Business networks: organizational innovation - innovative organization.
Author: Éva Kocsis
Evaluation of business networks in economic theory as a new phenomenon seems to be
rather inhomogeneous. The key to network success has been sought and interpreted using
organisation theory approach over the transaction cost discipline up to the application of
evolution analogies. In spite of this diversity there is a widely shared conception that
networks present a hybrid organizatonal form between market and hierarchy. We argue that
the business network is a qualitatively new-type institution of modern market economy
which has to be interpreted and analysed on its own right.
Networks combine the strategy of competition and cooperation, optimalize the elements
of market and hierachy at a network level, and integrate the different business
competencies of the network?s units. Our thesis is that a network has a superior
productivity potential compared to an entreprise which can be essentially traced back to
the special learning processes of the networks. We examine this thesis from a transaction
cost perspective, and a strategic managment point of view.
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