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Knowledge is critical for employee and firm success. We show that being perceived as prototypical organizational members is a source of prominence in knowledge exchange that operates beyond preexisting communication or affective relationships. Self-categorization processes produce – through depersonalization – a positive attitude among the members which represents an autonomous mechanism of social attraction for knowledge exchange, while social network mechanisms are triggered by interpersonal attraction. Our findings also suggest that including perceived members’ prototypicality can avoid a potentially spurious relationship in assessing the role played by social identity and categorization theory in explaining attitude and behaviors.

We study organizational vocabularies as complex social structures emerging from the association between organizational participants and words they use to describe and make sense of their experiences at work. Using data that we have collected on the association between managers in a multi-unit international company and words they use to describe their organizational units and the overall company, we examine the relational micro-mechanisms underlying the observed network structure of organizational vocabularies. We find that members of the same subsidiary tend to become more similar in terms of the words they use to describe their units. Members of the same subsidiary, however, do not use the same words to describe the corporate group. Consequently, the structure of organizational vocabularies tends to support consistent local interpretations, but reveals the presence of divergent meanings that organizational participants associate with the superordinate corporate group.

In this essay, we argue that understanding of meaning in relation to organizational networks warrants a more prominent place in organizational theorizing, because it fulfils a distinct role in the emergence and evolution of networks. Whereas prior studies have tended to address network structures or narrative structures, we suggest that organizational processes might be better understood when addressing the role of meaning and network structures simultaneously. We explain the implications of our argument in an online context, given the growing significance of digitally enabled networks on organizational sociality, and draw on examples in the context of organizational knowledge sharing to support our argument. We conclude by introducing a communication flow model to support the further development of research on organizational meaning networks.

Post-merger integration (PMI) success depends heavily on the social and cultural integration of the two legacy organizations. Given that organizational members work and exchange information through social relationships, social network analysis can serve as a useful tool to identify key actors, address areas of concern, and measure PMI success. However, few PMI studies have employed a social network perspective or social network analysis. In this chapter, the authors review the current literature on PMI and organizational change, including the few studies that use social networks approach. The authors also identify recent developments in social networks and organizational change research that can improve our understanding of PMI processes and propose promising avenues for future research. Further, the authors identify obstacles for social network research on PMI and provide practical advice for overcoming them.

In their contribution, Maja Apelt and Jana Hunnius ask how the physical proximity of organizations in a network impacts the creation of organizational boundaries. They assume that against a background of shared experiences, members of organizations can develop a community and cooperate on a basis of trust, but that this is not tantamount to organizational boundaries becoming permeable. Here, Apelt and Hunnius draw on Lefebvre’s (2006) concept of space and adapt this to the practice of organizations by drawing a distinction between three dimensions of spatial practice: spatial practice in the narrow sense, in other words, how the organizations structure the space; organizational practice or, in other words, which formal and informal structures they establish; and representative practice, that is, how they speak about space, legitimize their actions, and thus give them meaning. Empirically, the chapter is based on case studies at two German airports. Using the evidence provided by these studies, Apelt and Hunnius are able to show that the organizations develop different practices. While at one of the airports the community is strengthened, but the organizational boundaries are protected at the same time, the other airport establishes cooperative structures through which the organizational boundaries are weakened. The airport community plays a less important role here.

This chapter addresses the dynamics in inter-organizational relations. The authors probe the value networks so prevalent within contemporary ­manufacturing to put forward that their basic cooperation/competition duality manifests itself in practical terms as capability, appropriation, and governance paradoxes. The authors conducted a longitudinal ethnographic study aimed at capturing the process by which inter-organizational collabor­ation in ­manufacturing value networks is enacted. Our study finds that inter-organizational relations are “nested” in that a relationship plays out over an interpersonal network where the inter-organizational relationships are a framework for action, while simultaneously interpersonal interactions affect how the inter-organizational relationships take shape and evolve. Furthermore, we found that inter-organizational dynamics is essentially a stratified process. Solving particular and concrete problems at the surface level, with regard to specific collaboration issues between organizations, simultaneously shapes truces with regard to the underlying capability, appropriation, and governance paradoxes.

Purpose – Organizational and work studies consistently find an interrelationship between employees' relationships with coworkers to their morale, as indicated by their satisfaction and commitment levels. This same research shows organizational climate, as indicated by levels of trust and shared values and norms in the organization, strongly benefiting from satisfied and committed employees.Methodology/approach – This chapter concretizes workplace relationships using multipanel network data from 15 Indianapolis charter school teachers.Findings – With these data, network traits related to network cohesion, strong ties, and in-group identity identified as central processes undergirding affective relationships are directly tested. A feedback loop between organizational climate and employee morale, where both mutually reinforce the other, is also discussed.Implications – These findings show that affective relationships with coworkers improve employee morale and organizational climate.

Purpose – The purpose of this conceptual chapter is to discuss the limitations of the network organization in multinational corporations (MNCs). Since many IB/IM publications concentrate on the advantages of this organizational form, the focus of the chapter is on identifying the limitations that MNCs need to be aware of when they use network organizations.

Methodology – The analysis is based on a sound review of the literature that refers to the network organization in general and its application in MNCs.

Findings – The chapter shows that MNCs present a context that can aggravate the problems of a network organization. Four types of problems are identified: (1) knowledge transfer between MNCs’ subunits, (2) trust-building and corporate culture within MNCs, (3) subsidiary development and subsidiary managers’ stress, and (4) additional problems of a more general nature.

Practical implications – As a result of these problems, it is expected that the formal, hierarchical structure will remain an important organizational instrument for MNCs. The chapter specifies in which ways the formal organizational structure can help to reduce the limitations of the network organization. Finally, the chapter argues that, among the formal organizational models, the matrix structure should be considered more intensively in the future.

Originality/value of chapter – Since existing discussion of the network organization in MNCs tends to ignore the limitations and downsides of this organizational form, the chapter contributes to a more balanced understanding of the network organization.

As multinational corporations are becoming larger and more complex, it becomes increasingly difficult to balance between the need for overall standardization in the multinational corporation (MNC) and the need for local responsiveness. In order to allow subsidiaries to react on challenges and opportunities within their local markets, they should be granted with a certain level of decision-making autonomy. However, this freedom can facilitate a misalignment of activities among the headquarters and its subsidiaries.

This study suggests that subsidiaries should be granted with the autonomy to pursue own activities. There should, however, be limits to their independence, which should be aligned through a dialogue between the headquarters and the subsidiary. This study finds a positive correlation between strategic and operational autonomy and subsidiary performance when these are combined with a strong intra-organizational network relationship. Furthermore, the study argues that within operational autonomy it is important to distinguish between everyday activities that do not need approval from headquarters, and activities that should be decided in collaboration between the headquarters and the subsidiary. Subsidiaries that are operating in technological complex markets should be granted with the autonomy to take advantage of inter-organizational network relationships in order to exploit local knowledge and capabilities. However, this poses the risk of the subsidiaries losing connectivity to the MNC. In order to reduce this risk, the headquarters should combine such initiatives with a strong collaboration with its subsidiaries.

By establishing a strong intra-organizational network relationship, autonomy can have a positive effect on subsidiary performance.