A bottom up approach to evaluate risk in network environment

Abstract

Firms dependence on environment has been contended in various way one of the most suited is the collaboration among other firms in order to realize extra rents. Firm dependence on environment is particularly crucial in sector characterised by complex technology or complex product (product requiring an articulated supply chain) that make the market instable. In this scenario the alliance, whatever is the inter-organizational solution chosen, causes new forms of dependence that are the origins of network risks. In order to evaluate correctly the extra rents a long range perspective has to be assumed and a financial analysis has to be followed. To evaluate expected cash flows it needs to known the risk of the considered investment. This research wants to contribute in this interesting research area for theorists and practitioners being its objective to propose a complete analysis of the network risk aiming at collecting in an harmonious view several contributions present in literature in order to quantify this kind of risk.