Governance and social control mechanisms in organizational networks

Abstract

In this paper a small and medium size firm’s network governance structure and social mechanisms of coordination were studied in the light of the model proposed by Jones et al. (1997). The governance is considered a capable tool to regulate any instability originating from divergences, trying to keep the harmony and to strengthen the trust ties within the inter-organizational networks. A case study data analysis was carried out. In so doing, the associated members and the network’s manager were interviewed. The dynamics of the network reveals some practices and elements linked with social control mechanisms such as actor’s reputation, entrant members restrict access, macro-culture and the collective sanctions over individual members. By the interpretive exploitation of these questions one can say that, in this case, these mechanisms were a viable alternative of network governance.