Relations and networks of organizations
Lecture 1
➢ Relations organizations have with other entities
➢ Relationships matter
Understanding relations & networks of organizations
• What are IORs and IONs? Why are they important?
• Overview of ‘classic’ approaches and studies about IORs and IONs
• Social network analysis (SNA)
• Empirical analyses of causes and consequences of IORs and IONs
• Management of IORs and IONs
➢ Why is important: access to financial resources, entering new markets and more
➢ Tools to map the social relationships (between organizations)
➢ What are the consequences of networking? How can they help you?
➢ Focus on management styles
➢ To identify different types of networks: own network, national network of entrepreneurs,
alliance between two firms, great union
,Learning goals
After taking this course, you can expect to be able to:
1. Describe and explain the concept of social capital and apply the
theoretical ideas to empirical settings.
2. Know the basic concepts in social network analysis, explain their
meaning and apply them to analyze social network structures.
3. Describe, explain and compare determinants of IORs and IONs.
4. Describe, explain and differentiate consequences of relationships and
networks at the organizational level and be able to link consequences
to characteristics of IORs and IONs.
5. Describe, explain and apply concepts with regard to the management
of IORs and IONs.
6. Relate concepts of IORs and IONs to the field of organization studies.
7. Use and combine theoretical concepts in the area of IORs and IONs to
analyze and interpret specific organizational, societal or economic
problems.
8. Apply a number of analytical tools in the context of the study of interorganizational relations and
networks
,Rules of engagement
Classroom etiquette
• Arrive 5 minutes before the scheduled started.
• If you want to ask a question, just raise your hand.
• We really like answering questions and interaction!
ENGAGE students
• Join 5 minutes before the scheduled started.
• If you want to ask a question, just unmute yourself or type on the chat.
• We really like answering questions and interaction.
Email etiquette
• We love to help you, but read the course syllabus and Canvas
announcements before emailing us.
• We help you in thinking about the issues, but we are not a help line.
• Use the lectures, labs and workgroups to ask questions. It is faster!
, Social capital: Why does it matter?
Social capital helps Dutch Entrepreneurs adapting
the COVID-19 pandemic
The myth of individuals and the relational basis of success
• “Social”: resources are available in and through personal and business
networks. • “Capital”: it is productive, it creates value
• e.g., information, business opportunities, financial resources, power, emotional
support, trust, cooperation, and so on,
• Social capital is not a feature of an entity (attribute variable), but it is a
feature of a relationship (relational variable)
• Relational variables often have an equal/higher explanatory power than
attribute variables.
• “The friction is that society consists of a set of independent individuals,
each of whom acts to achieve goals that are independently arrived at,
and that the functioning of the social system consists of the combination
of these actions of independent individuals.” (James Coleman)
➢ Maintain social ties, relations and allows you to achieve some goals which you cannot do it
on your own
➢ Get support from others
➢ Social capital depends on relationships we have
➢ Social capital is productive and can achieve things
IORs and IONs: A relational view of organizations
• Social capital and IORs and IONs (Baker, 2000)
• Interorganizational networks are “relatively enduring transactions, flows,
and linkages that occur among and between an organization and one or
more organizations in its environment” (Oliver 1990: 241)
• Relationships and networks of organizations are about the exchange and
flow of resources between organizations.
• For an individual organization, relations and networks mean access to and
dependency on resources (e.g., information, ideas, reputation, trust).
• The notion of ‘social capital’ captures the resources available through
relationships and networks, i.e., relational view of organizations.
➢ Focus is on induring transactions: ongoing transaction
➢ Not a one off transaction
➢ Exchange of resources: financial, information, status
Lecture 1
➢ Relations organizations have with other entities
➢ Relationships matter
Understanding relations & networks of organizations
• What are IORs and IONs? Why are they important?
• Overview of ‘classic’ approaches and studies about IORs and IONs
• Social network analysis (SNA)
• Empirical analyses of causes and consequences of IORs and IONs
• Management of IORs and IONs
➢ Why is important: access to financial resources, entering new markets and more
➢ Tools to map the social relationships (between organizations)
➢ What are the consequences of networking? How can they help you?
➢ Focus on management styles
➢ To identify different types of networks: own network, national network of entrepreneurs,
alliance between two firms, great union
,Learning goals
After taking this course, you can expect to be able to:
1. Describe and explain the concept of social capital and apply the
theoretical ideas to empirical settings.
2. Know the basic concepts in social network analysis, explain their
meaning and apply them to analyze social network structures.
3. Describe, explain and compare determinants of IORs and IONs.
4. Describe, explain and differentiate consequences of relationships and
networks at the organizational level and be able to link consequences
to characteristics of IORs and IONs.
5. Describe, explain and apply concepts with regard to the management
of IORs and IONs.
6. Relate concepts of IORs and IONs to the field of organization studies.
7. Use and combine theoretical concepts in the area of IORs and IONs to
analyze and interpret specific organizational, societal or economic
problems.
8. Apply a number of analytical tools in the context of the study of interorganizational relations and
networks
,Rules of engagement
Classroom etiquette
• Arrive 5 minutes before the scheduled started.
• If you want to ask a question, just raise your hand.
• We really like answering questions and interaction!
ENGAGE students
• Join 5 minutes before the scheduled started.
• If you want to ask a question, just unmute yourself or type on the chat.
• We really like answering questions and interaction.
Email etiquette
• We love to help you, but read the course syllabus and Canvas
announcements before emailing us.
• We help you in thinking about the issues, but we are not a help line.
• Use the lectures, labs and workgroups to ask questions. It is faster!
, Social capital: Why does it matter?
Social capital helps Dutch Entrepreneurs adapting
the COVID-19 pandemic
The myth of individuals and the relational basis of success
• “Social”: resources are available in and through personal and business
networks. • “Capital”: it is productive, it creates value
• e.g., information, business opportunities, financial resources, power, emotional
support, trust, cooperation, and so on,
• Social capital is not a feature of an entity (attribute variable), but it is a
feature of a relationship (relational variable)
• Relational variables often have an equal/higher explanatory power than
attribute variables.
• “The friction is that society consists of a set of independent individuals,
each of whom acts to achieve goals that are independently arrived at,
and that the functioning of the social system consists of the combination
of these actions of independent individuals.” (James Coleman)
➢ Maintain social ties, relations and allows you to achieve some goals which you cannot do it
on your own
➢ Get support from others
➢ Social capital depends on relationships we have
➢ Social capital is productive and can achieve things
IORs and IONs: A relational view of organizations
• Social capital and IORs and IONs (Baker, 2000)
• Interorganizational networks are “relatively enduring transactions, flows,
and linkages that occur among and between an organization and one or
more organizations in its environment” (Oliver 1990: 241)
• Relationships and networks of organizations are about the exchange and
flow of resources between organizations.
• For an individual organization, relations and networks mean access to and
dependency on resources (e.g., information, ideas, reputation, trust).
• The notion of ‘social capital’ captures the resources available through
relationships and networks, i.e., relational view of organizations.
➢ Focus is on induring transactions: ongoing transaction
➢ Not a one off transaction
➢ Exchange of resources: financial, information, status
