Abstract
This article determines whether transaction cost theory can be used as a framework for analysing industrial district relationships, using the Gnosjö/Anderstorp industrial district in Sweden as a case example. Interviews with six firm owner/managers, representatives from the trade union and the local industrial development centre were conducted. Data was analysed using pattern matching in accordance to the theoretical framework. The findings indicate that interfirm relationships in the industrial district are motivated by the desire to reduce transaction costs. The article offers an alternative perspective in analysing industrial districts as current studies use network theory in explaining the industrial district phenomena.
Similar content being viewed by others
References
Alberti, F. G. (2006). The decline of the industrial district of Como: Recession, relocation or reconversion. Entrepreneurship and Regional Development, 18, 473–501.
Amin, A. (1989). Flexible specialisation and small firms in Italy: Myths and realities. Antipode, 21(1), 13–34.
Bianchi, G. (1998). Requiem for the Third Italy? Rise and fall of a too successful concept. Entrepreneurship and Regional Development, 10(2), 93–116.
Davidsson, P. (1995). Culture, structure and regional levels of entrepreneurship. Entrepreneurship and Regional Development, 7(1), 41–62.
Eggertsson, T. (1990). Economic behaviour and institutions. Cambridge: Cambridge University Press.
Feser, E. (2002). Tracing the sources of external economies. Urban Studies, 39, 2485–2506.
Furubotn, E. G., & Richter, R. (1997). Institutions and economic theory. The Contribution of the new institutional economics. Ann Arbor: University of Michigan Press.
Gossling, T. (2003). Proximity, trust and morality in networks. European Planning Studies, 12, 675–689.
Håkanson, L. (2005). Epistemic communities and cluster dynamics: On the role of knowledge in industrial districts. Industry and Innovation, 12, 433–463.
Johannisson, B. (1984). A cultural perspective on small business—Local business climate. International Small Business Journal, 2(2), 32–43.
Marcela, S., Bernal, H., Burr, C. & Johnsen, R. E. (2002). Competitor networks: International competitiveness through collaboration. International Journal of Entrepreneurial Behaviour & Research, 8(5), 239–253.
Nooteboom, B. (1993). Firm size effects on transaction costs. Small Business Economics, 5, 283–295.
North, D. (1990). Institutions, institutional change and economic performance. Cambridge: Cambridge University Press.
North, D. (2005). Understanding the process of economic change. Princeton: Princeton University Press.
Pandit, N. R., & Cook, G. (2003). The benefits of industrial clustering: Insight from the British financial services industry, at three locations. Journal of Financial Services Marketing, 7(3), 230–245.
Pinch, S., Henry, N., Jenkins, M., & Tallman, S. (2003). From industrial districts to knowledge clusters: A model of knowledge dissemination and competitive advantage in industrial agglomerations. Journal of Economic Geography, 3, 373–388.
Sammarra, A., & Belussi, F. (2006). Evolution and relocation in fashion-led Italian districts: Evidence from two case-studies. Entrepreneurship and Regional Development, 18, 543–562.
Schmitz, H. (2000). Does local cooperation matter? Evidence from industrial clusters in South Asia and Latin America. Oxford Development Studies, 28, 323–336.
Sengenberger, W., & Pyke, F. (1992). Industrial districts and local economic regeneration: Research and policy issues. In F. Pyke & W. Sengenberger (Eds.), Industrial districts and local economic regeneration (3–29). Ginebra: International Labour Organisation.
Simon, H. (1951). A formal theory of the employment relationship. Econometrica, 19, 293–305.
Sjöstrand, S. E. (1992). On the rationale behind irrational institutions. Journal of Economic Issues, 26, 1007–1040.
Staber, U. (1997). Specialization in a declining industrial district. Growth and Change, 28, 475–495.
Szarka, J. (1990). Networking and small firms. International Small Business Journal, 8(2), 10–22.
Trigilia, C. (1992). Italian industrial districts: neither myth nor interlude. In F Pyke & W Sengenberger (Eds.), Industrial districts and local economic regeneration (33–47). Ginebra: International Labour Organisation.
Williamson, O. E. (1979). Transaction-cost economics: The governance of contractual relations. Journal of Law and Economics, 22, 233–261.
Williamson, O. E. (1985). The economic institutions of capitalism. New York: The Free Press.
Yin, R. K. (1989). Case-study research: Design and methods. Beverly Hills, CA: Sage Publications.
Author information
Authors and Affiliations
Corresponding author
Rights and permissions
About this article
Cite this article
Serarols i Tarrés, C., Co, M.J. & Spohn, D. A transaction cost approach to analysing industrial districts. Int Entrep Manag J 4, 235–252 (2008). https://doi.org/10.1007/s11365-007-0064-x
Published:
Issue Date:
DOI: https://doi.org/10.1007/s11365-007-0064-x