Home  Journals  Economic Analysis: Theory and Practice  10(481) - 2018 October

Network potential assessment: Evidence from the information technology industry

Vol. 17, Iss. 10, OCTOBER 2018

Article PDF Version

Received: 18 July 2018

Received in revised form: 31 July 2018

Accepted: 29 August 2018

Available online: 31 October 2018

Subject Heading: THEORY OF ECONOMIC ANALYSIS

JEL Classification: D22, L14

Pages: 1819–1834

https://doi.org/10.24891/ea.17.10.1819

Subject The article investigates the network structures, which represent an adequate method of flexible cooperation between firms.
Objectives The study focuses on developing a factor model of network potential as a methodological basis to maximize the full realization of cooperation opportunities of firms, and on empirical verification of the model, using the IT industry case study.
Methods Works on institutional economic theory, resource approach, economic sociology, and others serve as a theoretical basis of the model. We employ statistical techniques to analyze empirical data.
Results We developed a network potential model that rests on the analysis of factors from the perspective of three structural elements, which exert setting, coordinating and affirming influence on development and function of the system of network organization of interfirm interaction. On its basis, we perform an empirical assessment of organizational factors of network potential, using the IT sector enterprises case study.
Conclusions The model approach to network potential extends a toolkit for factor analysis of effective inter-firm interaction, enables quantitative assessment of interrelations between factors and management of network organization development.

Keywords: network organization, network potential, interfirm interaction, IT industry

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