Toward a Theory of Inter-Organizational Relations

Social science research has been concerned primarily with intra-organizational phenomena. The twin problems of theory and methodology have impeded research on inter-organizational phenomena. Merton's concept of the “role-set” is the point of departure for an analogous concept designated as the “organization-set.” The unit of analysis is an organization or a class of organizations, referred to as the focal organization, and its interactions are mapped with the network of organizations in its environment, i.e., with elements of its organization-set. Seven dimensions of organization-sets are discussed: input vs. output organization-sets, comparative vs. normative reference organizations; size of the organization-set; concentration of input organizational resources; overlap in membership; overlap in goals and values; and boundary personnel. With the aid of these dimensions, hypotheses are formulated concerning the variable of autonomy in decision-making of the focal organization. Similar hypotheses—several of which are set forth—are needed for various inter-organizational processes, such as coordination, cooperation, competition, conflict, and amalgamation. Two methodological tools which may prove useful in empirical research on inter-organizational relations, graph theory and input-output analysis, are considered.