Inter-organizational collaborations are growing increasingly in the modern world as many businesses are now developing the spirit of having global diversity. According to Daft et al, (2014), having a globally diverse organizational environment enriches the quality of services as well as products of a given organization. This paper looks at the reasons why organizations decide to collaborate and further analyses the benefits of inter-organizational collaborations.
Daft et al, (2014), having a skilled workforce in an organization is one of the success signs in an organization. Skilled labor can easily be achieved through inter-organizational collaborations in which employees share ideas and experiences within the organization and as a result, getting competent and skilled labor which elevates the quality of services and products from an organization.
Organizations decide to collaborate after they get losses over a long time and disengage from a given partner who is likely to be the root course of the losses in the business. The collaboration, in this case, is to find recovery to the initial partnership but not necessarily the project (Gulati, et al, 2012. Apparently, before collaborating, the organization will have done thorough scrutiny on whom to collude with.
In some cases, other organizations may opt to form an inter-organizational collaboration to find a source of capital to invest (Gulati, et al, 2012). An enterprise may sign an agreement to collaborate with another so that they can be funded and elevate their business.
Inter-organizational collaborations have several benefits to the parties involved, and they include sharing of resources such as equipment and workforce, increased intelligence which enhances a competitive business, for example, marketing and product design. Besides, collaborations strengthen concentration in long-term competitiveness instead of short-term gains (Snow, 2015). Daft, et al, (2014), in any inter-organizational partnership, there is the likelihood of increased ability for the enterprise to produce differentiated consumer products and the benefit of market satisfaction for the range of characteristics that suit the consumer needs and segments.
In sum, inter-organizational collaboration is one of the developing trends in the world. Businesses develop to get the best interest as well as have additional advantages of business diversity which ensures high-quality services and products that suit the consumer needs.
References
Daft, R., Murphy, J. and Willmott, H., 2014. Organization theory and design. Cengage Learning.
Gulati, R., Puranam P. and Tushman, M. (2012) 'Meta-organization design: rethinking design in interorganisational and community contexts', Strategic Management Journal, 33(6), pp. 571-586.
Snow, C.C., 2015. Organizing in the age of competition, cooperation, and collaboration. Journal of leadership & organizational studies, 22(4), pp.433-442.
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