Introduction

How are networks governed? What are the coordination processes that underlie networks? Where does leadership reside in networks of interdependent organisations? These are a few of the key questions that need to be examined if a deep appreciation of the networked economy is to be understood. Unlike hierarchies, with their apparently clear lines of accountability and responsibility, networks are characterised by a complex array of interconnections that occur in a seemingly random manner. How then can we make sense of how resources are organised, and how can these connections be managed for value to be created?

These questions are pertinent to understanding the organisation of tourism destinations, with their groupings of related organisations within a geographic proximity forming networks of interdependence. Three significant features characterise these systems. First, destinations that attract large visitor numbers have a diversity of complementary firms, forming what Leiper (1990) describes as partially industrialised systems. Alongside the core attractions that pull visitors to a place are service activities such as food, accommodation and transport. Comprehensive destinations also have a variety of additional secondary attractions that add value to the destination stay, and have strong interactions with public and governmental agencies. This diversity adds complexity and texture to the network through its specialisation of niche products. The second feature is the 'comings and goings' among visitors and suppliers. Greffe (1994) argues that this process of movement from partner to partner necessitates the organisation of supply in loosely interdependent networks in order to provide the tourist experience. These 'comings and goings' can be horizontal as supplier interacts with supplier; vertical as a supplier connects with government, research institutes, or industry associations, and diagonal through cross-industry interaction. These 'comings and goings' also include the tourist visitors as they connect and pass information to each other (horizontal), to other organisations (vertical) and to other industrial sectors (diagonal).