In particular close attention is paid to theoretical
issues surrounding the network governance and the
impact on traditional bureaucracy. In addition various
types of (policy) networks operating in the public sector
and the main characteristics are examined. The integrate
transaction cost economics and social network theories
are sought to derive at conditions under which certain
networks work better than others in terms of governance
effectiveness. Other sustainability issues and network
management issues are raised in the conclusion and policy
recommendations. However, the political economy
of networks such as why network notions were quickly
adopted by public managers and politicians and the
influence the prevailing ideology of neo-liberal thinkers
has had on modern administrative states are assumed to
be beyond the scope of this paper.2