Editing Organization (section)

=== The interplay between formal and informal organizations ===
As most organizations operate through a mix of formal and informal mechanisms, organization science scholars have paid attention to the type of interplay between formal and informal organizations. On the one hand, some have argued that formal and informal organizations operate as substitutes as one type of organization would decrease the advantages of using the other one. For instance, if parties trust each other the use of a formal contract is unnecessary or even detrimental to the relationship.<ref>{{Cite journal|last1=Lui|first1=Steven S.|last2=Ngo|first2=Hang-Yue|date=2004|title=The Role of Trust and Contractual Safeguards on Cooperation in Non-equity Alliances|journal=Journal of Management|language=en-US|volume=30|issue=4|pages=471–485|doi=10.1016/j.jm.2004.02.002|s2cid=144788583|issn=0149-2063}}</ref> On the other hand, other scholars have suggested that formal and informal organizations can complement each other. For instance, formal mechanisms of control can pave the way for the development of relational norms.<ref>{{Cite journal|last1=Poppo|first1=Laura|last2=Zenger|first2=Todd|date=2002|title=Do formal contracts and relational governance function as substitutes or complements?|journal=Strategic Management Journal|language=en|volume=23|issue=8|pages=707–725|doi=10.1002/smj.249|issn=1097-0266|doi-access=free}}</ref>