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Formal structures and informal networks: Structural analysis in organizations

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  • Rank, Olaf N.

Abstract

Summary Adopting a network-analytical approach this study tests predictions regarding the coexistence of formal organizational structures and informal networks. Data have been collected on the cooperative relationships within the strategic decision process at the two top-management levels in two German multinational corporations. The results from applying QAP and ANOVA analytical techniques reveal--against widespread assumptions--that managers participating in strategy-making not only use informal cooperation ties in addition to their formally designed relationships, but they also disregard their formal work contacts to a surprising extent. Moreover, significant differences can be found between horizontal and vertical relationships: (1) formal horizontal ties are much more likely to be disregarded than formal vertical ties, and (2) a significantly greater number of informal ties are built and maintained in a vertical rather than a horizontal direction. The results contribute to the existing literature in this field by offering deeper insights into the interdependencies between formal structures and informal networks.

Suggested Citation

  • Rank, Olaf N., 2008. "Formal structures and informal networks: Structural analysis in organizations," Scandinavian Journal of Management, Elsevier, vol. 24(2), pages 145-161, June.
    • Handle: RePEc:eee:scaman:v:24:y:2008:i:2:p:145-161
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    Cited by:

    1. Kosztyán, Zsolt T. & Katona, Attila I. & Kuppens, Kurt & Kisgyörgy-Pál, Mária & Nachbagauer, Andreas & Csizmadia, Tibor, 2022. "Exploring the structures and design effects of EU-funded R&D&I project portfolios," Technological Forecasting and Social Change, Elsevier, vol. 180(C).
    2. Marcel Maurer & Norbert Bach & Simon Oertel, 2023. "Changes in formal structure towards self-managing organization and their effects on the intra-organizational communication network," Journal of Organization Design, Springer;Organizational Design Community, vol. 12(3), pages 83-98, September.
    3. Maria Ripollés & Andreu Blesa, 0. "Entry mode choices in the international new ventures context. A study from different theoretical perspectives," International Entrepreneurship and Management Journal, Springer, vol. 0, pages 1-21.
    4. Guo, Ying & Cao, Lingyan & Song, Ying & Wang, Yan & Li, Yongkui, 2022. "Understanding the formation of City-HSR network: A case study of Yangtze River Delta, China," Transport Policy, Elsevier, vol. 116(C), pages 315-326.
    5. Kai Riemer & Stefan Stieglitz & Christian Meske, 2015. "From Top to Bottom," Business & Information Systems Engineering: The International Journal of WIRTSCHAFTSINFORMATIK, Springer;Gesellschaft für Informatik e.V. (GI), vol. 57(3), pages 197-212, June.
    6. Inyoung Park & Jieon Lee & Jungwoo Nam & Yuri Jo & Daeho Lee, 2022. "Which networking strategy improves ICT startup companies' technical efficiency?," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(6), pages 2434-2443, September.
    7. Song, Xiao & Shi, Wen & Ma, Yaofei & Yang, Chen, 2015. "Impact of informal networks on opinion dynamics in hierarchically formal organization," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 436(C), pages 916-924.
    8. Maria Ripollés & Andreu Blesa, 2020. "And yet, non-equity cooperative entries do improve international performance: uncovering the role of networks’ social capital," Small Business Economics, Springer, vol. 55(3), pages 761-776, October.
    9. J. Travis Bland & Adam M. Williams, 2019. "Collaborative Ties Within: Public Organizations and the Latent Capacity for Advice Network Formation," Public Organization Review, Springer, vol. 19(3), pages 367-386, September.
    10. Schwartz, Michael & Hornych, Christoph, 2010. "Informal networking: An overview of the literature and an agenda for future research," Jena Contributions to Economic Research 2010,1, Ernst-Abbe-Hochschule Jena – University of Applied Sciences, Department of Business Administration.
    11. Jayaraman, Aishwarya & Rajan, Sudhir Chella & Ramu, Palaniappan, 2024. "Food system resilience: Unraveling power relations and the Matthew effect in farmers networks," Technological Forecasting and Social Change, Elsevier, vol. 200(C).
    12. Claussen, Jörg & Grohsjean, Thorsten & Luger, Johannes & Probst, Gilbert, 2014. "Talent management and career development: What it takes to get promoted," Journal of World Business, Elsevier, vol. 49(2), pages 236-244.
    13. Christian Resch, 2017. "Networks in Assembly: Investigating Social Factors in Robotic Automation," IET Working Papers Series 01/2017, Universidade Nova de Lisboa, IET/CICS.NOVA-Interdisciplinary Centre on Social Sciences, Faculty of Science and Technology.
    14. Maria Ripollés & Andreu Blesa, 2017. "Entry mode choices in the international new ventures context. A study from different theoretical perspectives," International Entrepreneurship and Management Journal, Springer, vol. 13(2), pages 465-485, June.

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