Neither Market nor Hierarchy: Network Forms of Organization

Abstract

Network forms of organization, typified by reciprocal patterns of communication and exchange, represent a viable pattern of economic organization. The paper contrasts networks with market and hierarchical governance structures, and highlights the distinctive features of networks. It presents illustrative examples of network arrangements in craft and high–technology industries, in regional economies, and in formerly vertically integrated fields. The paper concludes with a discussion of the conditions that give rise to network forms.