Interdependence among units; case study of Ghana health insurance system

The study of interdependence help owners of businesses understand how the various sectors, departments or units within their organizations depend on the productivity or performance of others. Some researchers have posited that interdependence and subsequent interaction among individuals and groups are the basis for organization, (Grant,1996). Understanding interdependence also influences the design structure of the organization. It encourages interaction across enterprises, minimizes hierarchical differentiation, and engages organizational tensions. Thus, organizations require the flow of information and coordination of effort to be effective because inappropriate interdependence can disrupt these basic processes, interfere with productivity, and impact the bottom line, (Alder, 1995). Effective organizational interdependence is also a salient component of an organization's long-term success, as it is a central component of effective work relationships Van de Ven (1980). This study examines the extent to which one organization's interdependence on another organization mediates the relationship between them and drives effective coordination and governance of inter-organizational relationships.