I In recent years, there has been a considerable amount of research on organizational
practices and arrangements that are network-like in form. This diverse literature shares a
common focus on lateral or horizontal patterns of exchange, interdependent flows of
resources, and reciprocal lines of communication.

Network forms of organization-typified by reciprocal patterns of communication and
exchange-represent a viable pattern of economic organization. Networks are contrasted with
market and hierarchical governance structures, and the distinctive features of networks are
highlighted. Illustrative examples of network arrangements in craft and high-technology
industries, in regional economies, and in formerly vertically integrated fields are presented.
The paper concludes with a discussion of the conditions that give rise to network forms. In …