What is a networked business?

Due to increasing competitive pressure in their market, many enterprises are implementing changes to the way they conduct business. These changes range from implementing new IT, to redesigning the structure of the organization and entering into all kinds of cooperations with other enterprises, forming what we call a ‘networked business’. In this paper, we try to explain the origin of the networked business from three different, but related, perspectives: resource dependence, transaction cost and IT impact. We also explore some terms that are used to describe interorganizational structures to find their principal components in an attempt to determine relationships between them and find a broad and precise, new definition of the term ‘networked business’.