Formalizing in business networks as a tool for industrial policy

The purpose of this paper is to examine the issue of “formalization” in business networks as an instrument of industrial policy. Formalization in business networks is not a debated topic but it can affect organizational and inter-organizational dynamics considerably. The aim of the paper is to understand if the introduction of a normative tool that enhances formalized networks can be effective to promote network aggregations among SMEs. Second, the aim is to understand if this formalization supports good-working networks, i.e., capable to introduce new products or to enter new markets/customers.