Research On Risk Mechanism And Evaluation Of Modular Network Organization

Compared with the traditional organization, modular network organization not only had advantages of hierarchical organization and market, but also formed some new characteristics just like cooperative, win-win and innovation. Same as other forms of organization, modular network organization also faces risks. As a new form of organization, modular network organization would face special risks by its own unique. To solve this problem, the type of risk of modular network organization and its mechanism would be analysis and evaluated in this paper.According to the characteristics of the modular network organization, the modular network organization and its risks were defined by literature analysis and logical deduction method, and risk mechanism of modular network organization was deduced by relevant principles of economics. A multi-index comprehensive evaluation model was established by ANP, in order to evalute risk of modular network organization. By case study, risk sources and the performance of an automobile enterprise groups with typical characteristics of the module network organization was analysised, in order to provide basis for risk effective control.The conclussions of this paper were drew as following. The risk of modular network organization could be divided into two types, one was endogenous risk and another was exogenous risk. Endogenous risk was derived in the process of modular network organization production, development, maturity, and was the fundamental factors cause organizational recession, which included network structure risk, relationship risk. Exogenous risk was the induced factors cause organizational recession, which included market risk, political risk and economic risk caused by cyclical changes. Endogenous and exogenous risk were not isolated but interconnected, impacts from internal and external risks to the modular network organization was insignificant. Relationship risk would make a direct impact to modular network organization. Structural risk, market risk and political risk made an indirect impact to modular network organization. The impact from relationship risk could make biggest effect, the followed ones would be structural risk and market risk, and political risk would make the least impact. Case study showed that modular enterprises which were central firms in the organization or firms in core network layer had middle-low risk, and modular enterprises in external network layer had middle risk.As a new form of organization, modular network organization had some advantages just like economics of connection, economics of scope, economics of scale and innovation. However, great risks which were hidden under the surface "prosperity" could not be ignored. In this paper, the type and mechanism of modular network organization risk was analysed and evaluated. It could have a positive reference value for the development of risk control measures, and have a positive reference value for the effective operation of a similar network organization.