What is it about?
The paper addresses the challenges regarding the governance of small-firm networks. Some of these networks are composed of dozens of small firms and the network managers need to find the right set of governance mechanisms to make the cooperation work effectively. Our study shows that the right governance mechanisms may have important impacts on the performance of network members.
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Why is it important?
The design of a governance system is a critical success factor of cooperative endeavors such as small-firm networks. In this paper we show that the centralization of decision-making and the incentives to avoid free-riders directly influence the outcomes provided by a business network. This result is important because it helps business networks to succeed and support their members' competitiveness.
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This page is a summary of: The influence of network governance mechanisms on the performance of small firms, International Journal of Entrepreneurship and Small Business, January 2016, Inderscience Publishers,
DOI: 10.1504/ijesb.2016.075015.
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