Markets as Networks


Actual firm relationships must be seen on a spectrum between outright competition at one end and collusion at the other. At the very least, such a self-evident observation raises the issue of the firm (or business unit) as the basic, and often only, unit of analysis: in certain circumstances we might more appropriately consider an information coalition of such firms as the key unit.

Earlier, the border of the company was seen as the dividing line between co-operation and conflict – cooperation within the company and conflict in relation to all external units. The corresponding means for coordination are heirarchy and the market mechanism. The existence of relationships makes this picture more diffuse. There are great opportunities for cooperation with a lot of external units forming, for example, coalitions. Thus, it is often more fruitful to see the company as a part of a network instead of a free and independent actor in an atomistic martket.

However, the recognition that there is a network of relationships is merely the first step. Approaches need to be developed for the analysis of the network.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, Lectures, Line of Sight

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Rethinking Organization’s Infrastructure


An architect’s work requires more than site selection and structural design. A building also has an infrastructure, a complex and sometimes invisible web of systems that work together to make the building functional and livable. These include the mundane heating, electrical, plumbing, and air circulation systems, as well as the essential channels for people movement and telecommunication hookup.

Infrastructure is not just an add-on. The development of new technologies that provide efficient solar heating also required architects to consider a new set of factors when siting a building. Just as the invention of the elevator paved the way for today’s concrete and steel skyscrapers, some new organizational concepts and technologies are needed to make horizontally oriented structures workable and vacuum free.

The organizational infrastructure needs to make the new corporation work. Issues such as the hierarchy of reporting relations, the career structures they imply, and the middle managers who populate must be considered, along with ways to rethink control and coordination so that new learning, rather than resigned compliance, is produced.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, Line of Sight