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Network Knowledge and Network Routines: Negotiating Activities between Shipowners and Shipbuilders

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  • Gordon Boyce

Abstract

This article extends transaction cost economics by looking in detail at the sharp edge of exchange processes - negotiating activities. It also contributes to the literature exploring the properties of hierarchical organisations and networks. The article suggests that networks possess the equivalent to organisational knowledge. This 'network knowledge' consists of ethical prescriptions which guide behaviour as well as routines that are understood and followed by participants. Evidence drawn from correspondence and contracts between allied shipowners and shipbuilders reveals how they used network knowledge to structure negotiations in order to reduce on time-related expenses. In addition, industry-specific conventions, local customs, and regulations imposed by official and unofficial third parties generated further economies without creating rigidity. These findings arise from subjecting firm-level evidence to phase analysis.

Suggested Citation

  • Gordon Boyce, 2003. "Network Knowledge and Network Routines: Negotiating Activities between Shipowners and Shipbuilders," Business History, Taylor & Francis Journals, vol. 45(2), pages 52-76.
    • Handle: RePEc:taf:bushst:v:45:y:2003:i:2:p:52-76
    DOI: 10.1080/713999312
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    Cited by:

    1. McLean, Tom & McGovern, Tom & Davie, Shanta, 2015. "Management accounting, engineering and the management of company growth: Clarke Chapman, 1864–1914," The British Accounting Review, Elsevier, vol. 47(2), pages 177-190.
    2. Saleh, M. Abu & Ali, M. Yunus & Mavondo, Felix T., 2014. "Drivers of importer trust and commitment: Evidence from a developing country," Journal of Business Research, Elsevier, vol. 67(12), pages 2523-2530.

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