Interorganizational Networks: A Case Study of Industrial Location

Abstract

The recent interest in the literature on interorganizational relations is briefly reviewed and the so-called 'political economy' perspective is suggested as a helpful approach in conceptualizing the environments of organizations as a network in continuous negotia tions. A case study is presented of the negotiations between the British Government and the Ford Motor Company over the siting of a major engine plant in South Wales. The case study highlights the importance of choice and manipulation of environments; the extent to which organizations can control their environments; the importance of under standing organizational power; and the market position of the organization.