Environmental Uncertainty and Inter-Organizational Relationship

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Other Title
  • 環境の不確実性と組織間関係
  • カンキョウ ノ フカクジツセイ ト ソシキ カン カンケイ

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The concept of “environmental uncertainty” has been widely employed to explain organizational behaviors in researches on inter-organizational relationships (IORs). There have been two inconsistent viewpoints: 1) in Transaction Cost Economics and Resource Dependence Theory, it has been argued that environmental uncertainty promotes a tight relationship; 2) in recent research on outsourcing, in contrast, it has been claimed that environmental uncertainty promotes a loose relationship. Although several studies have been conducted on this topic from a standpoint of the origin of environmental uncertainty, inconsistencies still remain. Therefore, this paper introduces various ways to deal with environmental uncertainty to reconcile the aforementioned contradiction. If it is possible for organizations to directly control environmental uncertainty, they can form IORs or strengthen existing relationships, whereas if it is challenging to do so, they will utilize IORs to improve their flexibility. A choice of strengthening or loosening IORs is still unsolved. The former will be selected, if there is a possibility of a new or stronger relationship. However, if an existing relationship includes a certain problem, increasing uncertainty for a focal organization, it can loosen or dissolve the relationship to resolve the problem. Whether it is possible or not to do so depends on the interconnectedness between an organizational environment and possible partners.

Journal

  • Organizational Science

    Organizational Science 48 (3), 18-28, 2015-03-20

    The Academic Association for Organizational Science

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