Abstract:

This paper uses hierarchy theory, an aspect of systems theory, to develop coordination theory in the area of inter-organisational business networks like supply chains and outsourcer networks. We do this by investigating the role of a network orchestrator; the organisation that influences a whole network of other organisations and its inter-relationships with other network members. We prove that an orchestrator exists on a separate hierarchical level to ordinary network members. We illustrate this with fives example networks: a global supply chain orchestrator; a global sporting brand; a regional chamber of commerce; a city council; and a national market regulator. The size, focus and type diversity of our case illustrations supports some highly generalisable implications for designing strategies to influence and operate such networks.