Analysis on'the governance models of network organizations (ID: 8-060)

Network governance regards as new governance formation, which is neither the corporate governance of hierarchical firms, nor the form of market governance. The article utilized two variables: one is the resource appropriable relations, which includes horizontal appropriation and vertical appropriation that impact the choice of network governance models by differentiation on risk control and asset interests; the other is coordination manners, which includes bilateral and trilateral coordination manners that lead to differentiation in the coordination cost of network governance, models. They combine in pairs to divide the network governance into four basic governance models. These four models are respectively: model I is horizontal resource appropriation with bilateral coordination; model II is horizontal resource appropriation with trilateral coordination; model III is vertical resource appropriation with bilateral coordination and model IV is vertical resource appropriation with trilateral coordination. Four governance models have differential characteristics in the relational specific assets, the information sharing, the incentive affects, the sharing of interest and value. The article has achieved several findings: governance model If has more stability and coordination than I, and governance model III hag more efficient than IV Moreover, the combination of several basic differential, governance models will form hybrid models. In practice, the governance,,.. models have be applied to various network patterns, as Cartels, R&D consortia, Franchises, Strategic alliances, Small-medium firm's clusters, Virtual enterprise, Industrial associations, Regional socioeconornic alliance and subcontracting networks.