Organizational Proximity and Institutional Learning

Kevin Heanue and David Jacobson

International Studies of Management & Organization, 2001, vol. 31, issue 4, 56-72

Abstract: This article differentiates between the evolution of trust in two main situations: where firms are geographically clustered and where they are spatially dispersed. While the former has received a lot of research attention, the latter has not. Drawing on the theoretical literature on economies of agglomeration, economies of association, trust, and social networks, we argue that organizational proximity is an alternative to spatial proximity as a context within which ascribed trust can develop, even in the absence of direct interaction. We apply these ideas to the case of a spatially diffuse network of three furniture firms in Ireland.

Date: 2001
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DOI: 10.1080/00208825.2001.11656827

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