An approach for assessing and managing inter-unit interdependence

Interdependence exists when actions by one referent system affect the actions of another referent system. The conceptual framework includes: 1. a referent system common to intra and inter-organizational contexts, 2. a set of dimensions which define interdependence operationally, and 3. a set of moderating variables that influence perceptions of interdependence. The referent system for the model is the work unit. Focusing on interventions by decision makers is allowed by operationalizing interdependence in transactional terms. The dimensions of transactional interdependence include: 1. the number of different resources passed between units, 2. amount of resource exchanged, 3. frequency of transactions per unit of time, 4. amount of time before resource loss affects outcomes, 5. composite value of resource to unit, and 6. direction of the resource flow. The moderating variables are: 1. bounded rationality, 2. opportunistic behavior, 3. uncertainty/complexity, 4. small numbers conditions, and 5. information impactedness. The implications for managers are: 1. Perceptual differences are the source of inter-unit conflict. 2. Transaction costs are a focus of a unit's resource allocations for managing interdependence.