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The Barcelonnettes: an Example of Network-Entrepreneurs in XIX Century Mexico. AnExplanation Based on a Theory of Bounded Rational Choice with Social Embeddedness

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  • Gonzalo Castañeda

    (Departamento de Economía Universidad de las Américas - México)

Abstract

A theory of network-entrepreneurs or ‘spin-off system’ is presented in this paper for the creation of firms based on the community’s social governance. It is argued that firm’s capacity for accumulation depends on the presence of employees belonging to the same social/ethnic group with expectations of ‘inheriting’ the firm and becoming entrepreneurs once they have been selected for their merits and loyalty towards their patrons. Such accumulation is possible because of the credibility of the patrons’ promises of supporting newcomers due to high social cohesion and specific social norms prevailing in the community. This theory is exemplified through the case of the Barcelonnettes, a group of immigrants from the Alps in the South of France (Provence) who came to Mexico in the XIX Century.

Suggested Citation

  • Gonzalo Castañeda, 2004. "The Barcelonnettes: an Example of Network-Entrepreneurs in XIX Century Mexico. AnExplanation Based on a Theory of Bounded Rational Choice with Social Embeddedness," Working Papers 0402, Departament Empresa, Universitat Autònoma de Barcelona, revised Nov 2004.
    • Handle: RePEc:bbe:wpaper:0402
    as

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    References listed on IDEAS

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    3. Greif, Avner, 1993. "Contract Enforceability and Economic Institutions in Early Trade: the Maghribi Traders' Coalition," American Economic Review, American Economic Association, vol. 83(3), pages 525-548, June.
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