Abstract
The network contract, recently introduced in the italian legislation, aimed at enhancing collaboration among enterprises to increase their potential for innovation, research and development. The economic analysis of inter-firm cooperation ,through networks, shows an alternative to vertical integration, Introducing a flexible model for fostering competitivness .
This study examines comparatively various form of collaboration among firms of different sizes, showing how a network contract is a new tool for enterprises’growth and cost reduction.
It permits the governing of vertical disintegration, without increasing fragmentation and transaction costs and allow firms of small size to benefit from resources complementarities, favoring division of labour in the industrial clusters.
Members of a network contract have often pre-established relationship and are located in classical marshallian industrial district.
This work shows that flexible collaborative systems, may be successful in overcoming dimensional limitations and difficult economic conditions.
The internal governance of the network contract push the firms to improve their industrial organization.
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