virtual company
Technological advancements have favored the
formation of business networks in particular
for multinationals or for partners
strategic by facilitating the exchange of
information and communication.
(The interconnection of computer networks via
Extranets or Internet
• Proximity is a historical factor explaining
the formation of structures

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