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Network Governance

Author(s): Stefan Wuyts and Christophe Van den Bulte

Excerpt from the Handbook of Business-to-Business Marketing (Edited by Gary L. Lilien, Distinguished Research Professor of Management Science, The Pennsylvania State University and Rajdeep Grewal, Kenan-Flagler Business School, University of North Carolina, US). Complete book available at https://www.e-elgar.com/shop/handbook-of-business-to-business-marketing.

This chapter provides an overview of various network governance mechanisms in business markets, by discussing the control and coordination benefits as well as the constraints that result from firms and dyads being embedded in social networks. First, network control mechanisms are discussed that help firms monitor and steer the behaviors of their exchange partners. Second, the chapter covers how social networks can stimulate positive behavior and help align different parties for the sake of mutual gain. Third, a dark side of social networks is discussed.
colorful pawns connected by a network

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