Trust or Hierarchy? Changing Relationships Between Large and Small Firms in France

Trust or Hierarchy? Changing Relationships Between Large and Small Firms in France 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. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Small Business Economics Springer Journals

Trust or Hierarchy? Changing Relationships Between Large and Small Firms in France

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Publisher
Springer Journals
Copyright
Copyright © 1998 by Kluwer Academic Publishers
Subject
Business and Management; Management; Microeconomics; Entrepreneurship; Industrial Organization
ISSN
0921-898X
eISSN
1573-0913
D.O.I.
10.1023/A:1007927514399
Publisher site
See Article on Publisher Site

Abstract

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.

Journal

Small Business EconomicsSpringer Journals

Published: Oct 6, 2004

References

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