10. Resource Strategy
• purchasing ownership
• signing long-term contracts
• joint ventures
• building relationships
in other ways
• interlocking directorships
• joining trade associations
• merging with other firms
• taking political actions
Less power
• controlling other firms
Much Power
11.
12. Introduction
• 8,613 stores and club locations in 14 countries
• Employ more than 2 million associates
• Serve more than 176 million customers a year
It’s the 8th
trade associate of China, preceding Russia, Australia and Canada
if wal-mart is an independent economy entity
<China business journal, 11/29,
2004>
13. The bargaining power come
from excellent strategies
Bargaining power
Lowest prices support high sales
Efficiency and scale
Highest
technology
Culture Relationship
Operation
management
Direct
purchasing
Work flowRFID
Information
POS
Sharing
information
15. Collaborative Networks
• Traditionally: Relationship between
organizations and their suppliers
has been an adversarial one.
• Now: Companies join together to become
more competitive and to share scarce
resources.
16. Why Collaboration?
• Major reasons are sharing risks when entering
new markets, mounting expensive new
programs and reducing costs, and enhancing
organizational profile in selected industries or
technologies.
• Interorganizational linkages provide a kind of
safety net that encourages long-term
investment and risk taking.
• Companies can achieve higher levels of
innovation and performance.
17. From Adversaries to Partners
Traditional Orientation: Adversarial New Orientation : Partnership
Low dependence
Suspicion, competition, arm’s length
Detailed performance measures, closely
monitored
Price, efficacy, own profits
Limited information and feedback
Legal resolution of conflict
Minimal involvement and up-front
investment, separate resources
Short-term contracts
Contract limiting the relationship
High dependence
Trust, addition of value to both sides,
high commitment
Loose performance measures, problems
discussed
Equity, fair dealing, both profit
Electronic linkages to share key
information, problem feedback, and
discussion
Mechanism for close coordination,
people on site
Involvement in partner’s product design
and production, shared resources
Long-term contracts
Business assistance beyond the contract
18. Population Ecology
• Introduce Population Ecology
• Organizational Form and Niche
• Process of Ecological Change
• Strategies for survival
19. Population Ecology
• Population ecology perspective focuses on
organizational diversity and adaptation within
a population of organizations.
• A population is a set of organizations engaged
in similar activities with similar patterns of
resource utilization and outcomes.
• Organizations within a population compete
for
similar resources or similar customers.
20. Organizational Form and Niche
• Organizational form is an organization’s
specific technology, structure, products,
goals,
and personnel, which can be selected or
rejected by the environment.
• Niche: A domain of unique environmental
resources and needs.
21. Process of Ecological Change
Variatio
n
Selection Retention
Large number
of variations
appear in the
population of
organizations
Some organizations
find a niche and
survive
A few organizations grow
large and become
institutionalized in the
environment
22. Strategies for survival
• Another principle that underlies the population
ecology model.
• Generalist and specialist strategies distinguish
organizational forms.
• Generalist: wide niche or domain, broad range
of products or services or serve a
broad market.
• Specialist: narrower range of goods or
services or serve a narrower
market.
23. Institutionalism
• Argument of Institutionalism
• Institutional Environment & Legitimacy
• Institutionalism & Organizational Design
• Institutional Similarity of Organizations
• Three mechanisms for Institutional Adaption
1. Mimetic Force
2. Coercive Force
3. Normative Force
24. Institutionalism view and
Oranizational Design
• Two essential dimensions of Organizations
－ Technical Dimension
－ Institutional Dimension
• Expectation from Environment
• Respense to the expectations
• Form similarity of Organizations in similar
population
25. Three mechanisms for Institutional
Adaption
• Mimetic Force
－ responses to uncertainty
• Coertive Force
－ Stem from political influence
• Normative Force
－ due to common training and
professionalism
26. Summary of Chapter 3
• Organizations are in Ecosystem
• Framework of interorganizational relationships
• Resource Dependence
– struggle for autonomy
• Collaborative Network
– thrive through collaboration
• Population Ecology
– diversity of organizations
• Institutionalism
– seek legitimacy from external Env.
