Revisiting Network Organization in Practice: Network Organization or Dual Organizations

The theory of constructing a network organization for TNC’s R&D has become a common sense. However, there are still queries about the network organization, such as a network organization is only a “bureaucracy-lite” organization. From a multiple-case study, we find that there are six forms of networks in a network organization, which are internal market, IT networks, informal and social networks, global R&D project networks, global R&D specialists’ network, and alliances with external partners. Though the case TNCs are network-based, hierarchies remain to be an important part of the organizational designs, which we refer to duality of organization. In terms of duality of organization, there are three emerging patterns of duality, i.e. market-led, value-led and directed network organization. More important, we find that an organization is not only dual but also ternary since there is a mixture of hierarchy, market and network principles.