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Extra resources for Business Clusters: Promoting Enterprise in Central And Eastern Europe (Local Economic and Employment Development)
Two phenomena developed as a response to a system of total state control. At the politico-economic level, privileged informal relations were built to navigate the command economy and to procure political and economic favours. Outside of the party structure, closely-knit relations among an inner circle of friends and family were developed as an antidote to state intrusion. In addition, a host of social interactions were devoted to the fulfilment of every day needs, as almost everything had to be negotiated and bartered in intricate ways.
Nevertheless, it does not appear to be a necessary condition. The results showed that the most competitive regions are indeed the most pronounced users of social capital. Firms with greater innovation capacity tended to show higher trust in collaborators, to exchange information outside the normal commercial links, to rate external information higher, to develop strategic contacts and to consider co-operation as more beneficial than other SMEs. However, from a cluster perspective it appears that these highly innovative SMEs are global rather than local in the social and professional contacts they develop.
Trust expresses reciprocity and confidence, both among enterprises and institutions. In particular, in the case of clusters, individual trust in other entrepreneurs and appreciation of the way they “do business” directly impacts on the decision to engage in collaboration. ” One question that immediately arises from this definition is what kind of value does social capital give rise to? Diverse research projects have tried to provide answers in the social and economic fields. The World Bank defines social capital as “institutions, relationships, networks and norms that shape the quality and the quantity of a society’s interactions”, and places the focus on the social dimension.
Business Clusters: Promoting Enterprise in Central And Eastern Europe (Local Economic and Employment Development) by Organisation for Economic Co-Operation a