Coping with Problems of Understanding in Interorganizational Relationships: Using Formalization as a Means to Make Sense

Abstract

Research into the management of interorganizational relationships has hitherto primarily focused on problems of coordination, control, and to a lesser extent, legitimacy. In this article, we assert that partners cooperating in such relationships are also confronted with 'problems of understanding'. Such problems arise from differences between partners in terms of culture, experience, structure and industry, and from the uncertainty and ambiguity that participants in interorganizational relationships experience in early stages of collaboration. Building on Karl Weick's theory of sensemaking, we advance that participants in interorganizational relationships use formalization as a means to make sense of their partners, the interorganizational relationships in which they are engaged and the contexts in which these are embedded so as to diminish problems of understanding. We offer a systematic overview of the mechanisms through which formalization facilitates sensemaking, including: (1) focusing participants' attention; (2) provoking articulation, deliberation and reflection; (3) instigating and maintaining interaction; and (4) reducing judgement errors and individual biases, and diminishing the incompleteness and inconsistency of cognitive representations. In this way, the article contributes to a better understanding of the relationships between formalization and sensemaking in collaborative relationships, and it carries Karl Weick's thinking on the relationship between sensemaking and organizing forward in the context of interorganizational management.

The Two Facets of Collaboration: Cooperation and Coordination in Strategic Alliances

“…Joint-venture structures and formal contracts can replicate key elements of hierarchy (Stinchcombe, 1985)-such as standard operating procedures and hierarchical 12 The assumption of organizational inertia has especially important implications for partner selection: because the partners will have a difficult time adapting their organizational structures and resources to the needs of the alliance, it is critical for the long-term evolution of the collaboration to select partners with a high level of fit to the task at hand and to one's own organization's resources. controls-that clarify and formalize the division of labor, overcome individuals' bounded rationality and limited span of attention (Gulati & Singh, 1998), and bridge cultural differences (Vlaar, Van den Bosch, & Volberda, 2006).…”

Percepções de enfermeiros docentes e assistenciais sobre a parceria ensino-serviço em unidades básicas de saúde

“…According to the standard adopted 10 , the partnership goals common understanding plays a central role in the collaborative effort between parties and allows different views and expectations of the relationship to achieve congruence. It reinforces the argument that partnership results should focus not only on teaching, but also in the relationship with people assisted and satisfaction of all parties involved 5 .…”

“…Data reveal that nurses are developing a significant educational action often without adequate instrumentation and in a solitary way. The theoretical reference adopted 6,10 shows the individual's role importance in the interorganizational cooperation because even with contracts the work is done by people, and they have institutional roles. At the same time, such functions are full of subjectivity, and there is also a personal role.…”

“…The theoretical framework of this paper indicates that, for every relationship, it is necessary to estimate a mismatch function in which difficulties can be addressed for partnership's solution and survival 10 . In this context, relations between both worlds teaching and service need to be created and maintained.…”

“…While it may include a restrictive component, formalization 10 allows creating mechanisms for boosting debates, forcing deliberations and reflections to generate a collaborative sense of partnership.…”