CONDITIONS OF ECONOMIC ACTIVITY CO-ORDINATION AS A FACTOR OF SHAPING ORGANIZATIONAL STRUCTURES

Abstract

The extended use of network organizational structures is often interpreted as a universal trend leading to exclusion of other organizational forms of business. In contrast to such assessment of organizational evolution prospects the article focuses on factors restricting the practical applicability of network structures. It was stated that transfer of a certain part of business processes to other companies can become a means of innovative competition. However, this type of competition requires a clear-cut co-ordination of business processes, which is not always attainable within the frames of the network structure. The author points out that the difficulty of co-ordination is especially great when innovation projects have a inter-sectoral character.

Keywords

• organizational structure
• strategy
• co-ordination mechanisms
• co-ordination costs
• innovation
• investment