Management of network organizations: Analysis of economic characteristics

Aim. The work aimed to identify the specifics of managing network organizations, taking into account their economic characteristics. Objectives. The work analyzes theoretical and methodological approaches to structuring organizations and inter-organizational interaction, identifies the distinctive features of network organizations that determine the characteristics of their management, and proposes recommendations for applying network approaches in the management of modern Russian organizations. Methods. The work employed systems and institutional analysis, organizational design, and retrospective and logical approaches, as well as structural modeling. Results. In the study, theoretical ideas about the specifics of network organization management determined by their economic characteristics were expanded. Networks represent a hybrid form of interaction organization in the economy, which is intermediary between market and hierarchical structures. They inherit the advantages of the market and hierarchy, determining a compromise combination in their properties of flexibility and purposefulness of activity. Moreover, the hybrid nature imparts network organizations with new properties that hinder from applying traditional management methods to them. Consequently, its tools have to be developed specifically for this type of organization. Conclusions. Network (hybrid) cooperation of organizations should be considered long-term cooperation of independent firms aimed at joint creation of value and distribution of benefits. State organizations can also be participants in network structures. Their involvement in the network reduces the risks of economic activity and ensures a more complete compliance of the models of network functioning with the state goals. It is advisable to use the potential of intercompany cooperation to solve current problems of economic development of the Russian Federation (RF), primarily in the field of import substitution.