Research On The Conduction Mechanism Of Risks For Network Organization

The network organization as a new organization is concerned greatly in the business world and theory world. An important reason for this is that the network organization can generate significant synergies. However, the operation of network organization also faces many uncertainties. On the one hand, risks are objective and necessary; on the other hand, it is easy for risks of network organization to conduct within the organization, and the conduction can have a great negative impact on the network. Therefore, the research on risks conduction of network organization has become an urgent study.In this paper, based on literature analysis it studies the specific reasons and paths of risks conduction for the network organization. It deduces the conductive process of risks for network organization by functional analysis, and constructs path models of risks conduction for the network. Combined with case analysis, it analyses the conduction effect of risks for network organization.In this paper, conclusions were drew as following: the conduction of risks of the network has the objective necessity, because of cooperation business process, the asymmetry of information between nodes, node enterprise anti-risk ability and so on. The more connection of network node, the easier the risk conducts. In the network organization whose structure is with hubs and in the network organization with a high degree of aggregation the risk is likely to conduct; the conduction of network organization risk has path dependence. According to the direction of risk conduction, it can be divided into: chain conduction path, radiation-type conduction path and the central path; Conduction effects in the process of network organization risk conduction include: domino effect, coupling effect, and the bullwhip effect.The research on network organization risk conduction has important theoretical and practical significance. It mainly reflected in: it is good to grasp the nature of risk conduction, understand the laws of risk of conduction and provide a theoretical basis to control the risk for network organization; it is good to define the logical relationship between network organization risk conduction and network organization crisis. This can effectively prevent the network organization crisis to provide a guarantee for the healthy operation of the network organization.