Hybrid Forms of Business Organization: The Interfirm Cooperation Perspective

Abstract

In the article the authors analyze and systematize the most common forms of business organization as well as methods of interfirm coordination. The causes of origination and transformation of various forms of integration, with their virtues and shortcomings, are examined. On the basis of historical and institutional analysis of organizational structures of a number of companies and business groups, the authors come to the conclusion that there is a tendency towards combination of various forms of integration. This refers to both the rigid forms of integration, within the logic of “possessory control”, and the soft ones based on cooperation advantages. The paper highlights that expansion of hybrid forms of business interaction calls for renewal of analytical tools and more profound understanding of foundations of economic power and added value distribution.