Boundary Spanning Communication
Boundary spanning communication includes meeting with other companies for planning, informal conversations, and written communication. It is important for the company to maintain communication with different companies to help them gain the knowledge needed to develop an innovative product. It's essential to communicate formally through meetings, but communication can also be done through informal methods of communication. Using informal communication methods such as emails or phone calls allow the managers to communicate the information and still have the ability to concentrate on internal and external issues that may occur.
Importance of Working Together
Boundary spanning gives a company the ability to grow by gaining knowledge from external forces. Boundary spanning helps reduce costs and allows companies to share information. It's necessary for a smaller organization to be more open to gaining information from their outside environment because they do not have the same resources as larger companies. Large companies have the money to invest more in infrastructure, technology, and research. Sometimes large corporations utilize boundary spanning to gain even more money or competitive advantage. Smaller companies may have to join with other companies to have access to more resources.
Companies can reduce their boundaries by creating a partnership with another company. It is helpful sometimes for companies to merge to gain a more strategic advantage over companies. Merging is when two or more companies come together to become one company. Sometimes companies will join to create more innovative technology by generating more profit, learning their former competitor's strategies, and to have the ability to take on more market share. Big companies will buy out their competition, so they have a more competitive advantage and can gain more market share.
Another boundary spanning technique is utilizing a joint venture. A joint venture is when two or more companies come together to develop a project that may be too complex for one company to complete. Joining forces with other companies allows synergy to be created between the two organizations. Synergy is when two or more companies come together to produce something better than they would separately. Joining forces allow both companies to create a unique product and pull their resources together. A joint venture allows two or more companies to share resources and create a strong product.
Examples
A small retail company called Jake's Jackets will create a joint venture with an advertising agency to help their business grow. Jake's may not have the funds to build a large advertising campaign or the knowledge of advertising, so by joining with an advertising agency they can achieve more efficient brand awareness. It works out for both companies because Jake's Jackets will have a company with extensive knowledge of marketing take control of their marketing campaign, and the advertising agency will receive profit from creating marketing campaigns for Jake's Jackets.
An example of merging would be in the banking industry. Often, smaller banks merge with larger banks to utilize better technology and to have a larger scope in business. Smaller banks often just focus on deposits or making loans. When they merge with larger banks, they have the ability to take on mutual funds and take more substantial risks. Commerce Bank merged with TD Bank, and Wachovia Bank merged with Wells Fargo Bank to enter into a larger market and earn more profit.
Another example of boundary spanning is when smaller organizations do not have the same resources as larger organizations. Apple is one of the leaders in technology, thanks to the iPhone, iPad, and iPod, along with many other innovative products. Apple regularly rebrands products and creates new technologies. A smaller company cannot compete with the technology of Apple, which makes it essential for the smaller company to use boundary spanning with other organizations to help create a more innovative product.
Lesson Summary
Utilizing boundary spanning roles will allow your small business to flourish. Boundary spanning roles interact with individuals and groups outside the organization to obtain valuable information to help the innovation process. Boundary spanning communication includes meeting with other companies for planning, informal conversations, and written communication.
Boundary spanning helps reduce costs and allows companies to share information. Companies can reduce their boundaries by creating a partnership with another company. Companies merge to create more innovative technology by generating more profit, learning their former competitor's strategies, and to have the ability to take on more market share. A company may utilize a joint venture, which allows two or more companies to share resources and create a strong product.
