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The business network: successful or transitional form of organization

The business network, therefore, appears to be the organizational form combining flexibility, flexibility, richness and dynamism. In fact, for several authors (Frery, 1997; Livian, 1998; Ettighoffer, 2000), this form of organization, which they call network, virtual enterprise, constellation, or other, becomes a new ideal type which, according to the authors, will establish itself as the dominant mode of organization in the decades to come.

Nevertheless, the construction of this meshed organizational space “presents the company with the oldest organizational problem there is the construction of a zone of autonomy and the delegation of the entrepreneurial mission” (Hatchuel, 1994). We find the classic problems linked to the links between knowledge/actors/power but whose acuteness proves to be exacerbated in the network configuration where the logic of competitiveness of the network and the distinctive strategies of the different companies confront each other. Therefore, we can question the conditions for the sustainability of the network organizational form. Working in a network with external partners without a hierarchical or transactional relationship corresponds to a strategic choice which can be compared to a departure from traditional development. The determinants of this choice most often come under a resource-based analysis, as we will explain in the first part of this communication.

However, this bifurcation does not prove to be irreversible, and the examination of the evolution of business networks highlights a life cycle whose more or less distant outcome is reflected in the alternative separation or absorption (Jolly, 2001 ).

From the in-depth analysis of four networks, we were able to verify that the network organizational form does not represent a definitive form of organization but a contextual and dated state. Faced with these observations of evolution, we wanted to understand this life cycle and determine what are the bifurcation factors which lead, at a given moment in their history, companies to choose network cooperation and then, at another moment, return to a more integrated capitalistic form.

The first section of this communication presents the main lines of reflection on the development of business networks: characterization of business networks, networks as a dominant mode of organization, and the factors determining the choice of cooperation within a network.

The analysis of the life cycle of four business networks will be the subject of the second part. After presenting the methodology and the scope of the study, we will analyze the management methods of intangible resources implemented in the networks, the key factors of network sustainability, as well as the factors triggering the abandonment of cooperation for a more classic capitalistic form.