Network Organization as a Result of the Strategy of Forming Global Organizations: Organizational Structure Transformations

Network Organization as a Result of the Strategy of Forming Global Organizations: Organizational Structure Transformations

DOI: 10.4018/978-1-5225-5930-6.ch006

Abstract

In this chapter, the authors assume that if an organization implements a development strategy supported by the information communication technology (ICT) progress, its organizational structures are transformed. The implementation of such a strategy leads to the transformation of local organizations into global ones. Organizational structures, forming part of the infrastructure for the implemented strategy, change. As a consequence, the transition from hierarchical structures to network structures takes place. The transformation results in the rise of global organizations.
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Network Structure As A Method For Building A Global Organization

The research initiated by D. Chandler was continued by B.R. Scott (1973), R.P Rumelt (1974), P. Drucker (1977), R.E. Miles and C.C. Snow (1978), H. Mintzberg (1997), J.L. Boschken (1990) and many others. In this respect, B.R. Scott’s (1973) observations were interesting. He presented the following path of organizational structure evolution. The initial model was simple with slight formalization – the so-called one man show. The next stage was a bureaucratic model that was transformed all the way into a decentralized model. The analysis of related literature and own research on changes in organizational structures may help identify the stages of that evolution. Network organizations are an effect of such evolution of organizational structures.

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