Localised co-ordination and trust. Tentative findings from in-depht case studies

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Localised co-ordination and trust. Tentative findings from in-depht case studies

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Mark Lorenzen

Abstract

The paper argues that the furniture industry, because it is low-tech, mature, and thus easy to grasp technology-wise, is an excellent case for investigating some basic notions on the rise within the economics of organisation. The paper concentrates on the growing incidence of flexible co-operation arrangements between specialised, localised, furniture firms; the role of informal social institutions (such as norms; conventions; language; and trust) for co-ordination between such specialised firms; and the crucial importance of learning processes for bringing about this economic organisation as well as the social institutions that support it. The paper empirically investigates localised knowledge and competencies amongst Danish furniture producers. Empirical findings are presented illustrating the importance of geographical proximity and trust for co-operation and co-ordination between specialised furniture producers, and the importance of learning processes for the creation of trust.

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Paper provided by Department of Industrial Economics and Strategy, Copenhagen Business School in its series IVS/CBS Working Papers with number 98-9.

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Handle: RePEc:ivs:iivswp:98-9

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Find related papers by JEL classification:
D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
O31 - Economic Development, Technological Change, and Growth - - Technological Change - - - Innovation and Invention: Processes and Incentives
L68 - Industrial Organization - - Industry Studies: Manufacturing - - - Appliances; Other Consumer Durables

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Maskell, Peter & Malmberg, Anders, 1999. "Localised Learning and Industrial Competitiveness," Cambridge Journal of Economics, Oxford University Press, vol. 23(2), pages 167-85, March.
Other versions:
- Peter Maskell & Anders Malmberg, 1995. "Localized Learning and Industrial Competitiveness," UCAIS Berkeley Roundtable on the International Economy, Working Paper Series 1092, UCAIS Berkeley Roundtable on the International Economy, UC Berkeley. [Downloadable!]
Bengt-Åke Lundvall, 1996. "The Social Dimension of the Learning Economy," DRUID Working Papers 96-1, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies. [Downloadable!]
Richard N. Langlois, 1994. "Do Firms Plan?," Industrial Organization 9406002, EconWPA. [Downloadable!]

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