HIERARCHIES AND NETWORKS: COMPARATIVE ADVANTAGES OR DIVERSIFICATION?
The paper analyzes the two main approaches to the phenomenon of systems diversity: diversity as defect that must be eliminated by specialization and diversity as a merit, providing systems’ sustainability and flexibility. The size of single-purpose systems is constrained by market size only, a broad specialization objectively prevents the system from being small. It is shown that for any system organizing diversity in networks is more preferred strategy than strict implementing of comparative advantages within the hierarchies.
Keywords: comparative advantages, networks, hierarchies, firms, diversification
Issue: 12, 2012
Pages: 61 — 64
Downloads: 958