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Sustaining Networks

Author

Listed:
  • J. Carlos Jarillo

    (IESE (Instituto de Estudios Superiores de la Empresa), Avenida Pearson, 21, 08034 Barcelona, Spain)

  • Joan Enric Ricart

    (IESE (Instituto de Estudios Superiores de la Empresa), Avenida Pearson, 21, 08034 Barcelona, Spain)

Abstract

As we accept the importance of the laws of competition in formulating strategy, we are realizing that cooperation among firms is at the root of many management success stories. Networking arrangements entail cooperation, and both business policy and microeconomics are much better prepared to deal with competition. Cooperation is indeed possible for profit-maximizing business enterprises. It may be an efficient arrangement and can be sustained over the long run. Some basic models from game and agency theory shed light on real-life cooperative arrangements. A long-term outlook and the ability to elicit trust are seen as key ingredients of a successful network.

Suggested Citation

  • J. Carlos Jarillo & Joan Enric Ricart, 1987. "Sustaining Networks," Interfaces, INFORMS, vol. 17(5), pages 82-91, October.
  • Handle: RePEc:inm:orinte:v:17:y:1987:i:5:p:82-91
    DOI: 10.1287/inte.17.5.82
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    Cited by:

    1. Theresa M. Welbourne & Manuela Pardo-del-Val, 2009. "Relational Capital: Strategic Advantage for Small and Medium-Size Enterprises (SMEs) Through Negotiation and Collaboration," Group Decision and Negotiation, Springer, vol. 18(5), pages 483-497, September.

    More about this item

    Keywords

    games/group decisions: cooperative;

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