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Partners Forever? An Empirical Study of Relational Ties in Two Small-firm Clusters

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  • Udo Staber

    (Department of Management, University of Canterbury, Ilam Road, Christchurch, 8020, New Zealand, udo.staber@canterbury.ac.nz)

Abstract

Many researchers take as axiomatic the proposition that economic action in clusters is embedded in dense, durable and trust-based social networks. It is suggested here that the bias towards high-trust, enduring relations obscures the competitive dynamics of networks, even where co-operation can be identified. Drawing attention to the competitive motives underlying the construction of social networks, an investigation is made into the duration and brokering of dyadic relations in business owners’ advice networks. The analysis of 668 dyadic ties in a population of 113 small business owners in two textile and clothing clusters in Germany reveals considerable variation in the duration of social relations and the likelihood that they were formed through third-party brokers, many of whom were direct competitors creating more ephemeral links. The findings suggest that ‘marketless’ conceptions of social networks in clusters need to be balanced with a stronger concern for the role of competition in the social embeddedness of small firms.

Suggested Citation

  • Udo Staber, 2011. "Partners Forever? An Empirical Study of Relational Ties in Two Small-firm Clusters," Urban Studies, Urban Studies Journal Limited, vol. 48(2), pages 235-252, February.
    • Handle: RePEc:sae:urbstu:v:48:y:2011:i:2:p:235-252
    DOI: 10.1177/0042098009360679
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    References listed on IDEAS

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