It suggests the inequality of influence between the two groups of internal stakeholders.
External Stakeholders are often considered as the secondary and passive stakeholders with little or no direct influence over the affairs of the company. Dell has many strategic relationships with different organizations such as Sony, Microsoft, Citrix System, and Autodesk etc. such external stakeholders are networked through the strategic alliances in which organizations such as Microsoft providing its operating system with every Dell Computer.
In a networked organization, employees often become the part of at least two teams and need to have explicit connections with each other. However, the time constraints arising due to multiplicity of processes is not often explicit therefore for Dell, it becomes sometimes difficult to arrange teams in their more efficient way resulting into productivity losses. Further, the time constraints shall also be viewed in terms of the reachability- a measure in which different nodes of the network interact each other.
For a networked organization, density defines the interconnectedness of the group of the organizations however, density or the degree of interconnectedness between the members of the team dilutes, and the networked organizations often show vulnerability of loosing the efficiency. This often is the result of poor training in team dynamics which results into ineffective team functioning
Creative tension vs. groupthink and group shift needs to be fostered.
Team dynamics are such that individual thinking often takes precedence therefore networked organizations often lead to ineffective and conflicting team dynamics. Dell's strategy have been to rely on teams i.e. integrating different teams to achieve different objectives therefore can lead to inefficiencies and culmination of bureaucracies as discussed above.
External customers are part of the continuing interdependency.
Characteristics of the virtual company relate to the concept of interdependency:
Networked organizations are often dependent on different variables or nodes of the network and customers are often referred as the essential nodes of that interdependency. Networked organizations often lead to extended and better customer services because of their approach of considering organizations as a group of interconnected entities. Dell's business model is probably the best model in terms of customer service. This has become possible because of following reasons:
The radical view of the modern organization suggests that the firms have very flexible and fluid boundaries within which they tend to operate. It is also critical that the fluid boundaries allow organizations to become more responsive to their external customers.
Flexible Schedules allow organizations to manage the stability within the organizations by allowing organizations to develop competencies to manage in volatile environment. Flexible schedules are part of such flexibility drive of the organizations which allow them to view external customers i.e. customers, shareholders etc within a broader perspective and allow organizatio