Chapter 2: Partnership as a Major Type of Organization Form
2. Partnership as a major type of organization form INTRODUCTION This chapter provides an overview of partnerships as a special class of organizations. A distinction is made between ownership-derived governance and organization structure to articulate their distinctive features. Partnerships are highly human asset-intensive which means that they govern the ﬁrms’ strategic capabilities but also face major challenges in attracting, specializing and advancing their members. Here we delineate the properties of partnerships and contrast them with other classes of organizations. The ownership-governance and organizational structure in human assetintensive ﬁrms assume each other. In other words, the creation and upgrading of strategic capabilities by the corporate leadership are very much a function of the authority and control structure that surrounds the organizational strategists. Ownership structure deals mainly with the relationship between owners and managers around the ﬁrm as a bundle of strategic assets – in knowledge-intensive ﬁrms mostly carried by people – while organization structure deals with managers and employees, the stratiﬁcation of people into various echelons and positioned in diﬀerent departments. The governance structure is central to the building and upgrading of strategic capabilities. The ﬁrm comprises a bundle of routines – both lower order routines such as sales, marketing, ﬁnance and production and higher order or meta-routines that govern the organization of lower order routines. In Chapter 4, for instance, results are presented on a ﬁrm’s superior human and social capital and the performance advantages that are associated with such non-ﬁnancial capital. Chapter 6 describes mergers and acquisitions between professional...
You are not authenticated to view the full text of this chapter or article.
Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.
Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.
Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.