Chapter

Dynamics of Overlapping Networks and Strategic Actions by the International Firm

Lars‐Gunnar Mattsson

in The Dynamic Firm

Published in print September 1999 | ISBN: 9780198296041
Published online November 2003 | e-ISBN: 9780191596070 | DOI: http://dx.doi.org/10.1093/0198296045.003.0011
 Dynamics of Overlapping Networks and Strategic Actions by the International Firm

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Stresses the embeddedness of the individual firm in the network of firms with which it necessarily has ties; this ‘markets‐as‐networks’ approach interprets the generic governance structure for production systems to be multidimensional exchange relationships between actors, typically firms. A key notion here is one of coordination and interdependence in these long‐term—but by no means static—relationships, but in turn, it is argued, there are dynamic, indirect, and direct interactions between such relationships, and in a fundamental way, the relationships determine the constraints and opportunities under which the firm operates. The markets‐as‐networks approach is thus designed to incorporate both change and stability. The issue of different types of overlap between networks is singled out for scrutiny, especially as it relates to the international context. Applying these constructs, the author finds the approach to be especially well suited to improve understanding of the dynamic interaction between the international firm, and the international markets and industries.

Keywords: change; companies; dynamics; embeddedness; exchange relationships; firms; governance structure; industries; interactions; international firms; international markets; markets; markets as networks; networks of firms; overlapping networks; production systems; stability

Chapter.  7185 words.  Illustrated.

Subjects: Microeconomics

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