SUMMARY OF IOR: LECTURES
Learning goals
• Knowledgeable on the most important concepts and theoretical models in the field of inter-
organizational studies;
• Knowledgeable on the most important quantitative and qualitative measurements and
measurement models related to the theory set of inter-organizational relationships and
networks;
• Able to analyze network data using the most important network analytical concepts with the
computer program R;
• Able to compare key theories in the field of inter-organizational relationships and networks;
• Able to choose the most appropriate theory or combination of theories given a research
problem in the field of inter-organizational relationships and networks;
• Able to develop basic research questions for a given data set and connect them to the
appropriate theoretical and methodological backgrounds;
• Able to relate practical inter-organizational phenomena to the appropriate theoretical
approaches;
• Able to formulate basic policy recommendations on the basis of empirical research results in this
field;
• Able to communicate orally in English about theoretical and empirical topics of this course.
1
,EXPLORING THE FIELD (LECTURE 1.1)
Part 1: General overview, Network as a form of governance
This lecture introduces the field of Interorganizational Relationships (IOR): how organizations
interact, cooperate, and form networks to achieve goals that they cannot achieve alone. It sets the
foundation for studying network structures, theories, and governance in organizational contexts.
Example: The Theater Case
• The theater illustrates organizations as open systems that constantly interact with their
environment.
• A single theater performance involves many stakeholders (ticketing, catering, parking, artists,
doormen, etc.), showing that value creation happens through a network of service encounters,
not by a single organization.
• This connects to service delivery networks (Tax et al., 2013).
Network structures or positions…
• Vary → networks are not all the same (some are centralized, others decentralized).
• Come with different benefits and constraints → where an organization is positioned in a
network affects what it can access (e.g., information, resources, legitimacy).
• Can be changed (to some degree) → through interventions or strategic choices, organizations
can reshape their relationships.
General causal logic in IOR research:
Conditions/Intervention → (Theory) → Network Features → (Theory) → Outcomes
• Conditions/Interventions: factors that shape how networks look or evolve (e.g., policy, funding
programs, environmental changes).
• Network Features: the structural properties (centralization, density, tie strength, etc.).
• Outcomes: the results at the organizational or network level (e.g., performance, innovation,
effectiveness).
• Theories connect these elements: explaining how and why network features form and lead to
outcomes.
•
Example: Performance Feedback (Greve, 1998)
This example shows how organizations change behavior based on performance relative to their
aspirations:
• Organizations compare:
o Peer performance → social aspiration
o Own past performance → historical aspiration
• When performance is below aspiration, the probability of change increases (organizations
adjust structure, strategy, or ties to improve).
• When performance is above aspiration, organizations are more likely to maintain current
structures (no incentive to change).
Applied to networks:
• If a network (or an organization in a network) performs below expectations, it might restructure
ties or seek new partners.
• If it performs well, it tends to stabilize existing relationships.
2
,NETWORK AS SOCIAL STRUCTURE
A network is defined as a set of nodes and the set of ties representing some relationship, or lack of
relationship, between the nodes. Nodes can be individuals, teams, units, organizations… (Borgatti et
al., 2009)
Elements of structure
Serendipitous vs engineered IONs
→ Important to know the distinction between these two
• Serendipitous networks: social systems on the basis of dyadic or triadic interactions between
organizations but without having necessarily a common goal, a joint identity or even conscious
knowledge of each other beyond the direct contacts. → Emerge naturally through interactions.
• Designed/Engineered (purpose-oriented) networks: Inter-organizational networks that are
consciously created by a lead organization or more bottom up by professionals in different
organizations to achieve network level goals that none of the organizations could achieve on
their own. → Deliberately created to achieve collective goals.
3
, An interorganizational relationship
Perrow (1993) and Provan, Fish & Sydow (2007) (key authors in IOR research) describe an
interorganizational relationship as: A relationship between two or more autonomous organizations
that interact to achieve goals more efficiently and effectively.
→ So, these are not departments within a single firm, but separate organizations (e.g., a university
collaborating with a company, or a hospital partnering with a government agency).
Levels of Analysis (from Perrow’s diagram)
Level Focus Typical Topics
Individual Single person Motivation, behavior
Group Teams or small Group dynamics,
groups communication
Department Sub-unit of a firm Coordination,
efficiency
Division Larger Strategy, control
organizational unit
Organization Entire firm Structure, culture
Interorganization Two or more Competition,
organizations cooperation,
exchange, dominance
Organizational Networks of Boundaries,
set multiple heterogeneity,
organizations stability
→ key takeaway: interorganizational relationships sit above the organization level: focusing on how
organizations relate to each other.
Types of Ties (Borgatti et al., 2009)
→This framework helps to decide what kind of relationship is being studied.
Relationships can take many forms. Understanding what kind of ties exist between organizations
helps explain:
• How resources or knowledge flow across boundaries.
• How power and influence are distributed.
• How innovation and coordination occur in networks.
Interorganizational relationship: reading Sydow et al. (2016)
Sydow, J., Schüβler, E. and G. Müller-Seitz (2016). Managing Inter-organizational Relations. Debates
and Cases. London: Palgrave: 3-24.
4
Learning goals
• Knowledgeable on the most important concepts and theoretical models in the field of inter-
organizational studies;
• Knowledgeable on the most important quantitative and qualitative measurements and
measurement models related to the theory set of inter-organizational relationships and
networks;
• Able to analyze network data using the most important network analytical concepts with the
computer program R;
• Able to compare key theories in the field of inter-organizational relationships and networks;
• Able to choose the most appropriate theory or combination of theories given a research
problem in the field of inter-organizational relationships and networks;
• Able to develop basic research questions for a given data set and connect them to the
appropriate theoretical and methodological backgrounds;
• Able to relate practical inter-organizational phenomena to the appropriate theoretical
approaches;
• Able to formulate basic policy recommendations on the basis of empirical research results in this
field;
• Able to communicate orally in English about theoretical and empirical topics of this course.
1
,EXPLORING THE FIELD (LECTURE 1.1)
Part 1: General overview, Network as a form of governance
This lecture introduces the field of Interorganizational Relationships (IOR): how organizations
interact, cooperate, and form networks to achieve goals that they cannot achieve alone. It sets the
foundation for studying network structures, theories, and governance in organizational contexts.
Example: The Theater Case
• The theater illustrates organizations as open systems that constantly interact with their
environment.
• A single theater performance involves many stakeholders (ticketing, catering, parking, artists,
doormen, etc.), showing that value creation happens through a network of service encounters,
not by a single organization.
• This connects to service delivery networks (Tax et al., 2013).
Network structures or positions…
• Vary → networks are not all the same (some are centralized, others decentralized).
• Come with different benefits and constraints → where an organization is positioned in a
network affects what it can access (e.g., information, resources, legitimacy).
• Can be changed (to some degree) → through interventions or strategic choices, organizations
can reshape their relationships.
General causal logic in IOR research:
Conditions/Intervention → (Theory) → Network Features → (Theory) → Outcomes
• Conditions/Interventions: factors that shape how networks look or evolve (e.g., policy, funding
programs, environmental changes).
• Network Features: the structural properties (centralization, density, tie strength, etc.).
• Outcomes: the results at the organizational or network level (e.g., performance, innovation,
effectiveness).
• Theories connect these elements: explaining how and why network features form and lead to
outcomes.
•
Example: Performance Feedback (Greve, 1998)
This example shows how organizations change behavior based on performance relative to their
aspirations:
• Organizations compare:
o Peer performance → social aspiration
o Own past performance → historical aspiration
• When performance is below aspiration, the probability of change increases (organizations
adjust structure, strategy, or ties to improve).
• When performance is above aspiration, organizations are more likely to maintain current
structures (no incentive to change).
Applied to networks:
• If a network (or an organization in a network) performs below expectations, it might restructure
ties or seek new partners.
• If it performs well, it tends to stabilize existing relationships.
2
,NETWORK AS SOCIAL STRUCTURE
A network is defined as a set of nodes and the set of ties representing some relationship, or lack of
relationship, between the nodes. Nodes can be individuals, teams, units, organizations… (Borgatti et
al., 2009)
Elements of structure
Serendipitous vs engineered IONs
→ Important to know the distinction between these two
• Serendipitous networks: social systems on the basis of dyadic or triadic interactions between
organizations but without having necessarily a common goal, a joint identity or even conscious
knowledge of each other beyond the direct contacts. → Emerge naturally through interactions.
• Designed/Engineered (purpose-oriented) networks: Inter-organizational networks that are
consciously created by a lead organization or more bottom up by professionals in different
organizations to achieve network level goals that none of the organizations could achieve on
their own. → Deliberately created to achieve collective goals.
3
, An interorganizational relationship
Perrow (1993) and Provan, Fish & Sydow (2007) (key authors in IOR research) describe an
interorganizational relationship as: A relationship between two or more autonomous organizations
that interact to achieve goals more efficiently and effectively.
→ So, these are not departments within a single firm, but separate organizations (e.g., a university
collaborating with a company, or a hospital partnering with a government agency).
Levels of Analysis (from Perrow’s diagram)
Level Focus Typical Topics
Individual Single person Motivation, behavior
Group Teams or small Group dynamics,
groups communication
Department Sub-unit of a firm Coordination,
efficiency
Division Larger Strategy, control
organizational unit
Organization Entire firm Structure, culture
Interorganization Two or more Competition,
organizations cooperation,
exchange, dominance
Organizational Networks of Boundaries,
set multiple heterogeneity,
organizations stability
→ key takeaway: interorganizational relationships sit above the organization level: focusing on how
organizations relate to each other.
Types of Ties (Borgatti et al., 2009)
→This framework helps to decide what kind of relationship is being studied.
Relationships can take many forms. Understanding what kind of ties exist between organizations
helps explain:
• How resources or knowledge flow across boundaries.
• How power and influence are distributed.
• How innovation and coordination occur in networks.
Interorganizational relationship: reading Sydow et al. (2016)
Sydow, J., Schüβler, E. and G. Müller-Seitz (2016). Managing Inter-organizational Relations. Debates
and Cases. London: Palgrave: 3-24.
4
