Networks, Governance and Economic Development
Show Less

Networks, Governance and Economic Development

Bridging Disciplinary Frontiers

Edited by Mari Jose Aranguren Querejeta, Cristina Iturrioz Landart and James R. Wilson

This compact and authoritative book brings together the topical themes of networks and governance to advance understanding of the determinants of local economic development in the context of increasingly global relationships.
Buy Book in Print
Show Summary Details
You do not have access to this content

Chapter 9: The Governance of Networks in the Shannon Region of Ireland

Helena Lenihan and B. Andreosso-O’Callaghan


1 Helena Lenihan and B. Andreosso-O’Callaghan 1 INTRODUCTION Networking is the essence of the firm. The plain Coasian observation that firms require inputs to produce and to perform, and that no single firm possesses every input it needs to undertake its activities, implies that firms are compelled to engage in exchange activities, and that they naturally and gradually develop their own networks. Even before the Coasian observation (1937), Marshall’s analysis (1895) recognized the advantages of firm cooperation. Richardson (1972) also refers to ‘the dense network of cooperation and affiliation by which firms are inter-related’ (p. 883). In fact Richardson criticized the traditional theory of the firm for failing to take into account the existence of inter-firm cooperation and affiliation. Richardson sums up the prime reason for the ‘existence of the complex networks of cooperation and association . . .’ saying that they exist due to ‘the need to co-ordinate closely complementary but dissimilar activities’ (p. 892). The subsequent network model developed by Håkansson and Johanson (1988) suggests that firms need resources to execute their activities. A single firm does not possess every resource needed for its activities (Duijnhouwer, 1994), implying that firms thus engage in resource exchange (Easton, 1992; Håkansson & Johanson, 1988). Different types and levels of networking activities exist, and these have been well described and analysed by the abundant modern economic and management literature on the topic (Håkansson & Johanson, 1988; Belussi, 1992; Zaheer & Venkatraman, 1995; Belussi & Arcangeli, 1998; Gulati, 1998; Roper, 2005). This...

You are not authenticated to view the full text of this chapter or article.

Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.

Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.

Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.

Further information

or login to access all content.