Rationality in decision-making within interorganisational networks
Date
2017
Journal Title
Journal ISSN
Volume Title
Publisher
Lviv Politechnic Publishing House
Abstract
A networking structure is a natural
phase in the evolution of organisational forms. An
organisational form of a network is a set of
interconnected structures and technological elements, i.e.
individual economic agents, cultural and social values
that arrange inter-organisational relations in a certain
order and make network processes operate in a systemlike
fashion. Effective joint work in inter-organisational
networks suggests a need for a common goal, which is
perceived to be a critical factor for joint activities.
The paper studies the rationality of decisionmaking
for inter-organisational networks. The analysis of
behaviour within inter-organisational networks that
consist of agents, like firms, entrepreneurs, governmental
authorities, scientific centres, proves that group decisions
are not always an optimal method to achieve a goal.
There are certain tasks and circumstances when an
authoritarian approach to problem solving is more
sensible. It analyses a formalized model for joint choice,
prevailing practice and rationality of group decisionmaking
in order to reach a strategic balance within a
network. The study summarizes key advantages and
drawbacks in case a decision is made by a group.
Description
Keywords
inter-organisational networks, rationality, decision-making procedures, strategic balance, cooperative game, coalition
Citation
Danylovych-Kropyvnytska M. Rationality in decision-making within interorganisational networks / M. Danylovych-Kropyvnytska, A. LimaĆski // Economics, Entrepreneurship, Management. â Lviv : Lviv Politechnic Publishing House, 2017. â Vol 4. â No 2. â P. 9â14.