Causes of Failure in Network Organizations

Abstract

This article forecasts the problems that the emerging network form of organization faces as the result of managerial actions which inadvertently damage the operating capabilities of network organization. It examines the managerial mistakes that have plagued and continue to plague earlier functional, divisional, and matrix forms of organization, actions that are most likely to constrain the network structure. By analyzing predictable mistakes as they begin to occur, the authors hope to help managers prevent these problems rather than become victims of them.