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Network Organizations through Communication Technology

Lee Sproull and Caryn A. Conley


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Network forms of organizations are characterized by reciprocal, lateral communication ties. They are often contrasted with hierarchies, which are vertically organized, and markets, which exhibit an atomistic structure of buyers and sellers. Powell (1990) and Nohria (1992) provide classic statements of the comparisons. Networked organizations are often viewed as more flexible and “intelligent” than hierarchies and markets. From the 1990s to the present, computer-mediated communication technology has been increasingly employed to extend the scale and scope of networked organizations in order to “connect multiple organizations and people into new entities that can create products or services” ( Contractor et al. 2006 , 682). Key attributes of computer-mediated communication technology for networked organizations are that they: (1) reduce physical, organizational, and social constraints on communication, and (2) create a digital record of communication for processing and preservation. Widespread use of these technologies increases reciprocal, lateral communication within organizations and between an organization and its external constituents – customers, suppliers, and partners. Both internally and externally, networked organizations are characterized by the increasing use of distributed work processes and knowledge-sharing processes (→  Communication Networks ; Technology and ... log in or subscribe to read full text

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