Chapter 4

Name: _________________________, Roll No: ________________________
Unit —RELATIONSHIPS BETWEEN ORGANIZATIONS
MULTIPLE CHOICE
1. Relatively enduring resource transactions, flows, and linkages that occur among two or more
organizations are called:
a. the Intranet.
b. interorganizational relationships.
c. resource dependence.
d. institutional environment.
ANS: B PTS: 1
NAT: AACSB Reflective Thinking | AACSB Group Dynamics
2. A system formed by the interactions of a community of organizations and their environment is referred
to as a(n):
a. interorganizational relationship.
b. organizational ecosystem.
c. collaboration network.
d. institutional environment.
ANS: B PTS: 1
NAT: AACSB Reflective Thinking | AACSB Environmental Influence
3. In this new world, managers think about ____ rather than vertical structures.
a. profit-making
b. stakeholders
c. horizontal processes
d. competition
ANS: C PTS: 1
NAT: AACSB Reflective Thinking | AACSB Creation of Value
4. Which of the following is not part of the framework of interorganizational relationships?

a. Population ecology
b. Institutionalism
c. Collaborative network
d. Shared competition
ANS: D PTS: 1
5. The third perspective, which examines how new organizations fill niches left open by established
organizations and how a rich variety of new organizational forms benefits society, refers to
a. population ecology.
b. resource-dependence theory.
c. collaborative networks.
d. institutionalism.
ANS: A PTS: 1
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Name: _________________________, Roll No: ________________________
6. Which theory argues that organizations try to minimize their reliance on other organizations for the
supply of important resources and try to influence the environment to make resources available?
a. Interorganization theory
b. Environmental resource theory
c. Resource dependence theory
d. Economic supply theory
ANS: C PTS: 1 NAT: AACSB Analytic | AACSB Creation of Value
7. In resource dependence theory:

a. a small supplier should count on price competition for locking in accounts.
b. a small supplier should lock in a single large company for the bulk of its sales.
c. organizations will do whatever is needed to avoid dependence on the environment for
reducing uncertainty.
d. organizations will set up dependencies when they become more self-reliant.
ANS: C PTS: 1
8. Which of the following refers to managing the sequence of suppliers and purchasers, covering all
stages of processing from obtaining raw materials to distributing finished goods to consumers?
a. Operations management
b. Supply chain management
c. Resource management
d. Variation
ANS: B PTS: 1
NAT: AACSB Analytic | AACSB Operations Management
9. The ____ perspective is when companies join together to become more competitive and to share scarce
resources.
a. collaborative-network
b. resource-dependence
c. population-ecology
d. institutional
ANS: A PTS: 1
10. Major reasons for interorganizational collaboration include all of the following except:
a. sharing risks when entering new markets.
b. mounting expensive new programs and reducing costs.
c. enhancing organizational profile in selected industries.
d. interpersonal factors.
ANS: D PTS: 1 NAT: AACSB Analytic | AACSB Individual Dynamics
Name: _________________________, Roll No: ________________________
11.The traditional orientation to interorganizational relationships involved which of the following

characteristics?
a. Long-term contracts
b. Involved in partner's product design and production
c. Legal resolution of conflict
d. Electronic linkages to share key information
ANS: C PTS: 1
NAT: AACSB Reflective Thinking | AACSB Legal Responsibilities
12. The new orientation to interorganizational relationships involves which of the following
characteristics?
a. Equity and fair dealing
b. Contract limits the relationship
c. Minimal up front investment
d. Efficiency, own profits
ANS: A PTS: 1 NAT: AACSB Ethics | AACSB Ethical Responsibilities
13. The adversarial orientation to interorganizational relationships involved which of the following
characteristics?
a. Short-term contracts
b. Long-term contracts
c. High dependence
d. Business assistance beyond the contract
ANS: A PTS: 1
14. ____ focuses on organizational diversity and adaptation within a population of organizations.
a. Collaborative networks
b. Population ecology
c. Interorganizational relationships
d. Institutional perspective
ANS: B PTS: 1
NAT: AACSB Diversity | AACSB Environmental Influence
15. Established organizations have a difficult time adapting to a rapidly changing environment because:
a. they don't--that's not a true statement.
b. of heavy investment in plant and equipment and an established viewpoint of leadership
that has been successful.
c. when the environment changes, no one could predict that the changes will affect them.
Name: _________________________, Roll No: ________________________
d. leadership could change, but does not want to change.
ANS: B PTS: 1
16. A basic assumption of the population ecology model is that:

a. management competence is the biggest factor in the survival of organizations.
b. the environment determines which organizations survive or fail.
c. principles of evolution are not applicable to organizations because the fittest don't survive.
d. a community of organizations is a closed system.
ANS: B PTS: 1
17. An organizational niche:

a. once found, makes the process of retention occur.
b. is a person within an organization who is highly specialized.
c. is a domain of unique environmental resources and needs.
d. is found only in Japanese organizations.
ANS: C PTS: 1
18. ____ is an organization's specific technology, structure, products, goals, and personnel, which can be
selected or rejected by the environment.
a. Organizational form
b. Selection
c. Niche
d. Resource-dependence
ANS: A PTS: 1
19. All of the following except ____ are elements of the population ecology model of organizations.
a. retention
b. variation
c. legitimacy
d. selection
ANS: C PTS: 1
NAT: AACSB Analytic | AACSB Environmental Influence
20. Which of the following is true about the struggle for existence, a principle underlying the population
ecology model?
a. Specialists are able to reallocate resources internally to adapt to a changing environment,
whereas generalists are not.
b. Generalists are more competitive than specialists in the narrow area in which their
domains overlap.
c. The toy company Mattel, which markets a broad range of toys, is considered a specialist.
d. The struggle is most intense among new organizations, and survival frequencies are
related to environmental factors.
Name: _________________________, Roll No: ________________________
ANS: D PTS: 1
21. Organizations with a wide niche or domain, that is, those that offer a broad range of products and
services or that serve a broad market are:
a. specialists.
b. generalists.
c. niches.
d. legitimate.
ANS: B PTS: 1 NAT: AACSB Analytic | AACSB Creation of Value
22. The ____ is composed of norms and values from stakeholders.

a. institutional environment
b. population ecology
c. organizational ecosystem
d. institutional isomorphism
ANS: A PTS: 1
23. ____ is defined as the general perspective that an organization's actions are desirable, proper, and
appropriate within the environment's system of norms, values, and belief.
a. Generalist strategy
b. Legitimacy
c. Niche
d. Collaborative network
ANS: B PTS: 1
24. The institutional view argues that:

a. organizations do not have legitimacy from their stakeholders.
b. a market-based economy was not constructed in the Soviet Union because such
institutions were corrupt.
c. when an organizational field is just getting started, diversity is the norm, but later there is a
push for similarity.
d. organizations have two essential dimensions--institutional and public.
ANS: C PTS: 1
25. Which of the following from the institutional view is true about the two essential dimensions of
organization?
a. The institutional structure is that part of the organization most visible to the outside public.
b. The public dimension is governed by norms of efficiency.
c. The technical dimension will reflect environmental expectations rather than the demand of
work activities.
d. The formal structure and design process is rational with respect to workflow and products.
ANS: A PTS: 1 NAT: AACSB Analytic | AACSB Creation of Value
Name: _________________________, Roll No: ________________________
26. Institutional similarity would include the perspective that:

a. common structures emerge among organizations in the same field.
b. common training of professionals (managers) results in common analytic processes among
organizations in the same field.
c. divergent structures are driven among organizations in the same field for the sake of
diversity.
d. divergent analytic processes among organizations in the same field emerge because of
managers' training in widely varying functional areas and varying degree programs.
ANS: A PTS: 1
27. Mimetic forces would include the perspective that:

a. because of heavy interorganizational linkages, organizations are forced to behave similarly
in order to maintain productive relationships.
b. political and governmental processes, to which organizations are subjected, force
organizations to become similar.
c. in the face of uncertainty, organizations copy or model each other.
d. diversity is maintained in order for organizations to find and maintain a marketing niche.
ANS: C PTS: 1
28. An example of mimetic force is:

a. reengineering.
b. accounting standards.
c. pollution controls.
d. consultant training.
ANS: A PTS: 1 NAT: AACSB Analytic | AACSB Creation of Value
29. An event for coercive force is:

a. professionalism.
b. innovation.
c. environmental visibility.
d. political law.
ANS: D PTS: 1
NAT: AACSB Reflective Thinking | AACSB Legal Responsibilities
30. Benchmarking is:

a. a mimetic process.
b. a coercive process.
c. inappropriate, because it results in copyright infringement.
d. required by law.
ANS: A PTS: 1
31. With coercive forces, the reason for adaptation is:
Name: _________________________, Roll No: ________________________
a. dependence.
b. duty.
c. uncertainty.
d. professionalism.
ANS: A PTS: 1
32. The social basis for normative forces is:

a. legal.
b. culture.
c. moral.
d. diversity.
ANS: C PTS: 1 NAT: AACSB Ethics | AACSB Ethical Responsibilities
33. Coercive forces result in:

a. efficiency.
b. professionalism.
c. effectiveness.
d. the appearance of legitimacy.
ANS: D PTS: 1
34. ____ are pressures to change to achieve standards of professionalism and to adopt techniques that are
considered by the professional community to be up to date and effective.
a. Coercive forces
b. Mimetic forces
c. Normative forces
d. Legitimacy forces
ANS: C PTS: 1
35. A company may use any or all of the mechanisms of mimetic, coercive, or normative forces to change
itself for greater ____ in the institutional environment.
a. profit
b. market share
c. resource dependency
d. legitimacy
ANS: D PTS: 1
36. A similar concept to the organizational ecosystem is the _____ approach, in which businesses,
governments, and nonprofit organizations join together across sectors and industries to tackle huge,
compelling problems of mutual interest.
a. specialist
b. legitimacy
c. generalist
d. megacommunity
Name: _________________________, Roll No: ________________________
ANS: D PTS: 1
37. Which of the following is not one of the frameworks of interorganizational relationships?
a. Institutionalism
b. Resource dependence
c. Legitimacy
d. Collaborative network
ANS: C PTS: 1 NAT: AACSB Analytic | AACSB Creation of Value
38. Geisinger Health System, Kaiser Permanente, Mayo Clinic, Intermountain Healthcare, and Group
Health Cooperative believe that using and sharing digitized patient records can help healthcare
providers make smarter decisions and provide better care, such as referring a patient to a specialist in
another system. This is an example of which of the following?
a. A collaborative-network
b. Resource dependence
c. Normative forces
d. Retention
ANS: A PTS: 1
39. The adversarial orientation to interorganizational relationships involved which of the following
characteristics?
a. Limited information and feedback
b. Trust
c. Loose performance measures
d. Long-term contracts
ANS: A PTS: 1
40. In the population-ecology model of organizations, _____ means the appearance of new, diverse forms
in a population of organizations.
a. Retention
b. Selection
c. Variation
d. Legitimacy
ANS: C PTS: 1
TRUE/FALSE
1. The prevailing philosophy is that organizations consider themselves autonomous and separate, trying
to outdo other companies so that they can grow and prosper.
ANS: F PTS: 1 NAT: AACSB Analytic | AACSB Creation of Value
Name: _________________________, Roll No: ________________________
2. Within business ecosystems, managers learn to move beyond traditional responsibilities of corporate
strategy and designing hierarchical structures and control systems.
ANS: T PTS: 1 NAT: AACSB Reflective Thinking | AACSB Strategy
3. In the changing role of management, managers think about vertical processes rather than horizontal
structures.
ANS: F PTS: 1 NAT: AACSB Analytic | AACSB Leadership Principles
4. The four perspectives of a framework of interorganizational relationships include resource

dependency, population ecology, collaborative network, and reengineering.
5. In population ecology theory, large dependent companies have power over small suppliers.
ANS: F PTS: 1
6. The resource dependence perspective argues that while organizations may attempt to control
environmental resources, they also try to maintain their independence.
ANS: T PTS: 1
7. Resource-dependence management refers to managing the sequence of suppliers and purchasers.
ANS: F PTS: 1
NAT: AACSB Reflective Thinking | AACSB Operations Management
8. Collaboration is being practiced as companies join together to become more competitive as a block.
ANS: T PTS: 1
9. The major reasons for collaboration are sharing risks when entering new markets, mounting expensive
new programs and reducing costs, and enhancing organizational profile in selected industries or
technologies.
ANS: T PTS: 1 NAT: AACSB Analytic | AACSB Creation of Value
10. Many companies are changing from a partnership orientation mindset to a traditional adversarial.
ANS: F PTS: 1 NAT: AACSB Analytic | AACSB Group Dynamics
Name: _________________________, Roll No: ________________________
11. In the positive view of partnerships, dependence on another company is seen to increase risk rather
than reducing it.
12. The population ecology focuses on organizational diversity and adaptation within a population of
organizations.
ANS: T PTS: 1
13. The population ecology perspective claims that large companies cannot adapt to meet a changing
environment, so new companies emerge with the appropriate form and skills to serve new needs.
ANS: T PTS: 1
14. The population-ecology model is developed from theories of natural selection in biology, and the terms
retention and variation are used to refer to the underlying behavioral processes.
15. A niche is a domain of unique environmental resources and needs.
ANS: T PTS: 1
16. Variation, formation, and selection are the stages in the process of change in the environment.
ANS: F PTS: 1
17. The population ecology perspective tells us that even institutionalized organizations like McDonald's
are not permanent in the long run.
ANS: T PTS: 1
18. Given their flexibility, specialists are able to reallocate resources internally to adapt to a changing
environment whereas generalists are not.
ANS: F PTS: 1
19. In the population ecology perspective, generalist and specialist strategies distinguish organizational
forms in the struggle for survival.
Name: _________________________, Roll No: ________________________
ANS: T PTS: 1 NAT: AACSB Reflective Thinking | AACSB Strategy
20. Generalists are generally more competitive than specialists in the narrow area in which their domains
overlap.
21. Because of the diversity of products, services, and customers, generalists are able to reallocate
resources internally to adapt to a changing environment whereas specialists are not.
ANS: T PTS: 1
22. The institutional perspective explains why organizational diversity continuously increases with the
appearance of new organizations filling niches left open by established companies.
ANS: F PTS: 1
23. Legitimacy is defined as the general perception that an organization's actions are desirable, proper, and
appropriate within the environment's system of norms, values, and beliefs.
ANS: T PTS: 1
24. Mimetic forces refer to the similarity that is brought between organizations from environmental
influences such as governmental laws and legislative requirements.
ANS: F PTS: 1
25. Institutional similarity is the emergence of a common structure and approach among organizations in
the same field.
ANS: T PTS: 1
26. Coercive forces mean that organizations change to achieve standards of professionalism.
27. Normative forces are pressures to change to achieve standards of professionalism and to adopt
techniques that are considered by the professional community to be up to date and effective.
ANS: T PTS: 1
Name: _________________________, Roll No: ________________________
28. The outcome of mechanisms of mimetic, coercive, or normative forces is that organizations become
more heterogeneous to reflect the natural diversity among managers and environments.
ANS: F PTS: 1
29. Organizations around the world are embedded in complex networks of confusing relationships--
collaborating in some markets, competing fiercely in others.
ANS: T PTS: 1
30. Frenemies refers to the trend toward companies being both friends and enemies, collaborators and
competitors.
ANS: T PTS: 1
31. Most collaborative managers are skilled in handling operations roles, which have traditional vertical
authority and are accountable for business results primarily through direct control over people and
resources.
ANS: F PTS: 1 NAT: AACSB Reflective Thinking | AACSB Strategy
32. In resource-dependence theory, large, independent companies have power over small suppliers.
ANS: T PTS: 1 NAT: AACSB Analytic | AACSB Creation of Value
33. North American companies have long traditions of corporate clans or industrial groups that collaborate
and assist each other while both Japanese and Korean companies have traditionally worked alone.
ANS: F PTS: 1
34. In the population-ecology model of organizations, selection refers to the preservation and
institutionalization of selected organizational forms.
ANS: F PTS: 1
Name: _________________________, Roll No: ________________________
35. A principle that underlies the population ecology model is the struggle for existence, or competition.
ANS: T PTS: 1
ESSAY
1. What is an "organizational ecosystem?" How does this concept impact the changing role of
management?
ANS:
Answer not provided.
PTS: 1 NAT: AACSB Analytic | AACSB Environmental Influence
2. Why is the following question asked in the context of a discussion on interorganizational relationships:
"Is competition dead?"
ANS:
PTS: 1 NAT: AACSB Analytic | AACSB Creation of Value
3. How have managers’ viewpoints and focuses changed in this new world?
ANS:
PTS: 1 NAT: AACSB Analytic | AACSB Leadership Principles
4. Describe the framework of interorganizational relationships, using the following two questions to help
guide your answer: If organizational relationships are competitive, under what perspectives are the
organization types similar versus dissimilar? If organizational relationships are cooperative, under
what perspectives are the organization types similar versus dissimilar?
ANS:
5. What kind of education and training do you think would help prepare you for the reality of being a
manager who has to manage a set of interorganizational relationships beyond managing internal affairs
of your own company?
ANS:
Name: _________________________, Roll No: ________________________
Name: _________________________, Roll No: ________________________
6. Define supply chain management. What role does the supply chain play in organizations?
ANS:
PTS: 1 NAT: AACSB Reflective Thinking | AACSB Operations Management
7. We have seen, in this country, a history of powerful organizations exploiting the dependence of small
companies. Would you anticipate an end to this phenomenon? Why or why not?
ANS:
8. When organizations become aware of resource dependence and begin to develop strategies to reduce
their dependence on the environment, what alternatives would be considered? Explain at least two
different approaches.
ANS:
9. Develop your own explanation/theory as to why organizations today find collaboration as important as
competition, and why they have a tendency to take on similar characteristics. Would not collaboration
be enhanced just as easily with organizations that had different characteristics?
ANS:
10. Why is the mindset in U.S. companies changing away from a traditional adversarial relationship with
other companies?
ANS:
11. Discuss how the adversarial versus partnership orientations work among students in class. What
carryover from the classroom settings at your university will help or hinder interorganizational
relationships you may be managing in the future?
ANS:
Name: _________________________, Roll No: ________________________
Name: _________________________, Roll No: ________________________
12. List the characteristics of the traditional theory of organizational relationships.
ANS:
13. When the computer industry first reached the everyday consumer, Commodore computers were
extremely popular, and were the first computer ever purchased by many people. As other personal
computers such as Apple and IBM entered the marketplace with word processing, data base programs,
and a few games, Commodore kept its focus on games. From the perspective of the population
ecology, explain what happened to these organizations over the long run and why.
ANS:
14. Identify a firm in each stage of the process of ecological change: variation, selection, and retention.
Explain why you classified each firm as you did.
ANS:
15. Describe the different strategies when organizations are struggling for existence.
ANS:
PTS: 1 NAT: AACSB Reflective Thinking | AACSB Strategy
16. Does the desire for legitimacy result in organizations being more similar or being more different? Take
a position, and defend your position.
ANS:
17. Are the use of management "fads" any different, in your opinion, from the pursuit of legitimacy
through mimetic processes? Discuss your view.
ANS:
Name: _________________________, Roll No: ________________________
Name: _________________________, Roll No: ________________________
18. We studied the notion of institutional similarity and the reasons for it. Develop your own theory about
the effects of the tendency for institutional similarity on business success.
ANS:
19. Compare and contrast three types of institutional similarity.
ANS:
20. Explain the various processes by which institutional similarity occurs. Give an example of each.
ANS:
21. Compare and contrast coercive forces and normative forces.
ANS:

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Name: _________________________, Roll No: ________________________

Unit —RELATIONSHIPS BETWEEN ORGANIZATIONS

4. Which of the following is not part of the framework of interorganizational relationships?

7. In resource dependence theory:

11.The traditional orientation to interorganizational relationships involved which of the following

16. A basic assumption of the population ecology model is that:

17. An organizational niche:

22. The ____ is composed of norms and values from stakeholders.

24. The institutional view argues that:

26. Institutional similarity would include the perspective that:

27. Mimetic forces would include the perspective that:

28. An example of mimetic force is:

29. An event for coercive force is:

30. Benchmarking is:

31. With coercive forces, the reason for adaptation is:

32. The social basis for normative forces is:

33. Coercive forces result in:

ANS: F PTS: 1 NAT: AACSB Analytic | AACSB Creation of Value

ANS: T PTS: 1 NAT: AACSB Reflective Thinking | AACSB Strategy

ANS: F PTS: 1 NAT: AACSB Analytic | AACSB Leadership Principles

4. The four perspectives of a framework of interorganizational relationships include resource

ANS: F PTS: 1 NAT: AACSB Analytic | AACSB Creation of Value

7. Resource-dependence management refers to managing the sequence of suppliers and purchasers.

ANS: T PTS: 1 NAT: AACSB Analytic | AACSB Creation of Value

ANS: F PTS: 1 NAT: AACSB Analytic | AACSB Group Dynamics

ANS: F PTS: 1 NAT: AACSB Analytic | AACSB Creation of Value

ANS: F PTS: 1 NAT: AACSB Analytic | AACSB Creation of Value

15. A niche is a domain of unique environmental resources and needs.

ANS: F PTS: 1 NAT: AACSB Analytic | AACSB Creation of Value

ANS: F PTS: 1 NAT: AACSB Analytic | AACSB Creation of Value

ANS: F PTS: 1 NAT: AACSB Reflective Thinking | AACSB Strategy

ANS: T PTS: 1 NAT: AACSB Analytic | AACSB Creation of Value

PTS: 1 NAT: AACSB Analytic | AACSB Environmental Influence

PTS: 1 NAT: AACSB Analytic | AACSB Creation of Value

PTS: 1 NAT: AACSB Analytic | AACSB Leadership Principles

PTS: 1 NAT: AACSB Analytic | AACSB Creation of Value

PTS: 1 NAT: AACSB Analytic | AACSB Creation of Value

PTS: 1 NAT: AACSB Reflective Thinking | AACSB Operations Management

PTS: 1 NAT: AACSB Analytic | AACSB Creation of Value

PTS: 1 NAT: AACSB Analytic | AACSB Environmental Influence

PTS: 1 NAT: AACSB Analytic | AACSB Creation of Value

PTS: 1 NAT: AACSB Analytic | AACSB Creation of Value

PTS: 1 NAT: AACSB Analytic | AACSB Creation of Value

12. List the characteristics of the traditional theory of organizational relationships.

PTS: 1 NAT: AACSB Analytic | AACSB Creation of Value

PTS: 1 NAT: AACSB Analytic | AACSB Environmental Influence

PTS: 1 NAT: AACSB Analytic | AACSB Environmental Influence

PTS: 1 NAT: AACSB Reflective Thinking | AACSB Strategy

PTS: 1 NAT: AACSB Analytic | AACSB Creation of Value

PTS: 1 NAT: AACSB Analytic | AACSB Creation of Value

PTS: 1 NAT: AACSB Analytic | AACSB Creation of Value

19. Compare and contrast three types of institutional similarity.

PTS: 1 NAT: AACSB Analytic | AACSB Creation of Value

PTS: 1 NAT: AACSB Analytic | AACSB Creation of Value

21. Compare and contrast coercive forces and normative forces.

PTS: 1 NAT: AACSB Analytic | AACSB Creation of Value

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