The role of socio-economic embeddedness in promoting cooperation in the workplace: Evidence from family-owned Italian firms

Abstract

Workplace relations can be defined as cooperative when actors are satisfied that both their work organization and material concerns are met. However, cooperation is difficult to achieve and especially to maintain over time. A useful point of reference is the work of Bélanger and Edwards, who argue that technology, product markets and institutional regulations are necessary preconditions. Their model is derived mainly from studies of large, publicly-listed enterprises based in particular institutional (Anglo-American) contexts. In the present article the authors examine the case of family-owned, medium-sized manufacturing enterprises in Northeast Italy. Bélanger and Edwards’ model provides some but limited theoretical purchase in explaining the high level of ongoing cooperation witnessed in the case firms. In addition, the firms’ concentrated, financially patient capital and family-ownership together with their local embeddedness increase their commitment to their community and facilitate collaboration and investments in it. The authors term these features firms’ socio-economic embeddedness.