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Social Capital, Institutions and Collective Action Between Firms

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Author Info
A. Arrighetti ()
G. Seravalli
G. Wolleb

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Abstract

This work is based on the hypothesis that explanation of collective action between firms requires partly different variables from that used in explaining collective action between individuals. In order to look at the problem of what determines collective action, a model has been built using alongside social capital, the historical tradition of collective action and the activism of institutional actors as explicative variables of associationism between firms. The empirical results confirm the theoretical hypotheses put forward in the first part of the paper. First, social capital, institutional activism and experience accumulation, all together, enhance the propensity to collective action between firms. Each variable plays a significant role in explaining inter-firm co-operation. Secondly, these variables, however, affect the behaviour of small firms while the large ones appear to follow a different pattern of conduct. Thirdly, the empirical findings seem also to suggest that social capital and institutional proactive initiative produce synergic effects on collective action. The two variables reinforce each other in their effects on co-operation. Finally, the positive correlation between social capital and institutional initiative emerging from the empirical results suggests that an increase in the endowment of social capital tends to rise the level of institutional activity and the other way round.

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Publisher Info
Paper provided by Department of Economics, Parma University (Italy) in its series Economics Department Working Papers with number 2001-EP08.

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Length: 40 pages
Date of creation: 2001
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Handle: RePEc:par:dipeco:2001-ep08

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Keywords: social capital economic institutions firms co-operation

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References listed on IDEAS
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  1. Molinas, JoseR., 1998. "The impact of inequality, gender, external assistance and social capital on local-level cooperation," World Development, Elsevier, vol. 26(3), pages 413-431, March. [Downloadable!] (restricted)
  2. A. Arrighetti & G. Seravalli, 2000. "Institutions and co-ordination costs," Economics Department Working Papers 2000-EP07, Department of Economics, Parma University (Italy). [Downloadable!]
  3. Woolcock, Michael & Narayan, Deepa, 2000. "Social Capital: Implications for Development Theory, Research, and Policy," World Bank Research Observer, Oxford University Press, vol. 15(2), pages 225-49, August.
  4. A. Arrighetti & A. Guenzi, 2000. "Institutions and collective actions between firms," Economics Department Working Papers 2000-EP05, Department of Economics, Parma University (Italy). [Downloadable!]
  5. Ostrom, Elinor, 1996. "Crossing the great divide: Coproduction, synergy, and development," World Development, Elsevier, vol. 24(6), pages 1073-1087, June. [Downloadable!] (restricted)
  6. La Porta, Rafael, et al, 1997. "Trust in Large Organizations," American Economic Review, American Economic Association, vol. 87(2), pages 333-38, May. [Downloadable!] (restricted)
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  7. Sakakibara, Mariko, 1997. "Evaluating government-sponsored R&D consortia in Japan: who benefits and how?," Research Policy, Elsevier, vol. 26(4-5), pages 447-473, December. [Downloadable!] (restricted)
  8. George A. Akerlof & Rachel E. Kranton, 2000. "Economics And Identity," The Quarterly Journal of Economics, MIT Press, vol. 115(3), pages 715-753, August. [Downloadable!] (restricted)
  9. North, Douglass C, 1991. "Institutions," Journal of Economic Perspectives, American Economic Association, vol. 5(1), pages 97-112, Winter. [Downloadable!] (restricted)
  10. Narayan, Deepa & Pritchett, Lant, 1997. "Cents and sociability : household income and social capital in rural Tanzania," Policy Research Working Paper Series 1796, The World Bank. [Downloadable!]
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  11. Sachwald, Frederique, 1998. "Cooperative agreements and the theory of the firm: Focusing on barriers to change," Journal of Economic Behavior & Organization, Elsevier, vol. 35(2), pages 203-225, April. [Downloadable!] (restricted)
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