Network governance as source of competitive advantage: A conceptual framework and research propositions

The paper takes the mode of organizing exchange embedded in the New Economy, network governance, as its subject matter, and attempts to answer why the network governance may be source of competitive advantage of a firm. As such, the presented in the background of transaction cost economics approach, focuses on hybrid governance structure to indicate the network governance. Furthermore, according to existed previous normative logic relationship among governance, strategy, contributing elements of values and competitive advantage, the association between network governance and competitive advantage is drawn. Finally, by means of VRIO framework, an analytical pattern used for sustainable value creation by strategic choices in the resource-based view (RBV), efforts are made to explain why the network governance is sufficient to be source of competitive advantage of a firm, and corresponding framework for research and propositions are deduced.