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Examines the use of interorganizational networking as a way for traditionally bureaucratic organizations to become more innovative. Cites examples of networking from manufacturing and the service sector to illustrate the adaptability and flexibility of this form of organization. Examines the pros and cons, thus revealing that networking is a viable option for contemporary organizations, forced by increased competition, changing market conditions, and rapid technological advances, to restructure in an attempt to meet the challenges posed by a rapidly changing external environment. Recognizes the importance of thinking about organizing from an open systems perspective. Concludes that networking is appropriate for a variety of organizations and may be modified to meet individual circumstances. Networking can be achieved locally, nationally, or internationally. Networking also can serve as a transitional stage to help organizations to become leaner, more innovative and responsive in order to meet today′s organizational challenge to change.

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