An influential position in the contemporary study of industrial reorganisation discusses the construction of inter-firm trust as a way to adjust the organisation of firms to the flexibility required by the market. The conventional picture of the relation between large firms in France and small firms who supply them, suggests that it is very hard for them to construct such trust-based networks. Instead, it is one of atomised sub-contracting: the large firm gives very detailed specifications for the job that needs to be done, and the subcontractor executes. In recent years, however, several accounts have suggested that this arms-length relationship between larger firms and suppliers is changing.
Small Business Economics – Springer Journals
Published: Oct 6, 2004
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