Size and Structure of Business Networks
| Project status | definitely finished |
| Project time | 01.05.2005- 30.04.2008 |
| Keywords | Business Networks; Structure |
In value added networks different companies on different levels of the value added chain are cooperating. From an academic and practical view the question comes up, to which extend the economic activities should be centralized in a value added network. The objective of this project is to examine the division of labor in value added networks (vertical structures) or in other words the allocation of competencies, functions as well as quantifiable, economic factors like costs and prices. In this project compositions regarding the optimal division of labor in respect to the theory of federalism as well as the application of networks in the co-operative finance association were published. In addition, a research paper regarding price maintenance as a tool for co-operation in value added networks as well as the uncertainty of demand and separated markets was released.
A theoretical model was developed, in order to characterize the optimal extent of integration rooms especially in value added networks. Beyond that, we tried to quantify the value of a company, which is part of a value added network.