Abstract
This paper aims to propose a novel approach to look at the formation of network of firms. We propose an economic model of strategic relationships among firms. The model treats firms as nodes in a network and analyses the equilibrium network structure. It recognizes the cost of setting up and maintaining relationship between firms. Unlike the previous research that analyses B2B networks after they are established, we look at the dynamics of how they come into existence and where they can be expected to converge. The paper provides conditions under which an exchange-based B2B is preferred to a peer-to-peer network. It also indicates the importance of asset specificity in the strategic network formation.
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Tomak, K., Xia, M. (2002). A Strategic Analysis of Exchange Based B2B Networks. In: Shaw, M.J. (eds) E-Business Management. Integrated Series in Information Systems, vol 1. Springer, Boston, MA. https://doi.org/10.1007/0-306-47548-0_16
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DOI: https://doi.org/10.1007/0-306-47548-0_16
Publisher Name: Springer, Boston, MA
Print ISBN: 978-1-4020-7178-2
Online ISBN: 978-0-306-47548-1
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