ABSTRACT
This chapter presents the forms of organization and networks that are available to achieve goals of collaboration. It analyses features relevant for competence as well as features relevant for governance. First, it proposes a taxonomy of features of network structure and a taxonomy of features of ties within networks. In particular, it ‘unpacks’ the notion of the strength of ties. Ties can be strong in some features and weak in others. Subsequently, it analyses the choice and design of forms. In particular, it looks at the choice between integration of firms, in a merger or acquisition (MA), and alliances between formally independent firms. It gives reasons that are rational, in the sense of serving the interests of the firm, and reasons that may be rational for managers but counterproductive for firms. It argues that especially from a perspective of learning
often MA has been chosen for bad reasons, where alliances would have been better. It discusses equity joint ventures as an intermediate form, and the use of licensing. It pays special attention to structures of buyer-supplier relations, and the emerging form of ‘external corporate venturing’. Subsequently, it discusses the essential change that occurs in going from a bilateral relation to relations between three or more players, and the role of ‘third parties’. It discusses the notion of the ‘revelation problem’ in knowledge exchange. In the advanced section, in a link with geography, it discusses the role of location and distance, and the idea of a possible ‘death of distance’ due to advances in information and communication technology (ICT).
