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This article discusses the gossip in interorganizational structure. The gossip from other organization can be delivered to the origin of gossip. This can lead the organization to formulate the denial of the issue. However, if the gossip is the true, this gossip can gain credibility among people. As an example, the researchers talked about the “oil-for-food” case. This programme was initially made to relieve tough regulation on Iraqi government. Unlike initial purpose, the programme has been hit by allegation that the Iraqi government, politicians and UN officials from several countries illegally profited from the programme. AWB(Australian Wheat Board) was alleged that they were giving money to have a contract with the Iraqi government. AWB initially denied the gossip. However, it turns out that they were involved in embezzlement which is a violation of UN resolution. The investigator found out that the gossip on AWB became legitimate and formulated. The Australian government denied the suspicion that they have known the kickbacks. From this case, this article proves that organizational gossip has a huge influence on the production of interorganizational power dynamics an insight.
While I was reading this article I assume that the case analysis can’t applied in other situation. In the essence of gossip and rumor, people tend to spread the rumors and gossip easily when these are about the person or group that they don’t like. In the case of “oil-for-food” programme, the US government is more likely to start the investigation since Australia was the only one who gains benefit by trading with Iraq. If US was also benefiting from trading with Iraq and balanced with Australia, they could be ignorant about the gossip on Australia. Therefore, even the case of “oil-for-food” seems plausible, it does not apply in various circumstances.
Additionally, with the advance in technology, the environment...