What is a network organisation? – Institute of Strategic Relationship Management

What is a
network
organisation?

The network organisation is a relationship-centered flexible and adaptive entity that transcends traditional boundaries

The network organisation develops deep collaborative relationships in a creative and consistent manner. Goals are achieved by extracting full value from the different partners.

Organisations are not like black boxes anymore but start to look more like glass houses. The boundaries between inside and outside information is blurred. As well as the boundaries between inside and outside. Today’s society is as much about cooperating as about competing. Connected through social networks, both online and offline, people and organisations are sharing information and resources. These networks do not only consist of organisations that are based on a typical kind of knowledge, but also include individuals with their personal knowledge and insights. Together they tap in collective knowledge and problem-solving abilities.

As keeping pace with change and innovation becomes increasingly challenging and the complexity within and around organisations is growing fast, having a solid relational network with relevant power and expertise helps to decrease complexity and move through challenges in more agile and effective ways. What organisations need, is to develop a professional relationship management to access these networks and tap into this collective knowledge by developing meaningful relationships with its stakeholders.

Source: Managing Authentic Relationships, Amsterdam University Press (2019)

Networking in the 17th century

A historic example of network organisations are the so-called militias. The cover of the book ‘Managing Authentic Relationships’ features a 17th century militia painting; Banquet of Guardsman from the District IV under Captain Jacob Backer and Lieutenant Jacob Rogh by Nicolas Pickenoy (1632, collection Amsterdam Museum).

In the 17th century, The Netherlands was a world empire and trade in for example wine or spices was managed by these militias. Militias were small closed networks. As an outsider it was hard to get in, but once inside the members of the network gave each other all kinds of favours. Cooperation between the members of these networks was based upon trust which made doing business much more flexible and resilient in this complex time; a world empire had to be managed without the internet and mobile telephones. Among the members of the militia there was little need for extensive oversight and written contracts.

The book about relationship management 'Managing Authentic Relationships '

Want to know more about
network organisations?

This book published by Amsterdam University Press is now available for sale online

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High trust value-networks

Future networks

The expectation of future networks is that they will be more closed and centered around a certain shared purpose in so-called ‘high trust value-networks’ creating both social and financial capital to support their cause. So even while the technological developments allow us to be in touch with an ever-wider range of people, the tendency is to use these new technological possibilities to create networks that are:

More personal.
More closed to outsiders.
Relatively small (to safeguard the self-generating power of the platforms).
Based on trust and reciprocity.

Source: Managing Authentic Relationships, Amsterdam University Press (2019)

Keep on reading: What is relationship management, what are relationships?

This post is also available in: Dutch