Antitrust & Competition Policy Blog

Editor: D. Daniel Sokol
University of Florida
Levin College of Law

Friday, December 31, 2010

Competition within Strategic Networks

Posted by D. Daniel Sokol

Heike Nolte, University of Puget Sound, University of Applied Sciences Emden-Leer addresses Competition within Strategic Networks.

ABSTRACT: Strategic networks originate from the access to additional resources without purchasing them. But don’t these kinds of cooperation imply risks for the involved firms, esp. for those to whose resources cooperating firms have access? This article aims to show the limitations of integration of resources into a strategic network for competition reasons.

This topic has gained importance due to the fact that revelation of internal business information is directly related to strategic networks and thereby might endanger the sustainability of the competitive position of an enterprise. Moreover, it is to question if each partner is interested in revealing its resources to the same extent. The analysis of this problem is based on the resource oriented approach of strategic management as well as on considerations of transaction costs. The issue is presented in three hypothesises which lead to the “Dilemma of Strategic Networks.”

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