Strategic Networks

Strategic Networks

Creating the Borderless Organization

1st Edition - November 8, 1993

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  • Author: J. C. Jarillo
  • eBook ISBN: 9781483193861

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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

  • Preface

    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



Product details

  • No. of pages: 190
  • Language: English
  • Copyright: © Butterworth-Heinemann 1993
  • Published: November 8, 1993
  • Imprint: Butterworth-Heinemann
  • eBook ISBN: 9781483193861

About the Author

J. C. Jarillo

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