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Strategic Networks - 1st Edition - ISBN: 9780750615723, 9781483193861

Strategic Networks

1st Edition

Creating the Borderless Organization

Author: J. C. Jarillo
eBook ISBN: 9781483193861
Imprint: Butterworth-Heinemann
Published Date: 8th November 1993
Page Count: 190
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Strategic Networks: Creating the Borderless Organization focuses on the principles, methodologies, and approaches involved in the creation of borderless organizations.

The book first underscores competition and cooperation and the ways to organize a business system. Discussions focus on organization as a way to meet strategic demands, vertical integration and subcontracting, intrinsic profitability of different activities, disadvantages of vertical integration, and guidelines for decision-making on vertical integration. The monograph then examines over-subcontracting, strategic network, and essence of a strategic network. Topics include generating trust, how to reduce transaction costs, competition and cooperation, subcontracting in the automobile industry, advantages of shops, manufacturing and selling activities, and network organization. The publication explores international considerations, including cost of the activities and costs of coordination in international business, vertical integration and subcontracting across borders, and coordinating efficiently across borders.

The book is a valuable source of information for researchers interested in the establishment of borderless organizations.

Table of Contents


Part One Competition and Cooperation

1 A New Way to Compete

Current Competitive Requirements

Organization as a Way to Meet Strategic Demands

The Two Basic Ways to Organize Economic Activity: Vertical Integration and Subcontracting

The Emerging Way: Strategic Networks

Description of this Book

2 Understanding the Playing Field: The Business System

The Business System

The Intrinsic Profitability of the Different Activities

Organizing the System

Part Two The Three Ways to Organize a Business System

3 The Old System: Organization Through Vertical Integration

Why do Companies Integrate?

A Weak Argument

Other Arguments for Vertical Integration

Disadvantages of Vertical Integration

Guidelines for Decision-Making on Vertical Integration

Why the Problems are Outweighing the Advantages More and More


4 The Fashionable Mistake: Oversubcontracting

Advantages of Subcontracting

When Subcontracting Goes Wrong


5 The Emerging Solution: The Strategic Network

Benetton Spa

A Network Organization

Manufacturing Activities

Selling Activities

The Essence of the System

Subcontracting in the Automobile Industry Revisited: The Japanese Way

Part Three How to Set Up and Manage a Strategic Network

6 The Essence of a Strategic Network

Competition and Cooperation

When is Cooperation the Most Appropriate Way?

How to Reduce Transaction Costs

Generating Trust

The Network's Internal Consistency

When is a Strategic Network the Appropriate Response?

Setting Up and Managing in a Strategic Network


7 International Considerations

Cost of the Activities and Costs of Coordination in International Business

Vertical Integration and Subcontracting Across Borders

International Strategy: Coordinating Efficiently Across Borders


8 General Conclusions




No. of pages:
© Butterworth-Heinemann 1993
8th November 1993
eBook ISBN:

About the Author

J. C. Jarillo

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