network organization

Definition

A group of legally independent companies or subsidiary business units that use various methods of coordinating and controlling their interaction in order to appear like a larger entity. In a business context, three main types of network organization are typically seen: (1) internal where a large company has separate units acting as profit centers, (2) stable where a central company outsources some work to others, and (3) dynamic where a network integrator outsources heavily to other companies.

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