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A firm is a type of organizational arrangement often involved in interorganizational networks. Networks are the outcome of individuals in firms working together in cooperative groups.Individuals firms establish both formal and social relationships. The individuals develop lasting relationships because they share time,interests, goals, industrial,geographical or someother type of relatedness. Shared goals and interests of the relationship become an observable unit built upon various constructs. Networks typically involve one orseveral different types of relationship. The results indicate that relationships are based upon a long term orientation. Secondly, relationships develop from certain processes before interaction is initiated. These processes involve the influence of cooperative motives to enter interorganizational networks and preferences upon which potential partners are selected. Furthermore, the initial processes involving motives and preferences expand to include the development of relationships based on friendships, interpersonal commitments, reciprocity and trust. The ultimate outcome of this process is stability and maturity.