Supply networks: Genesis, stability and logistics implications. A comparative analysis of two districts

This study concerns networks whose elements are made up of manufacturing units linked by supply relationships. The authors, comparing the evolution of two industrial districts, analyse the variables that determine or impede the formation of strong linked buyer-suppliers systems, influence the network stability and fashion the logistic pipeline mapping and management. Three central propositions are discussed: (a) the setting up of a supply network process is connected to the presence of operational interdependencies between the units of the supply chain; (b) the stability and effectiveness of a supply network is closely bound to the ability, on the part of the core-firm, to plan the governance structure of the supply relationship; and (c) the product structure and the nature of the process influence the networking process.