Transition to Network Governance in Advanced Small Core and Large Network Industries in the Electro-Optical Industry

In this paper, Sapa's transition from hierarchical governance to network governance by creating a set of growing firms and developing ″small nuclei and large networks″ in the electro-optical industry has been narrated. Based on the facts and reports of sapa′s performance¸ it can be said that this transition has been done with an acceptable rate of success and has achieved relative stability. In this study¸sapa organizational changes in three periods: 1) the formation of the uncleus¸ 2) the growth of innovation and networking¸ and 3) the maturity of the uncleus and network in the light of the concepts of governance¸ networking and complexity are studied with a ″strategic narrative approach″ .The findings of this study show that Sapa, with its mobilizing and persuasive leadership, product-oriented innovation groups, technological spin offs and the integration of hierarchical and network systems, has been able to overcome the chalenges of this transition and achieved a good position in the country′s electro-optical industry.