Modernization and the Logic of Interorganizational Networks

Abstract

In this paper an attempt is made to widen the perspective under which interorganizational etworks are generally seen. It is argued that both in the economy and in policy making, network phenomena are in fact becoming more prominent. This is linked to functional differentiation, a core process of societal modernization, which implies the existence of partly autonomous societal subsystems. Their emergence is closely connected with the ascen-dance of formal organizations, which in turn enjoy a certain measure of autonomy. In this structural context, interorganizational etwork following a logic of negotiation, which extends to "constitutional " issues can provide a solution to coordination problems typical of modem societies. The Ascendance of Networks The world is composed of networks, not groups, says Barry Wel lman (1988: 31). Our discipline, the sociology of organizations, eems to have discovered this fact roughly 20 years ago, when "interorganizational re a-tions " became an important new topic. 1 The new perspective called attention to the fact that the environment of organizations i filled with other or-ganizations, o that for many of them, other organizations (and not amor-phous publics) are the most relevant interact ion partners. 2 So the organization became the "focal organization, " and research on interor-ganizational relations developed. For some time, personal interl inkages--Renate Mayntz, Ph.D., is director of the Max Planck Institute, KSln, Germany. Her research interests include sociological macro-theory, comparative social and political research, organizational nd administrative sociology, and sociology of