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Proceedings of the International Association for Business and Society

Volume 10, 1999

Proceedings of the Tenth Annual Meeting

Magali Delmas
Pages 453-464

Green Strategic Networks
A Dynamic Capability and Transaction Cost Approach

Based on transaction cost economics and the dynamic capability approach, this paper proposes a theoretical perspective on Green Strategic Networks. Green Strategic Networks involve several types of partners (suppliers, competitors, regulators, green associations, and research institutions) with the objective of developing environmental technologies. Finns seem still reluctant to engage in Green Strategic Networks fearing exposure of their strategic assets to third parties that may involve high transaction costs resulting from opportunistic and antagonistic behavior. This paper shows the advantages of such networks to develop sustainable and innovative organizations. It demonstrates how trust building could decrease transaction costs according to the type of resources and capabilities allocated to the network as well as the type of governance structure at stake.

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