Networks: Between markets and hierarchies

TLDR

Interorganizational networks have mainly been studied in nonprofit contexts but are increasingly relevant in international operations and industrial/services marketing. The study proposes that such networks provide an alternative to open markets and internalization, potentially driving business growth through strategic planning. Network management requires a holistic approach that integrates technology transfer, information exchange, accounting, finance, and marketing, with strategic planning at both the overall level and within member firms.

Abstract

Abstract Interorganizational networks generally have been discussed in the context of nonprofit agencies. Providing an alternative between the open market and the internalization of activity the network potentially may be even more important in business. This is especially true in international operations and in industrial and services marketing. Involving technology transfer, information exchange, accounting and finance as well as marketing, network management calls for a holistic approach. To serve as an engine of growth the network also requires strategic planning both at the overall level and in member firms.