The importance of governance in business models

Abstract

Interorganizational relationships help firms to create value by combining resources, developing knowledge resources and facilitating access to foreign markets. In particular, one should highlight the importance of relationships from the perspective of knowledge creation and sharing. The main theoretical paradigms used to explain the reasons behind creation of interorganizational interrelationships are as follows: transaction costs economics, resource dependence, stakeholder theory, and learning theory. Governance may be important component of interorganizational networks. The impact of governance depends on the type of network. The successful adoption of a particular form of governance in a network may be attributed to the following factors: trust, size of network, goal congruence among the network members, the nature of the task of the network.

Keywords

• organizations
• governance
• interorganizational relationships
• networks
• effectiveness