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The Role of Dynamic Capabilities and Social Capital in Breaking Socio‐Institutional Inertia in Regional Development

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  • TIMO PIHKALA
  • VESA HARMAAKORPI
  • SATU PEKKARINEN

Abstract

A shift in the techno‐economic paradigm will affect regions; regions, however, are path‐dependent units. This path‐dependency often leads to considerable socio‐institutional inertia in the process of transformation whereby regions aim to remain competitive in the face of worldwide competition. The present article assesses the role of the dynamic capabilities of social capital in the process of regional adaptation. A survey conducted in the Lahti urban region in Finland is used as empirical data. The results of the survey reveal the respondents' fairly good awareness of the prevailing techno‐economic paradigm and of the strong socio‐institutional inertia confronting change in practice. The results suggest, however, that there are systematic differences in responsiveness between local politicians and other decision‐makers. The study concludes with a discussion of the relevance of shared common views on the development needed within the region. Résumé Un changement dans le schéma conceptuel techno‐économique va affecter les régions, lesquelles présentent toutefois une ‘dépendance de chemin’. Cette situation conduit souvent à une très forte inertie socio‐institutionnelle dans le processus de transformation par lequel des régions s'efforcent de garder leur place face à la concurrence mondiale. L'article évalue le rôle des capacités dynamiques du capital social au sein du processus d'adaptation régionale. Une enquête menée dans la zone urbaine de Lahti, en Finlande, fournit les données empiriques. D'après ses résultats, les personnes interrogées ont une perception assez bonne du paradigme techno‐économique dominant et de la puissante inertie socio‐institutionnelle qui s'oppose concrètement au changement. Il en ressort cependant des différences systématiques dans la réactivité entre les hommes politiques et les autres décideurs. En conclusion, l'étude analyse la pertinence des opinions communes partagées concernant le développement nécessaire dans la région.

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  • Timo Pihkala & Vesa Harmaakorpi & Satu Pekkarinen, 2007. "The Role of Dynamic Capabilities and Social Capital in Breaking Socio‐Institutional Inertia in Regional Development," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 31(4), pages 836-852, December.
    • Handle: RePEc:bla:ijurrs:v:31:y:2007:i:4:p:836-852
    DOI: 10.1111/j.1468-2427.2007.00757.x
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    References listed on IDEAS

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    2. Jurgita Bruneckiene & Robertas Jucevicius & Ineta Zykiene & Jonas Rapsikevicius & Mantas Lukauskas, 2019. "Assessment of Investment Attractiveness in European Countries by Artificial Neural Networks: What Competences are Needed to Make a Decision on Collective Well-Being?," Sustainability, MDPI, vol. 11(24), pages 1-23, December.
    3. Gölgeci, Ismail & Larimo, Jorma & Arslan, Ahmad, 2017. "Institutions and dynamic capabilities: Theoretical insights and research agenda for strategic entrepreneurship," Scandinavian Journal of Management, Elsevier, vol. 33(4), pages 243-252.
    4. Brita Hermelin & Hans Rämö, 2017. "Intermediary activities and agendas of regional cleantech networks in Sweden," Environment and Planning C, , vol. 35(1), pages 130-146, February.
    5. Jurgita Bruneckiene & Irena Pekarskiene & Oksana Palekiene & Zaneta Simanaviciene, 2019. "An Assessment of Socio-Economic Systems’ Resilience to Economic Shocks: The Case of Lithuanian Regions," Sustainability, MDPI, vol. 11(3), pages 1-24, January.
    6. Ioannidis, Panos, 2015. "Από Τον Καποδίστρια Στον Καλλικράτη: Θεσμικές Μεταρρυθμίσεις Της Τοπικής Αυτοδιοίκησης Και Συνεργατικές Στρατηγικές Στην Ανατολική Μακεδονία Και Θράκη [From Kapodistrias to Kallikrates: Local Gover," MPRA Paper 66614, University Library of Munich, Germany.
    7. Charles Conteh, 2013. "Changing Trends in Regional Economic Development Policy Governance: The Case of Northern Ontario, Canada," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 37(4), pages 1419-1437, July.

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