IDEAS home Printed from https://ideas.repec.org/a/taf/mimoxx/v31y2001i4p14-34.html
   My bibliography  Save this article

Ties, Trust, and Trade

Author

Listed:
  • Mark Lorenzen

Abstract

Industrial clusters are associated with positive economies of networking only because the benefits of specialization and trade among clustered firms are not offset by coordination costs. This article, drawing upon a diversity of theoretical sources, elaborates on this insight, explaining why coordination is particularly efficient in industrial clusters compared to other trade contexts. It argues that in clusters, firms are able to lower coordination costs of networking by means of social trust, while firms outside clusters have to rely on more costly coordination mechanisms. It defines and discusses trust and its origin, defines and discusses coordination and coordination problems, and explains the dominance of social trust within clusters through focusing upon information costs and social ties.

Suggested Citation

  • Mark Lorenzen, 2001. "Ties, Trust, and Trade," International Studies of Management & Organization, Taylor & Francis Journals, vol. 31(4), pages 14-34, December.
    • Handle: RePEc:taf:mimoxx:v:31:y:2001:i:4:p:14-34
    DOI: 10.1080/00208825.2001.11656825
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/00208825.2001.11656825
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/00208825.2001.11656825?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mark Lorenzen, 2005. "Localized Learning and Social Capital The Geography Effect in Technological and Institutional Dynamics," DRUID Working Papers 05-22, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
    2. Kevin P. Heanue, 2008. "Measuring Industrial Agglomeration in a Rural Industry: The Case of Irish Furniture Manufacturing," Working Papers 0830, Rural Economy and Development Programme,Teagasc.
    3. Sowjanya Dhulipala & Gopal R. Patil, 2021. "Identification of freight generating industry complexes: A descriptive spatial analysis," Growth and Change, Wiley Blackwell, vol. 52(4), pages 2680-2712, December.
    4. Mielke, Jahel & Steudle, Gesine A., 2018. "Green Investment and Coordination Failure: An Investors' Perspective," Ecological Economics, Elsevier, vol. 150(C), pages 88-95.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:mimoxx:v:31:y:2001:i:4:p:14-34. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/mimo .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.