The Baltic Region

2014 Issue №3(21)

Back to the list Download an article

Network Transformations in Economy



In the context of ever-increasing market competition, networked interactions play a special role in the economy. The network form of entrepreneurship is increasingly viewed as an effective organizational structure to create a market value embedded in innovative business solutions. The authors study the characteristics of a network as an economic category and emphasize certain similarities between Rus sian and international approaches to identifying interactions of economic systems based on the network principle. The paper focuses on the types of networks widely used in the economy. The authors analyze the transformation of business networks along two lines: from an intra- to an inter-firm network and from an inter-firm to an inter-organizational network. The possible forms of network formation are described depending on the strength of connections and the type of integration. The drivers and reasons behind process of transition from a hierarchical model of the organizational structure to a network type are identified. The authors analyze the advantages of creating inter-firm networks and discuss the features of inter-organizational networks as compares to inter-firm ones. The article summarizes the reasons for and advantages of participation in inter-rganizational networks and identifies the main barriers to the formation of inter-organizational network.


1. Болычев О. Н. Этапы формирования и развития сетевых предпринимательских структур // Известия Тульского государственного университета. Экономические и юридические науки. 2009. № 1. С. 271—280.
2. Болычев О. Н., Волошенко К. Ю. Межорганизационные сетевые взаимодействия как определяющая форма научно-технического и инновационного сотрудничества России и Европейского союза в Балтийском регионе // Балтийский регион. 2013. № 4 (18). C. 23—39.
3. Егорова Н. Е. Применение количественных методов для анализа сетевых структур // Аудит и финансовый анализ. 2006. № 1. С. 255—266.
4. Соболева Ю. П. Теоретические аспекты исследования межфирменного сотрудничества // ИнВестРегион. 2011. № 3. C. 55—60.
5. Шерешева Ю. М. Межфирменные сети. М. : ТЕИС, 2006.
6. Anderson J. C., Hakansson H., Johanson J. Dyadic business relationships within a business context // Journal of Marketing. 1994. № 58. P. 1—15.
7. Anderson P., Tushman M. L. Technological Discontinuities and Dominant Designs. A Cyclical Model of Technological Change // Administrative Sciences Quarterly. 1990. № 35. P. 607.
8. Burt R. S. Structural Holes: The Social Structure of Competition. Cambridge, Mass. : Harvard University Press, 1992.
9. Burt R. S., Knez M. Kinds of Third-Party Effects on Trust // Rationality and Society. 1995. № 7. P. 225—292.
10. Chesbrough H. Open Innovation: The New Imperative for Creating and Profiting from Technology. Boston : Harvard Business School Press, 2003.
11. Coe N. M., Yeung H. M., Dicken H. W. Globalizing’ regional development: a GPNs perspective // Transactions of the Institute of British Geographers. 2004. № 29. P. 468—484.
12. Contractor F., Lorange P. Cooperative Strategies in International Business. Lexington, Mass. : Lexington Books, 1988.
13. Cooke P. Enterprise Support Policies in Dynamic European Regions: Policy Implications for Ireland, paper presented at NESC seminar, Sustaining Competitive Advantage, NESC Research Series. March 1998, Dublin.
14. De Bresson C., Amesse F. Networks of innovators: a review and introduction to the issue // Research Policy. 1991. № 20(5). P. 363—379.
15. Dore R. Goodwill and the Spirit of Market Capitalism // British Journal of Sociology. 1983. № 34. P. 459—82.
16. Economides N. The economics of networks // International Journal of Industrial Organisation. 1996. № 16. P. 673—699.
17. Ernst D., Kim L. GPNs, knowledge diffusion and local capability formation //Research Policy. 2002. P. 1417—1429.
18. Forfas publications. Innovation networks. The national policy and advisory board for enterprise, science, technology and innovation, 2004.
19. Freeman L. C. Centrality in Social Networks: Conceptual Clarification //Social Networks. 1979. № 1. P. 215—39.
20. Gefferi G. The organization of buyer-driven global commodity chains: how US retailers shape overseas production networks // Gefferi G., Korzeniewicz M.(Eds.). Commodity Chain and Global Capitalism. Westport : Greenwood Press,1994. P. 95—112.
21. Gereffi G., Humphrey J., Sturgeon T. The governance of global value chains //Review of International Political Economy. 2005. № 12. P. 78—104.
22. Granovetter M. Economic action and social structure: The problem of embeddedness // American Journal of Sociology. 1985. № 91(3). P. 481—510.
23. Gray B. Conditions Facilitating lnterorganizational ColIaboration // Human Relations. 1987. № 38. P. 911—36.
24. Gulati R. Familiarity Breeds Trust? The Implications of Repeated Ties on Contractual Choice in Alliances // Academy of Management Journal. 1995. № 38.P. 85—112.
25. Gulati R. Social Structure and Alliance Formation Pattems: A Longitudinal Analysis // Administrative Science Quarterly. 1995. № 40. P. 619—52.
26. Gulati R., Singh H. The Architecture of Cooperation: Managing Coordination Uncertainty and Interdependence in Strategic Alliances // Administrative Science Quarterly. 1998. № 43. P. 781—814.
27. Hakansson H., Johanson J. Industrial functions of business relationships, in Sharma D. D. (eds.) Advances in Industrial Marketing. Vol. 5 : Greenwich: JAI Press, 1993.
28. Hakansson H., Snehota I. Developing Relationships in Business Networks.Boston : International Thomson Press, 1995.
29. Harrigan K. R. Managing for Joint Ventures Success. Lexington : Lexington Books, 1986.
30. Harrison B. Lean and mean: the changing landscape of corporate power in the age of flexibility. Cambridge : Harvard University Press, 1994.
31. Hergert M., Morris D. Trends in Intemational ColIaborative Agree ments. ln Contractor and Lorange. 1988. P. 99—109.
32. Iacobucci D., Hopkins N. Modeling dyadic interactions and networks in marketing // Journal of Marketing Research. 1992. № 29. P. 5—17.
33. Jadjev H., Browne J. The extended enterprise — a context for manufacturing // Production Planning and Control. 1998. № 9 (3). P. 216—29.
34. Jarillo J. C. Strategic Networks: Creating the Bordeless Organization. Oxford: Butterworth — Heinemann, 1993.
35. Jones C., Hesterly W. S., Borgatti S. P. A general theory of network governance: exchange conditions and social mechanisms // Academy of Management Review.1997. № 22 (4). P. 911—45.
36. Katz M. L., Shapiro C. Systems competition and network effects // Journal of Economic Perspectives. 1994. № 8. P. 93—115.
37. Knoke D., Kuklinski J. H. Network Analysis, Sage Publications, London,1982.
38. Koestler A. The Ghost in the Machine. London : Arkana, 1967.
39. Miles R. E., Snow C. C. Causes of failure in network organizations // California Management Review. 1992. № 34. P. 53—72.
40. Miles R. E., Snow C. C. Network Organizations: New Concepts for New Forms // California Management Review. 1986. № 28. P. 62—75.
41. Möller K. E., Svahn S. Managing strategic nets: A capability perspective //Marketing Theory. 2003. № 3 (2). P. 201—226.
42. Mowery D. C. (eds.) lnternational Collaborative Ventures in US Manufacturing.Cambridge, Mass. : Ballinger, 1988.
43. Nikolenko A., Kleiner B. H. Global trends in organizational design // Work Study. 1996. № 45 (7). P. 23—26.
44. Oliver C. Determinants of interorganizational relationship: integration and future directions // Academy of management review. 1990. № 15. P. 241—265.
45. Parolini C. The Value Net: A Tool for Competitive Strategy. John Wiley & Sons : Chichester, 1999.
46. Patel P., Pavitt K. The nature and economic importance of national innovations systems // STI Review. 1994. № 14. P. 9—32.
47. Pfeffer J., Salancik G. The External Control of Organizations: A Resource Dependence Perspective. New York : Harper and Row, 1978.
48. Porter M. E. Clusters and the new economics of competitiveness // Harvard Business Review. 1998. December. P. 77—90.
49. Porter M. E. Competitive Advantage: Creating and Sustaining Superior Performance.N. Y. : Free Press, 1985.
50. Powell W. W. Neither Market nor Hierarchy: Network Forms of Organization // Research in Organizational Behavior. 1990. № 12. P. 295—336.
51. Powell W. W., Koput K., Smith-Doerr L. Inter-Organizational Collaboration and the Locus of Innovation: Networks of Learning in Biotechnology // Administrative Science Quarterly. 1996. № 41. P. 116—45.
52. Saxenian A. Regional advantage: Culture and competition in Silicon Valley and Route 128. Cambridge, MA : Harvard University Press, 1994.
53. Seufert A., von Krogh G., Bach A. Towards knowledge networking // Journal of Knowledge Management. 1999. № 3 (3). P. 180—190.
54. Smelser N. J., Swedberg R. (eds.) The Handbook of Economic Sociology. Princeton : Princeton University Press, 1994. P. 367—402.
55. Storper M. Regional technology coalitions an essential dimension of national technology policy // Research Policy. 1995. № 24 (6). P. 895—911.
56. Taticchi P., Cagnazzo L., Beach R. et al. A management framework for organisational networks: a case study // Journal of Manufacturing Technology. 2012.№ 23 (5). P. 593—614.
57. Thorelli H. B. Networks: between markets and hierarchies // Strategic Management Journal. 1986. № 7. P. 37—51.
58. Wikström S., Richard N. Knowledge and Value. Lontoo : Routledge, 1994.
59. Zongling Xu, Jiali Lin, Danming Lin Networking and innovation in SMEs: evidence from Guangdong Province, China // Journal of Small Business and Enterprise Development. 2008. № 15 (4). P. 788—801