What is a networked business

Abstract

1Supported by the Netherlands Organization for Scientific Research (NWO) under contract number 638.003.407 (Value-based Business-IT Alignment). Due to increasing competitive pressure in their market, many enterprises are implementing changes to the way they conduct business. These changes range from implementing new IT, to redesigning the structure of the organization and entering into all kinds of cooperations with other enterprises, forming what we call a ‘networked business’. In this paper, we try to explain the origin of the networked business from three different, but related, perspectives: resource de-pendence, transaction cost and IT impact. We also explore some terms that are used to describe interorganizational structures to find their principal compo-nents in an attempt to determine relationships between them and find a broad

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