Formation of Networks as a Form of Business Integration

Abstract

Abstract Economic development makes new demands to the quality of business management. One of the answers to this challenge is the creation and distribution of network organizations. Networks are a form of integration of independent business units. Economic motives for the formation of the network are to improve the efficiency of resource use members of the network and gaining access to the resources of the other participants of the network. Feature of the interaction within network is that members of the network are connected not only relations of cooperation, but also competition. This makes the network potentially unsustainable. There is a high risk of decay of network. Rid of it requires the use of special methods of management. They should take into account the specifics of networks as management objects. The study shows that the performance of the network will grow, if on the basis of the consent of all the participants in it will create a single focal point. The main objective of this center is to coordinate the actions of the participants and the formation of the optimal composition of the network. In the network management is recommended, in addition to formal contracts, to take into account the informal rules of network availability. To increase their effectiveness suggest measures for their gradual formalization. It is recommended, in particular, to develop and to fix the agreement between members of the network distribution mechanism between benefits, costs and risks.