Interorganizational Networks

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  • The patterns and structure of relationships within various groups and organizations. An interorganizational network is often considered a strategic means by which to improve an entity's competitive advantage, manage uncertain environments, and satisfy their resource needs. Consequently, organizations enter into ties with other organizations that have resources and capabilities that can help them manage such constraints and environmental forces, which are beyond their direct control. Such coalitions are formed between task- or skill-specialized economic entities, independent firms, or autonomous organizational units and are characterized by trust and exchange of information with specific partners. Alliances are also formed in response to the need to share the costs and risks of technology development or large-scale projects, as well as to develop existing markets or penetrate new ones.

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