The competitiveness of networked production: the role of trust and asset specificity

Article Abstract:

The paper offers a synthesis of sociological and transactions cost economics perspectives on production networks. Sociological explanations of network effectiveness (competitiveness) stress the importance of trust, and transactions costs emphasizes asset specificity. The approach here is comparative, the capabilities of networks are assessed against those of the vertically integrated, managerially coordinated hierarchy. The argument is that the competitiveness of each form derives from different organizational capabilities. Neither is inherently superior - by supporting different strategies, networks and hierarchies can co-exist. A distinction is drawn between those networks that rely on communal support and trust and those networks whose dynamism relies on individualistic and autonomous entrepreneurship. The absence of trust (or the surfeit of entrepreneurial zeal) leaves firms reliant on generic assets. Trust creates the conditions under which communities of firms can develop industry-specific assets capable of delivering real services to network firms that are unavailable through market channels. The competitiveness of a production network is a function of the value adding activities undertaken by agents and the collective response of the value adding activities undertaken by agents and the collective responses made to external threats or disturbances. The argument is illustrated with reference to the organization of watch (timepieces) production in Hong Kong. (Reprinted by permission of the publisher.)

Watches, clocks, watchcases & parts, Watch, Clock, and Part Manufacturing, Watches, Clocks & Watchcases, Analysis, Production management, Competition (Economics), Social networks, Clock and watch industry, Clock industry, Watch industry, Vertical integration, Trust (Psychology)

---

Get real

Article Abstract:

The UK virtual reality (VR) leisure market, dominated by W Industries, Division and Dimension, all UK, is discussed. The principal areas for VR are arcades and television. VR can be classified into theatrical or desktop VR, which was used in the first VR television programme, 'Cyberzone', shown from January 4 1993 on BBC 2 for ten weeks, distributed VR, and the immersion system. A VR programme targeting the Nintendo Sega generation, 'Virtually Impossible', being developed by Tim Childs, Broadsword Television's Managing Director, using distributed VR, will be shown next, but it is not known when. Broadsword is also developing a VR game for European television channels. VR products of other companies are also discussed.

Television programs, Television direction, Television production, Virtual reality, Broadsword Television

---

Little soldiers: a field of boyhood games grows into basic training for deadlier combat

Article Abstract:

A man recalls playing war games as a child near a river, and how his experiences and those of other boys were similar to the experiences of soldiers who fought in the Vietnam War. Moving through the jungle and avoiding capture, as well as the sounds in the jungle were quite similar.

Social aspects, Personal narratives, Military education, Play

Similar abstracts:

• Abstracts: Safety is the goal. The sin of usury
• Abstracts: Gary Leathers. Achieving electronic privacy
• Abstracts: The ride of your life. Mom's the one

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.