The Multimedia Industry: Networks and Regional Development in a Globalised Economy

At the intersection of economic and social sciences, a specific type of research literature has developed, emphasising the embeddedness of economic activities in social contexts (see, e.g., Granovetter 1985; Grabher 1993a; Amin and Thrift 1995; Staber 1996b; Uzzi 1996). This literature is concerned with identifying the various institutional mechanisms by which economic activity is co-ordinated. It attempts to understand the circumstances under which the various mechanisms of co-ordination are chosen, and is interested in comprehending the logic inherent in the different co-ordinating mechanisms. The importance of networking of economic actors is one of the central topics in these discussions (cf. Hage and Alter 1997). Embeddedness in social structures may explain why network arrangements may persist in situations where, at first glance, other forms of governance (such as open markets) may appear more efficient. Mutual trust, social expectations and the forces of tradition may be powerful mechanisms for overriding opportunistic motives preventing the breakdown of co-operative relationships. So far, however, only little research has been done on the specific effects of certain types of networking of actors. Moreover, technological progress and changes in the global economic system cause us to analyse the question of the effects of certain network-like ties over and over again. In other words, and following Granovetter (1973), the question which ties are strongest remains to be constantly answered anew in relation to the specific research object.