Control and coordination in B2B networks

B2B companies operate within social networks consisting of firms and the ties that connect them. Being embedded in networks has both advantages and disadvantages. Social networks can support mechanisms that curb exchange partners' opportunistic tendencies. Social networks can also foster cooperation and help coordinate different parties for the sake of mutual gain. However, apart from offering control and coordination benefits, network structures can also intensify competition, foster freeriding on others' efforts, and inhibit economic effectiveness.