Richard Whitley
- Published in print:
- 2007
- Published Online:
- January 2008
- ISBN:
- 9780199205172
- eISBN:
- 9780191709555
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199205172.003.0009
- Subject:
- Business and Management, Political Economy
This chapter analyses the growing significance of inter-firm networks and project-based firms in many industries, which some claim heralds major changes in dominant economic forms. Rather than ...
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This chapter analyses the growing significance of inter-firm networks and project-based firms in many industries, which some claim heralds major changes in dominant economic forms. Rather than assuming that all such enterprises are basically the same, the chapter distinguishes between four ideal types of project-based firms in terms of the singularity of their goals, on the one hand, and the separation and stability of the division of labour, on the other hand. These ideal types vary in their importance across subsectors with different output characteristics, such as appropriability, modularity, and technological cumulativeness, and processes, such as client involvement. They also are more or less likely to become prevalent in contrasting institutional environments, which means that the establishment of the Silicon Valley type of economic organization as the dominant form is improbable in many societies.Less
This chapter analyses the growing significance of inter-firm networks and project-based firms in many industries, which some claim heralds major changes in dominant economic forms. Rather than assuming that all such enterprises are basically the same, the chapter distinguishes between four ideal types of project-based firms in terms of the singularity of their goals, on the one hand, and the separation and stability of the division of labour, on the other hand. These ideal types vary in their importance across subsectors with different output characteristics, such as appropriability, modularity, and technological cumulativeness, and processes, such as client involvement. They also are more or less likely to become prevalent in contrasting institutional environments, which means that the establishment of the Silicon Valley type of economic organization as the dominant form is improbable in many societies.
Gary G. Hamilton and Robert C. Feenstra
- Published in print:
- 1998
- Published Online:
- November 2003
- ISBN:
- 9780198290964
- eISBN:
- 9780191596162
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0198290969.003.0004
- Subject:
- Economics and Finance, Microeconomics
The paper presents both a theoretical and an empirical argument that the concept of hierarchy in relation to business firms needs to be reconceptualized. In the theoretical discussion, a synthesis is ...
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The paper presents both a theoretical and an empirical argument that the concept of hierarchy in relation to business firms needs to be reconceptualized. In the theoretical discussion, a synthesis is developed between Ronald Coase's and O. E. Williamson's conception of a market/hierarchy dichotomy and M. Weber's distinction between economic power and authority. The authors hold that the authoritative aspects of hierarchies, especially within networks of firms, have independent effects on the formation of market economies. An empirical demonstration is given of the relevance of this reconceptualization in an analysis of the economies of South Korea and Taiwan. The two case studies show that two different types of authoritative interfirm networks, one vertically arranged (Korea) and the other horizontally arranged (Taiwan), substantially shape the performance of these economies.Less
The paper presents both a theoretical and an empirical argument that the concept of hierarchy in relation to business firms needs to be reconceptualized. In the theoretical discussion, a synthesis is developed between Ronald Coase's and O. E. Williamson's conception of a market/hierarchy dichotomy and M. Weber's distinction between economic power and authority. The authors hold that the authoritative aspects of hierarchies, especially within networks of firms, have independent effects on the formation of market economies. An empirical demonstration is given of the relevance of this reconceptualization in an analysis of the economies of South Korea and Taiwan. The two case studies show that two different types of authoritative interfirm networks, one vertically arranged (Korea) and the other horizontally arranged (Taiwan), substantially shape the performance of these economies.
Lars‐Gunnar Mattsson
- Published in print:
- 1999
- Published Online:
- November 2003
- ISBN:
- 9780198296041
- eISBN:
- 9780191596070
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0198296045.003.0011
- Subject:
- Economics and Finance, Microeconomics
Stresses the embeddedness of the individual firm in the network of firms with which it necessarily has ties; this ‘markets‐as‐networks’ approach interprets the generic governance structure for ...
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Stresses the embeddedness of the individual firm in the network of firms with which it necessarily has ties; this ‘markets‐as‐networks’ approach interprets the generic governance structure for production systems to be multidimensional exchange relationships between actors, typically firms. A key notion here is one of coordination and interdependence in these long‐term—but by no means static—relationships, but in turn, it is argued, there are dynamic, indirect, and direct interactions between such relationships, and in a fundamental way, the relationships determine the constraints and opportunities under which the firm operates. The markets‐as‐networks approach is thus designed to incorporate both change and stability. The issue of different types of overlap between networks is singled out for scrutiny, especially as it relates to the international context. Applying these constructs, the author finds the approach to be especially well suited to improve understanding of the dynamic interaction between the international firm, and the international markets and industries.Less
Stresses the embeddedness of the individual firm in the network of firms with which it necessarily has ties; this ‘markets‐as‐networks’ approach interprets the generic governance structure for production systems to be multidimensional exchange relationships between actors, typically firms. A key notion here is one of coordination and interdependence in these long‐term—but by no means static—relationships, but in turn, it is argued, there are dynamic, indirect, and direct interactions between such relationships, and in a fundamental way, the relationships determine the constraints and opportunities under which the firm operates. The markets‐as‐networks approach is thus designed to incorporate both change and stability. The issue of different types of overlap between networks is singled out for scrutiny, especially as it relates to the international context. Applying these constructs, the author finds the approach to be especially well suited to improve understanding of the dynamic interaction between the international firm, and the international markets and industries.
Stephen J. Kobrin
- Published in print:
- 1999
- Published Online:
- November 2003
- ISBN:
- 9780198296058
- eISBN:
- 9780191596209
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0198296053.003.0006
- Subject:
- Economics and Finance, International
Stephen Kobrin looks directly at the impact of globalization on the sovereignty of nation states. He, like Richard Lipsey in Ch. 3, sees globalization as the structural fusion of economic activity ...
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Stephen Kobrin looks directly at the impact of globalization on the sovereignty of nation states. He, like Richard Lipsey in Ch. 3, sees globalization as the structural fusion of economic activity across national boundaries, and argues that it is qualitatively different from previous forms of internationalization that linked discrete economic activities by a series of arm's‐length market transactions. He views technological advances as providing both the rationale and the impetus for this integration; views MNEs (multinational enterprises), cross‐border alliances and the networking of firms as the vehicles by which it is achieved; and views governments as the creators or facilitators of the institutional framework in which production and exchange can be effectively organized. Kobrin believes that the sovereignty of nation states is being compromised—if not undermined—by globalization, and particularly by the emergence of electronic networks. He believes that this is leading to an asymmetry between political and economic space, and between the structural power of firms and national governments, both of which may be difficult to resolve without the establishment of some sort of supra‐national order.Less
Stephen Kobrin looks directly at the impact of globalization on the sovereignty of nation states. He, like Richard Lipsey in Ch. 3, sees globalization as the structural fusion of economic activity across national boundaries, and argues that it is qualitatively different from previous forms of internationalization that linked discrete economic activities by a series of arm's‐length market transactions. He views technological advances as providing both the rationale and the impetus for this integration; views MNEs (multinational enterprises), cross‐border alliances and the networking of firms as the vehicles by which it is achieved; and views governments as the creators or facilitators of the institutional framework in which production and exchange can be effectively organized. Kobrin believes that the sovereignty of nation states is being compromised—if not undermined—by globalization, and particularly by the emergence of electronic networks. He believes that this is leading to an asymmetry between political and economic space, and between the structural power of firms and national governments, both of which may be difficult to resolve without the establishment of some sort of supra‐national order.
Fabrizio Cafaggi and Paola Iamiceli
- Published in print:
- 2015
- Published Online:
- September 2015
- ISBN:
- 9780198723202
- eISBN:
- 9780191790294
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780198723202.003.0021
- Subject:
- Law, Company and Commercial Law, Comparative Law
This chapter addresses the relationship between transnational regulation and industrial organization. It shows that (i) the structure of the supply chain influences the selection of regulatory ...
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This chapter addresses the relationship between transnational regulation and industrial organization. It shows that (i) the structure of the supply chain influences the selection of regulatory strategies, in particular the choice between ‘hierarchical command and control’ and ‘responsive or market-based’ strategies, and (ii) that the selection of the regulatory strategy affects the governance of the supply chain. More particularly, regulation increases the chain’s interdependencies and can promote the formation of networks as devices due to foster monitoring over standard compliance. The Chapter provides for a comparative analysis of certification schemes in food and non-food sectors, in order to present possible forms of correlation between the type of regulation and the shape of regulatory networks. As part of a more comprehensive design of contractual governance along the chain, these networks may combine hierarchical and responsive devices in order to attain effective compliance well beyond the mainstream paths of conventional contract theory.Less
This chapter addresses the relationship between transnational regulation and industrial organization. It shows that (i) the structure of the supply chain influences the selection of regulatory strategies, in particular the choice between ‘hierarchical command and control’ and ‘responsive or market-based’ strategies, and (ii) that the selection of the regulatory strategy affects the governance of the supply chain. More particularly, regulation increases the chain’s interdependencies and can promote the formation of networks as devices due to foster monitoring over standard compliance. The Chapter provides for a comparative analysis of certification schemes in food and non-food sectors, in order to present possible forms of correlation between the type of regulation and the shape of regulatory networks. As part of a more comprehensive design of contractual governance along the chain, these networks may combine hierarchical and responsive devices in order to attain effective compliance well beyond the mainstream paths of conventional contract theory.
Harald Bathelt and Johannes Glückler
- Published in print:
- 2011
- Published Online:
- April 2015
- ISBN:
- 9780199587384
- eISBN:
- 9780191806728
- Item type:
- book
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:osobl/9780199587384.001.0001
- Subject:
- Business and Management, Organization Studies
How are firms, networks of firms, and production systems organized and how does this organization vary from place to place? What are the new geographies emerging from the need to create, access, and ...
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How are firms, networks of firms, and production systems organized and how does this organization vary from place to place? What are the new geographies emerging from the need to create, access, and share knowledge, and sustain competitiveness? In what ways are local clusters and global exchange relations intertwined and co-constituted? What are the impacts of global changes in technology, demand, and competition on the organization of production, and how do these effects vary between communities, regions, and nations? This book synthesizes theories from across the social sciences with empirical research and case studies in order to answer these questions and to demonstrate how people and firms organize economic action and interaction across local, national, and global flows of knowledge and innovation. It is structured in four clear parts. The first part looks at foundations of relational thinking. The next part is about relational clusters of knowledge. The third part looks at knowledge circulation across territories. The final part considers whether there is a relational economic policy. The book employs a relational framework, which recognizes values, interpretative frameworks, and decision-making practices as subject to the contextuality of the social institutions that characterize the relationships between the human agents.Less
How are firms, networks of firms, and production systems organized and how does this organization vary from place to place? What are the new geographies emerging from the need to create, access, and share knowledge, and sustain competitiveness? In what ways are local clusters and global exchange relations intertwined and co-constituted? What are the impacts of global changes in technology, demand, and competition on the organization of production, and how do these effects vary between communities, regions, and nations? This book synthesizes theories from across the social sciences with empirical research and case studies in order to answer these questions and to demonstrate how people and firms organize economic action and interaction across local, national, and global flows of knowledge and innovation. It is structured in four clear parts. The first part looks at foundations of relational thinking. The next part is about relational clusters of knowledge. The third part looks at knowledge circulation across territories. The final part considers whether there is a relational economic policy. The book employs a relational framework, which recognizes values, interpretative frameworks, and decision-making practices as subject to the contextuality of the social institutions that characterize the relationships between the human agents.
