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Mixed Mode Network Structures: The Strategic Use of Electronic Communication by Organizations

Author

Listed:
  • Christopher P. Holland

    (Manchester Business School, University of Manchester, Manchester M15 6PB United Kingdom)

  • A. Geoffrey Lockett

    (Leeds University Business School, University of Leeds, Leeds LS2 9JT United Kingdom)

Abstract

The impact of interorganizational systems (IOSs) on the structure of market networks is analyzed from a management perspective. A research framework is applied to various organizational settings, yielding a range of mixed mode forms in which elements of both market and hierarchy are evident. These forms are more complex than the simple network or hybrid structures postulated in the management and information systems literature. The framework represents a departure from electronic markets theory, questioning its basic predictions that as companies trade electronically there will be proportionately more markets than hierarchies. Instead, IOSs make possible relationships that combine market and hierarchy elements simultaneously. Although economic forces are driving the changes in network structure, economic variables are tempered by individual firm strategies reflecting investment, network structure and IOS choices. The implications for theory are that traditional analyses of network structures and competition in business markets do not describe or explain adequately the structure and dynamics of competition in an electronic trading environment. The implications for managers are that they should consider the effects of mixed mode network structures on their processes for forming and managing business relationships supported by IOSs. The contribution of the paper is to provide a more accurate model of competition in business markets by demonstrating that multiple forms of mixed mode network structures exist. The mixed mode proposition is illustrated with case data from a range of mixed mode network structures.

Suggested Citation

  • Christopher P. Holland & A. Geoffrey Lockett, 1997. "Mixed Mode Network Structures: The Strategic Use of Electronic Communication by Organizations," Organization Science, INFORMS, vol. 8(5), pages 475-488, October.
    • Handle: RePEc:inm:ororsc:v:8:y:1997:i:5:p:475-488
    DOI: 10.1287/orsc.8.5.475
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    Cited by:

    1. Nepelski, Daniel, 2009. "Value chain structure and �exible production technologies," MPRA Paper 26236, University Library of Munich, Germany.
    2. Ariela Caglio & Angelo Ditillo, 2012. "Interdependence and accounting information exchanges in inter-firm relationships," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 16(1), pages 57-80, February.
    3. Jörg Sydow & Arnold Windeler, 1998. "Organizing and Evaluating Interfirm Networks: A Structurationist Perspective on Network Processes and Effectiveness," Organization Science, INFORMS, vol. 9(3), pages 265-284, June.
    4. Paul S. Adler, 2001. "Market, Hierarchy, and Trust: The Knowledge Economy and the Future of Capitalism," Organization Science, INFORMS, vol. 12(2), pages 215-234, April.
    5. Ulrike Schultze & Wanda J. Orlikowski, 2004. "A Practice Perspective on Technology-Mediated Network Relations: The Use of Internet-Based Self-Serve Technologies," Information Systems Research, INFORMS, vol. 15(1), pages 87-106, March.
    6. Beunza, Daniel & Millo, Yuval, 2015. "Blended automation: integrating algorithms on the floor of the New York Stock Exchange," LSE Research Online Documents on Economics 118995, London School of Economics and Political Science, LSE Library.
    7. Qureshi, S. & Vogel, D.R., 2000. "Adaptivenes in Virtual Teams," ERIM Report Series Research in Management ERS-2000-20-LIS, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    8. Sajda Qureshi & Doug Vogel, 2001. "Adaptiveness in Virtual Teams: Organisational Challenges and Research Directions," Group Decision and Negotiation, Springer, vol. 10(1), pages 27-46, January.
    9. Beunza, Daniel & Millo, Yuval, 2015. "Blended automation: integrating algorithms on the floor of the New York Stock Exchange," LSE Research Online Documents on Economics 65090, London School of Economics and Political Science, LSE Library.
    10. Wagner, Stephan M. & Grosse-Ruyken, Pan Theo & Erhun, Feryal, 2018. "Determinants of sourcing flexibility and its impact on performance," International Journal of Production Economics, Elsevier, vol. 205(C), pages 329-341.
    11. Philippe Baumard, 2002. "Overcoming the Limits to Growth of Imaginary Organizations: Balancing Knowledge and Trust," Post-Print hal-03230794, HAL.
    12. Peruchi, Diego Falcão & de Jesus Pacheco, Diego Augusto & Todeschini, Bruna Villa & ten Caten, Carla Schwengber, 2022. "Moving towards digital platforms revolution? Antecedents, determinants and conceptual framework for offline B2B networks," Journal of Business Research, Elsevier, vol. 142(C), pages 344-363.
    13. Parent, Milena M. & Rouillard, Christian & Naraine, Michael L., 2017. "Network governance of a multi-level, multi-sectoral sport event: Differences in coordinating ties and actors," Sport Management Review, Elsevier, vol. 20(5), pages 497-509.
    14. Bocquet, Rachel & Brossard, Olivier & Sabatier, Mareva, 2007. "Complementarities in organizational design and the diffusion of information technologies: An empirical analysis," Research Policy, Elsevier, vol. 36(3), pages 367-386, April.

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