It is important to note that the key difference between
inter-firm networks in the management literature and
inter-organizational networks in public administration or
policy literature is the role of dominant players. The
process of creating a meaningful and effective network
in public administration is directly linked to the ability
and the willingness of the state to coordinate various
activities while maintaining the structural or organizational
integrity of governing system. In comparison,
bilateral and trilateral coordinating mechanisms are
often the focus of research in the management literature.
Thus, an inter-organizational or inter-societal network is
a mode of regulating interdependence between agencies
and other societal actors which is different from the
aggregation of these units or coordination through market
signals. Table 2 summarizes key characteristics of
both bureaucratic and network governance modes.