Network Organization

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A graphical representation of a network "organization"Definition Network Organization? Meaning.

Nowadays, knowledge workers create, share and leverage information through collaborating with colleagues in various flexible, international, multi-disciplinary and cross-functional teams. Organizations are increasingly viewed as part of these inter-organizational relationships.


The current business climate is characterized by profound and frequent changes and increasing complexity due to globalization, sudden increases in information and communication capabilities, and other forces.


Rapid developments of ICT are enabling, supporting and even driving the sudden change from the industrial to the information age and network economy.


A Network Organization is a pattern of social relations over a set of persons, positions, groups, or organizations. This type of "organization" is well adapted to unstable conditions, when problems and requirements for action arise which cannot be broken down and distributed among specialists' roles within a hierarchy.

Interactions run laterally as much as vertically. Communication between people of different ranks tends to resemble lateral consultation rather than vertical command and omniscience can no longer be imputed to the head of the concern. Such "organizations" are using social mechanisms for coordination and control.

Compared to the vertically integrated company, a networked company is characterized by greater Organizational Agility and adaptability. It has more flexible relations with external third parties such as customers, suppliers, outsourcing firms, and regulators.


100% networked organizations are still relatively rare. Especially for large organizations. But in many if not all business and public organizations we can see Hybrid Forms of Organizations being deployed with both mechanistic and organic elements.


Also called: Virtual Business / Organization or Network-centric Organization.

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🔥 NEW Useful Professional Networking???
Despite the fact that social networking is all around, many business people find networking activities distasteful and a (...)
The 6 Benefits of Networking for Organizations
Networking can yield a number of benefits for individuals, but also for organizations. The Hunter Institute mentions 6 a (...)
Benefits of Social Media from a Networking Perspective
A theoretical foundation that can explain the nature and impact of social media is the idea of “networking capability”. (...)
Entry Barriers, Mobility Barriers and Step-out Barriers
What are the entry-, mobility, and step-out barriers in networks? (...)
What is Network Governance? Cases
I am conducting a study on "network governance" and I would like to analyze some case studies. I will be very grateful i (...)
Organizations and Inter Organizational Relationships
Organizations nowadays are often portrayed as part of inter-organizational relationships. Resource dependence theory, so (...)
Demands on Network Organisation
Several things must occur for a network organization to be successful:
- the firm must choose the right specialty
Complexity of Network Organizations
What's causing the complexity of the network organization? (...)

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The Importance of Customer Differences in Markets with Network Effects: the Limits of Scale

Network Effect, Network Strategy, First Mover Advantage, Second-mover Strategy, Customer Intimacy, Market Segmentation
The network effect (Metcalfe's Law) is the phenomenon that the value of a product or service increases (exponentially) w (...)
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Introduction to Network Organizations

Organizational Forms, Network Organization, Virtual Organization, Communities of Practice
Presentation about Network Organizations. The presentations explains its importance, its supporting factors and compares (...)

Types and Functions of Organizational Communication

Communication Functions, Communication Structures, Network Organization, Communication Networks
Presentation about Organizational Communication Networks and related concepts, including the following sections: 1. Fun (...)

Social Networks and Ethical Issues

Social Networking, Social Media, Ethics
This presentation provides information about social networking, the virtual world and the ethical issues that accompany (...)

Kotter on the Network Organization

Network Organization
Because of globalization and new technologies, the speed and amount of changes in our world have moved up and the tradit (...)

Brief Overview of the Informal Organization

Informal Organization
Presentation that elaborates on the concept of informal organization. The presentation includes the following sections: (...)

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Compare with: Chaordic Organization  |  Organization Chart  |  Hierarchical Organization  |  Matrix Organization  |  Relational Capital

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