A management framework for organisational networks: a case study

Abstract

PurposeThe purpose of this paper is to draw on the experiences of a real company to develop a framework of management processes for an organizational network model that has enabled a network of enterprises to develop new levels of organizational flexibility, particularly with regards to improving the network's capacity to innovate.Design/methodology/approachA longitudinal case study of an Italian enterprise network forms the basis of the analysis described in this paper.FindingsThe key operational and organizational activities of the principal agent in a novel organizational network model known as the Virtual Development Office (VDO) are identified and discussed.Research limitations/implicationsThe (VDO) concept is identified as a realistic and practical means of leveraging the competences of an enterprise network to achieve competitive advantage. However, more empirical data are required before the concepts described herein can be generalised more widely.Practical implicationsThe small to medium‐sized enterprise (SME) is a major contributor to the European economy. However, the constraints that these organizations operate under mean that they are often at a competitive disadvantage. The organizational network model outlined in this paper can assist in leveraging their capacity to innovate.Originality/valueResearch in collaborative networks has become increasingly important given the significant impact it can have on competitiveness. This paper demonstrates a framework of management processes for a novel organizational network model that facilitates collaboration amongst networks of SMEs.