A Dynamic Model for the Network Formation and Structures in Enterprises

A network is an organizational phenomenon and a network among enterprises is an organizational network formed by special relationships such as economic activities and benefits. Network structures in enterprises help in information sharing, communicating and innovating among the organizations. Therefore network structures play an important role in the achievements of economic activities. The static model for the network formation and structures in enterprises, built by Jackson and Wolinsky, is extended to a dynamic model by the authors. The formation of a network in enterprises is analyzed and how the formation process affects the establishment of network structures is explored. The tendencies of network structures in enterprise cooperation are pictured in Internet times.