Research On The Network Governance Mechanism Of Core Firm In Strategic Network

No firm could survive under the network environment. The success of Japanese Automobile Industry and Silicon Valley has led us to realize the importance of strategic network and attracted more and more scholars' interesting. In 1988, Jarillo published an article named On Strategic Network in Management Journal marking the beginning of strategic network research. Since then, lots of scholars following the research and the theory had been extended. Meanwhile, the theory of network governance has becoming increasing important. Jones published A General Theory of Network Governance in 1997. In this article, Jones identified network governance and provided four conditions for network governance which added a new condition to extended William theory.Because of the increasing importance of strategic network, my objective in this paper is to provide a network governance mechanism of core firm in strategic network a mechanism which under the core competency of core firm. By means of studying former researches, I integrate strategic network and network governance to form a feasible governance mechanism which composed of trust mechanism,coordination mechanism and integration mechanism. Then, I study the case of Toyota to demonstrate the practice f this mechanism and necessary attentions have to take when Chinese firm is going to adopt the mechanism.