Abstract
This paper aims to describe different governance mechanisms and the opportunities and contradictions related to their application in network management. Three general governance mechanisms: market, hierarchy and trust have been identified in previous studies. The study advances the discussion of the application of governance mechanisms by comprehensively describing four network relationships and their governance mechanisms. Additionally, the influence of governance mechanisms to SMEs is discussed.References
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Bennis, W., Slater, P., 1964. Democracy is inevitable. Harvard Business Review. (March–April).
Coase, R., 1937. The nature of the firm. Economica vol. 4, 368–405.
Daft, R., 1998. Essentials of Organization Theory and Design. South-Western College Publishing, Cincinnati, OH.
Dubois, A., Araujo, L., 2007. Case research in purchasing and supply management: Opportunities and challenges. Journal of Purchasing and Supply Management 13:3, 170-181.
Kohtamäki, M., 2005, Strategisen verkoston ohjaus: Toimittajien toimijoiden kokemuksia kärkiyritysten ohjauksessa. Ph.D. Thesis. Acta Wasaensia. Vaasa. In Finnish.
Ouchi, W., 1980. Markets, bureaucracies and clans. Admin. Sci. Quarterly 25 (March), 125–141.
Williamsson, O., 1975. Markets and hierarchies: Analysis and antitrust implications.Free Press. New York.
Yin, R.K., 2003. Case Study Research: Design and Methods. Third ed. Sage, Thousand Oaks, CA.
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