Post Tagged with: "network efficiency"

Collaboration Culture, Complexity, Decision Making/Problem Solving, Emergence/Self-organization, Group Performance, Network Design

Networks, enterprises and transaction costs

1_Colaboracion grupos_Eric Constantineau FlickrIn this post I would like to share an idea that seems to me quite complex: Are networks better than companies? Is it true that the “transaction costs” have collapsed so much to make the “network” a superior alternative to the “enterprise”?

Well, once again, let me say “that depends”: The networks are not always more agile than firms. It is rather the opposite: usually it happens that they involve a great complexity of relationship management. Yes, a robust and well-oiled network can be more agile than a versatile firm; okay … but to achieve this is not easy at all.

It hurts me to recognize that networks that work well and are agile, are still an exception rather than a rule. They serve to share ideas and to promote the exchange of knowledge, but when it comes to make a joint effort and carry out the distributed work, a lot of inefficiencies jump out.

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by × August 11, 2013 × 0 comments