Pyramids of Trust: Social Embeddedness and Political Culture in Two Italian Gold Jewelry Districts

Dario Gaggio

Enterprise & Society, 2006, vol. 7, issue 1, 19-58

Abstract: This article demonstrates the usefulness of the notion of embeddedness to the historical study of Italian industrial districts of small firms and of local economic change more generally. The development of gold jewelry production in two Italian towns, Valenza Po and Arezzo, shows that vertical disintegration was enabled by the creation of networks of heterogeneous social relations. In both towns, social and political ties led to the creation of institutions of collective governance, which in turn produced a workable level of trust between economic actors. The production of trust, however, never ceased to be a contentious process, endowed with multiple and often contradictory meanings embedded in specific networks and contexts, ranging from collective projects of modernization in Valenza Po to the cementing of a secretive informal economy in Arezzo. The embeddedness approach to economic action is superior both to the communitarian arguments of much of the literature on the Italian industrial districts and to transaction-cost theories, which tend to view institutions in instrumental and functionalist ways.

Date: 2006
References: Add references at CitEc
Citations: View citations in EconPapers (8)

Downloads: (external link)
https://www.cambridge.org/core/product/identifier/ ... type/journal_article link to article abstract page (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cup:entsoc:v:7:y:2006:i:01:p:19-58_00

Access Statistics for this article

More articles in Enterprise & Society from Cambridge University Press Cambridge University Press, UPH, Shaftesbury Road, Cambridge CB2 8BS UK.
Bibliographic data for series maintained by Kirk Stebbing ().