This chapter develops a typology of inter-organizational networks based on the key dimensions of organizational interdependence and network durability. This helps to place the network literature in context by suggesting that network features and processes vary in different types of networks, and have different implications for performance. Secondly, there is an extended discussion of “embedded” networks found in East Asia. A “micro-typology” of such embedded networks is developed, based on the dimensions of formalization of ties and networking scope. Thirdly, taking a strategic perspective on the role of the board of directors, it is suggested that in the context of achieving more effective governance, (interlocking) directors' roles should differ based on the type of network in which they are engaged. This chapter represents an attempt to operationalize a key conclusion of chapter 10, on the need to better understand directors' strategic roles rather than the mostly fruitless attempt so far of attempting to relate structural board features to organizational performance.

At the turn of the twentieth century, Max Weber believed that the spread of bureaucratization was largely fostered by increasing competition between capitalist firms (DiMaggio and Powell 1983). Intensifying competition spurred on by new information and communication technologies has been encouraging a different phenomenon: the creation of various types of inter-organizational networks. Whereas the prime objective of bureaucratization was efficiency, network creation can aim towards increasing innovation, gaining access to new markets, sharing network resources, reducing cycle times, decreasing transaction costs, managing uncertainty, or lobbying regulatory bodies.