Exchange and Power in Networks of Interorganizational Relations*

An extension of the exchange model for the analysis of interorganizational relations is developed, incorporating into the model recent developments in exchange theory. Organizational interactions are viewed as networks of exchange relation, and various forms of interorganizational activity such as merger and coalition or alliance formation are analyzed in relation to power and position in the network. Linkages between various types of exchange networks and what economists refer to as market structures are examined. Finally, previous criticisms of exchange formulations are reviewed, and directions for future theoretical and empirical work concerning networks of interorganizational relationships are discussed.