Dynamics of Network Governance: A Contribution to the Study of Complex Forms
18 Pages Posted: 26 Oct 2005
There are 2 versions of this paper
Dynamics of Network Governance: A Contribution to the Study of Complex Forms
Dynamics of Network Governance: A Contribution to the Study of Complex Forms
Date Written: October 2005
Abstract
The architecture of complex forms of governance is the focus of this paper. Networks are complex forms of organization designed to govern inter-firm transactions involving horizontal and vertical coordination. The choice among alternative institutional arrangements is affected by relation-specific investments, distributive mechanisms, and dynamic aspects based on relational contractual mechanisms, trust being relevant. The way in which horizontal and vertical coordination levels are connected is an important question. This paper recognizes that price incentives can keep networks structured in addition it introduces the effect of network externalities, offering likewise incentives. The paper presents a semi-formal model that considers the existence of network externalities and applies a game approach to explain the choice among alternative strategies. The concept is applied to two cases of network architecture in agro-industrial relations.
Keywords: Network governance, agro-industrial networks
JEL Classification: B52, D23
Suggested Citation: Suggested Citation
Do you have a job opening that you would like to promote on SSRN?
Recommended Papers
-
Subjective Performance Measures in Optimal Incentive Contracts
By George P. Baker, Robert S. Gibbons, ...
-
By Luigi Zingales and Raghuram G. Rajan
-
By Raghuram G. Rajan and Luigi Zingales
-
Implicit Contracts and the Theory of the Firm
By George P. Baker, Robert S. Gibbons, ...
-
Relational Contracts and the Theory of the Firm
By George P. Baker, Robert S. Gibbons, ...
-
The Firm as a Dedicated Hierarchy: A Theory of the Origin and Growth of Firms
By Raghuram G. Rajan and Luigi Zingales
-
The Firm as a Dedicated Hierarchy: A Theory of the Origin and Growth of Firms
By Raghuram G. Rajan and Luigi Zingales
