What Shapes Firm Networks?Cooperative Innovation in Austrian Machine-Tooland Cement Industries

Inter-organizational linkages, often referred to as network relationships, are considered to be of increasing importance for the competitive performance of firms, industries and nations. Two hypotheses about the conditions for the emergence of network relationships are derived from the transaction cost approach and discussed in view of two case studies relying on a medium sized machine-tool firm and a medium sized cement firm in Austria. The paper clearly illustrates the necessity to go beyond the transaction cost approach and to take into account factors such as strategic orientation, management skills and organizational issues. (authors' abstract)