The type of interdependence, whether they are a vertical
type or a horizontal type, has influence the way
they coordinate activities. A complementary network
based on vertical interdependence can relatively easily
specify the rules and boundaries of each member contribution
to the network, minimizing the unintended or
intended loss originating from opportunistic behaviors.
It is harder to set such boundaries in a horizontal network
based on parallel interdependence. This is because
a network based on horizontal interdependence requires
more operations (decisions) being pooled and make
shared decision making more likely. This is particularly
true in highly uncertain and volatile environments. This
implies that in the public sector setting where there are
more horizontal networks than vertical ones, there are
likely be more differences of opinions. In particular, the
addition of advocacy NGOs and community-based organizations
with a culture of deep suspicion of the state
elitism will create more transactional hazards in the
decision making process. This confirms an important
contribution Park (1996) made when he stated that
“even though complementary benefits have driven
cooperative networks, there still remains the possibility
of rivalry in networks and the effectiveness depends on
the type of control mechanism in place.