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Governance of Supply Chains for Sustainability: A Network-Based Approach
Abstract
The main objective of this chapter is to shed some light on governance and membership strategies of network organizations. Today's business environment compels firms to join forces in order to be competitive and sustainable. However, the success of the networks mainly depends on their network composition and how they are governed. In this chapter, the author proposes some strategies and the proper governance structure facilitating these strategies by taking the effects of severity of resource acquisition challenges and external legitimacy of whole network organization into consideration. The arguments are based on Resource Based Theory and Stakeholder theory. Moreover, the author of this chapter suggests a counter example for the claim propounded by Provan and Kenis (2007) that the evolution of network governance from more formalized one to the less formalized one is unlikely. From these respects, the chapter contributes to the literature since mentioned points have been rarely discussed.
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