Inter-firm Relations

Co evolutionary in employees within a single organization can exist by each adapting changes in the other in order to maintain a balance among them and keep the system working effectively as they share among themselves at least a part of the following three elements in frequent and dense information; interaction, interpretation code (how should one interpret information?), and information carrier (what media carry the information?) leading to knowledge creation which can be interpreted as an act of innovation in contrast to routine work because within human beings, and within a variety of relationships that they form, reside inherent capabilities for spontaneous self-creation.

This will allow new relationships to emerge with no dedicated slant toward either exploitation or inequalities instability (Newell & Herbert 1972).

Competence in managing single organization relations is becoming increasingly important, going far beyond the simple pursuit of flexibility or cost reduction due to higher awareness of the need to externalize problems arising from market sources (e.g., the volatility and fragmentation of the markets) and technological sources (e.g., hyper complexity of new technologies) so as to enhance resilience to fluctuations and upgrade their own capacity as survival mechanism (Kauffman1993).

Instead of familiar business organizations separated by ownership and functional attributes, it will lead to spontaneous decision-making through constituents’ real-time interaction, innovation, and knowledge creation that emerges from a chain of self-organizing activities such as identifying and resolving localized problems to the construction of a global system out of local communication and thus recording a history of interactions skills shared among constituent members in the process of its implementation, the accumulation of which contributes to cultivating long-term organizational memory and organizational knowledge. (Ikujiro, Toshihiro, 2001). This new type of strategy would probably be applicable to a broad learning, be promoted by the cultivation of rich relational skills and made possible by frequent direct communication.

References

Ikujiro Nonaka, Toshihiro Nishiguchi, eds. (2001): Knowledge Emergence: Social,         Technical, and Evolutionary Dimensions of Knowledge Creation. Oxford University Press

Kauffman, Stuart A. (1993). The Origins of Order: Self-organization and Selection in    Evolution.New York: Oxford University Press.

Newell, Allen, and Herbert A. Simon. (1972): Human Problem Solving. Englewood       Cliffs,N.J.: Prentice-Hall.