Working Paper Series, Department of Industrial Economics & Strategy, Copenhagen Business School
No 98-9:
Localised co-ordination and trust. Tentative findings from in-depht case studies.
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.
Keywords: Co-ordination; trust; governance; institutional learning; proximity; industrial districts; (follow links to similar papers)
JEL-Codes: D23; O31; L68; (follow links to similar papers)
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