Knowledge in Inter-Firm Relationships in an Industrial District

Abstract

In this article, a cognitive approach, arising from the resource-based view of the firm, is adopted to investigate how inter-firm relationships are changing in industrial districts, and how the characteristics of knowledge involved in these networking processes can affect change. Assuming that the content of any inter-firm relationship may be defined as ‘transferred knowledge’ that is required for the purpose of facilitating coordination between the firms, there are two problem areas of complexity: the complexity caused by uncertainty and the complexity caused by ambiguity. Starting from this assumption, the relations between the complexity of the ‘transferred knowledge’ and the specific types of inter-firm relationships are examined. Then, the impact of the knowledge codification process and the value of social interactions for the effectiveness and efficiency of coordination between firms are given particular attention.