This article is based on field research in the Kasongan ceramic handicraft industry cluster. The research was conducted using qualitative research method. The results show that the development of industrial cluster is possible because of the role of social network in the process of buying and selling of products, business gain labor, and financial capital. Social networks also play a role in subcontracting, vertical disaggregation, and increasing and disseminating knowledge and skills among workers and employers. The formation of networks is influenced by the institutional environment in the form of free markets, the unique properties of ceramic products, and the uncertainty of ceramic demand.
This document discusses a study analyzing the internationalization process of family businesses in the wine industry. The study examines how resources from private and professional networks facilitate internationalization. It analyzes differences in networking competencies between wine business owners and how these relate to the level of internationalization. The study challenges the Uppsala Model of incremental internationalization, finding support for the "born global hypothesis" after a business succession process. Networks are found to provide both financial resources and informal resources like information and knowledge that encourage international involvement.
In recent years, the Bitcoin community has collectively developed an open source platform that allows for the mining of the Bitcoin currency as well as instant global peer-to-peer payments and financial transactions using Bitcoins - without any central authority. With its theoretical roots in the Austrian School of Economics, the community can be seen as a potential threat to the mega financial institutions and governments in Europe and across the globe as the Bitcoin currency and its underlying principles challenge the long-standing fiat money system. Designed and implemented in only 2009, Bitcoin has rapidly grown from being an idea in the head of a “Japanese programmer” to becoming a legitimate currency as Bitcoin-Central was awarded an International Bank ID number and became a Payment Services Provider equal to organizations such as PayPal. However, perhaps due to its rapid growth during the past four years and the fact that the currency is primarily a virtual one, the Bitcoin community has been subject to external threats such as fraud, hacker attacks, and a lawsuit. Despite this, the community has shown significant resilience and has even shown continued exponential growth in recent months. As such, our research purpose is to investigate the process through which the Bitcoin community acts as an institutional entrepreneur. As a first step in fulfilling our research purpose, we conduct an exploratory analysis in this research-in-progress paper of the formal and informal “organizations” of Bitcoin as well as of the topical network structure of the Bitcoin community using secondary sources and the complete archive of 1.15 million English posts written by 21,903 members between 2009 and 2013. Some preliminary results and findings as well as future steps are discussed.
This document summarizes a research study that examined the impact of social network usage on the success of business startups. The study focused on companies in the plastics and rubber manufacturing industry in Jordan. A survey was administered to 124 companies, with 105 responses analyzed. The results revealed that there is a statistically significant impact of social networks on the success of business startups. Social networks allow entrepreneurs to access resources at lower costs than market alternatives and secure resources not otherwise available. Both strong and weak social ties are important, with strong ties providing resources and weak ties aiding opportunity identification and legitimacy.
This document discusses how technology is challenging traditional law firm business models and changing how law is delivered. It provides examples of trends in other countries like the US and UK where technology has led to the commoditization and unbundling of legal services. One New Zealand law firm, Ebborn Law, is discussed as an example of a firm innovating through their use of technology to increase profitability and better meet client needs and expectations. The document raises that law firms need to change and innovate or risk becoming obsolete, as technology continues to disrupt traditional models of legal service delivery.
Micro, Small, and Medium Sized Enterprises’ (MSMEs) Participation in Peacebui...Dr. Amarjeet Singh
The academic literature has provided substantial
amount of suggestions on broad concepts of business fostering
peace in the community just by doing its operations properly.
However, many could contend if these businesses could be
urged to perform larger roles as agents for peace.
Consequently, the desire to have businesses, particularly the
Micro, Small and Medium Enterprise (MSME), to act as key
players in peacebuilding largely depends on the understanding
of what could motivate them in acting such key role and what
could possibly hinder them in doing the same. Thus, this study
is an exploration of the motivators and challenges of MSMEs
in acting as main agents for peacebuilding. The study utilized
a descriptive research design involving thirty conveniently
sampled MSMEs in Butuan City, Philippines. A researchermade questionnaire was used as data gathering tool. A
multivariate analysis was done to analyse the effect of
participation and perceived risk in the identified motivators
and barriers. The results of the study revealed thatinternal
motivators are the greatest motivators in acting for peace.In
addition, financial and political reasons are strong barriers for
MSMEs to participate in peacebuilding. Finally, the study
found that Level of Perceived Risk and Participation
significantly affects the type of motivators and barriers
MSMEs face in peacebuilding movements.
Industrial sociology is the scientific study of human social behavior and interactions within industrial settings, including work organizations, labor markets, and the effects of technological change and globalization. It examines relationships within businesses between owners, managers, and workers, as well as the conditions affecting industries like politics, laws, and economic performance. Industrial relations encompass the whole field of relationships that exist due to necessary collaboration between men and women in industry, including organizations of workers and management, the state, companies, and individual workers. The goal of industrial relations is to avoid disputes and raise productivity through collective bargaining, participation, and mutual trust between unions and management.
This document discusses using social network analysis to study knowledge networks in London's advertising industry. It outlines how social network analysis was used to map the connections between people who sit on multiple company boards and between companies. The analysis identified several key findings:
- 64 people sat on boards of 286 companies, with only a small percentage of potential connections actually present.
- Five of the most connected companies were located in the same building as a large advertising firm, suggesting knowledge sharing between these companies beyond formal ownership ties.
- Social network analysis provides a way to visualize networks and identify important characteristics, like central individuals and clusters, to help understand tacit knowledge transfer within an industry.
Blockchain technology has the potential to transform the record industry in four key ways:
1. As a networked database for music copyright information, allowing ownership data to be updated and accessed globally.
2. By facilitating fast, frictionless royalty payments through transparency across the industry value chain.
3. By providing transparency into how value is shared across the industry.
4. By giving artists access to alternative sources of capital.
However, there are also significant challenges to adoption, including issues with cryptocurrencies, governance of data integrity, and reaching a critical mass of participants. Future research is needed to fully realize blockchain's impact.
This document discusses a study analyzing the internationalization process of family businesses in the wine industry. The study examines how resources from private and professional networks facilitate internationalization. It analyzes differences in networking competencies between wine business owners and how these relate to the level of internationalization. The study challenges the Uppsala Model of incremental internationalization, finding support for the "born global hypothesis" after a business succession process. Networks are found to provide both financial resources and informal resources like information and knowledge that encourage international involvement.
In recent years, the Bitcoin community has collectively developed an open source platform that allows for the mining of the Bitcoin currency as well as instant global peer-to-peer payments and financial transactions using Bitcoins - without any central authority. With its theoretical roots in the Austrian School of Economics, the community can be seen as a potential threat to the mega financial institutions and governments in Europe and across the globe as the Bitcoin currency and its underlying principles challenge the long-standing fiat money system. Designed and implemented in only 2009, Bitcoin has rapidly grown from being an idea in the head of a “Japanese programmer” to becoming a legitimate currency as Bitcoin-Central was awarded an International Bank ID number and became a Payment Services Provider equal to organizations such as PayPal. However, perhaps due to its rapid growth during the past four years and the fact that the currency is primarily a virtual one, the Bitcoin community has been subject to external threats such as fraud, hacker attacks, and a lawsuit. Despite this, the community has shown significant resilience and has even shown continued exponential growth in recent months. As such, our research purpose is to investigate the process through which the Bitcoin community acts as an institutional entrepreneur. As a first step in fulfilling our research purpose, we conduct an exploratory analysis in this research-in-progress paper of the formal and informal “organizations” of Bitcoin as well as of the topical network structure of the Bitcoin community using secondary sources and the complete archive of 1.15 million English posts written by 21,903 members between 2009 and 2013. Some preliminary results and findings as well as future steps are discussed.
This document summarizes a research study that examined the impact of social network usage on the success of business startups. The study focused on companies in the plastics and rubber manufacturing industry in Jordan. A survey was administered to 124 companies, with 105 responses analyzed. The results revealed that there is a statistically significant impact of social networks on the success of business startups. Social networks allow entrepreneurs to access resources at lower costs than market alternatives and secure resources not otherwise available. Both strong and weak social ties are important, with strong ties providing resources and weak ties aiding opportunity identification and legitimacy.
This document discusses how technology is challenging traditional law firm business models and changing how law is delivered. It provides examples of trends in other countries like the US and UK where technology has led to the commoditization and unbundling of legal services. One New Zealand law firm, Ebborn Law, is discussed as an example of a firm innovating through their use of technology to increase profitability and better meet client needs and expectations. The document raises that law firms need to change and innovate or risk becoming obsolete, as technology continues to disrupt traditional models of legal service delivery.
Micro, Small, and Medium Sized Enterprises’ (MSMEs) Participation in Peacebui...Dr. Amarjeet Singh
The academic literature has provided substantial
amount of suggestions on broad concepts of business fostering
peace in the community just by doing its operations properly.
However, many could contend if these businesses could be
urged to perform larger roles as agents for peace.
Consequently, the desire to have businesses, particularly the
Micro, Small and Medium Enterprise (MSME), to act as key
players in peacebuilding largely depends on the understanding
of what could motivate them in acting such key role and what
could possibly hinder them in doing the same. Thus, this study
is an exploration of the motivators and challenges of MSMEs
in acting as main agents for peacebuilding. The study utilized
a descriptive research design involving thirty conveniently
sampled MSMEs in Butuan City, Philippines. A researchermade questionnaire was used as data gathering tool. A
multivariate analysis was done to analyse the effect of
participation and perceived risk in the identified motivators
and barriers. The results of the study revealed thatinternal
motivators are the greatest motivators in acting for peace.In
addition, financial and political reasons are strong barriers for
MSMEs to participate in peacebuilding. Finally, the study
found that Level of Perceived Risk and Participation
significantly affects the type of motivators and barriers
MSMEs face in peacebuilding movements.
Industrial sociology is the scientific study of human social behavior and interactions within industrial settings, including work organizations, labor markets, and the effects of technological change and globalization. It examines relationships within businesses between owners, managers, and workers, as well as the conditions affecting industries like politics, laws, and economic performance. Industrial relations encompass the whole field of relationships that exist due to necessary collaboration between men and women in industry, including organizations of workers and management, the state, companies, and individual workers. The goal of industrial relations is to avoid disputes and raise productivity through collective bargaining, participation, and mutual trust between unions and management.
This document discusses using social network analysis to study knowledge networks in London's advertising industry. It outlines how social network analysis was used to map the connections between people who sit on multiple company boards and between companies. The analysis identified several key findings:
- 64 people sat on boards of 286 companies, with only a small percentage of potential connections actually present.
- Five of the most connected companies were located in the same building as a large advertising firm, suggesting knowledge sharing between these companies beyond formal ownership ties.
- Social network analysis provides a way to visualize networks and identify important characteristics, like central individuals and clusters, to help understand tacit knowledge transfer within an industry.
Blockchain technology has the potential to transform the record industry in four key ways:
1. As a networked database for music copyright information, allowing ownership data to be updated and accessed globally.
2. By facilitating fast, frictionless royalty payments through transparency across the industry value chain.
3. By providing transparency into how value is shared across the industry.
4. By giving artists access to alternative sources of capital.
However, there are also significant challenges to adoption, including issues with cryptocurrencies, governance of data integrity, and reaching a critical mass of participants. Future research is needed to fully realize blockchain's impact.
This document summarizes a study on the social capital resources of Romanian immigrants in Toronto. It reviews literature on how civic participation and network development build social capital. The study interviewed 30 first-generation Romanian immigrants about their civic involvement in Canada and personal/professional networks. It finds their experiences under Romania's communist regime influence their attitudes today, making them less trusting and less civically engaged. The study provides policy recommendations for organizations to better engage ethnic communities through research, transparency, and explaining the benefits of civic participation and bridging ties.
Mobility and the Politics of Place: tensions and transactions between corpora...Tarje Wanvik
1. The document outlines Tarje I. Wanvik's PhD research which examines how Norwegian companies operating abroad and their expatriate employees are perceived within local communities.
2. The research will explore the tensions between multinational corporations, expatriates, and local communities. It will also analyze the social responsibility activities employed to curb expectations of corruption and build reciprocity.
3. The research proposes three main hypotheses: that a lack of reciprocity leads to corruption; corporate social responsibility can reduce corruption by increasing transparency; and both companies and communities develop strategies of attachment and detachment in response to corporate mobility.
This document discusses inconsistencies with the multi-stakeholder model of Internet governance used by the Internet Corporation for Assigned Names and Numbers (ICANN) and problems with its accountability mechanisms. Specifically, it notes that the model has ambiguous and ill-defined forms, distorted roles between stakeholders, and a "democracy deficit" with a lack of representative diversity and transparency. It proposes solutions like an independent body to ensure ICANN follows its own rules and increasing participation from users and civil society.
This report analyzes cooperation between organizations working to combat human trafficking in Scotland. The report conducted interviews with stakeholders to understand the challenges of inter-organizational relationships. It finds that while there is goodwill between groups, there are also significant barriers that limit effective cooperation. The report recommends adopting a cooperative strategic framework with partnerships at multiple levels as the best approach. This would involve appreciation, understanding, and strategic management of relationships between organizations.
This document summarizes an article by Prof. Mukul Asher arguing for reforms to public enterprises in Asia. The key points are:
1. Theoretical literature suggests a firm's ownership (public or private) should not impact its efficiency, but empirical evidence shows both efficient and inefficient firms in both sectors. Ownership is too simplistic a distinction as complex structures have emerged.
2. A firm's efficiency depends more on competitive pressures, outcome-oriented incentives, technological adaptability, and individual incentives aligned with organizational goals.
3. Singapore's experience shows a focus on divesting selected public enterprises while maintaining government control, and defining responsibilities, not ownership changes, to balance service and value.
A Model To Develop Small And Medium Enterprise Sector In Sri Lanka Subcontra...Valerie Felton
This document discusses subcontracting linkages in the Sri Lankan garment industry. It begins by reviewing previous studies on subcontracting in the industry, which have mainly focused on the impact on women workers. The paper aims to investigate the characteristics and nature of subcontracting linkages, and identify challenges. It uses data from a 2011 field survey of garment firms. Subcontracting is described as an important feature of industrial development and networks. The paper discusses different types of business and inter-firm linkages, focusing on subcontracting linkages which can take various forms.
The International Journal of Engineering and Science (The IJES)theijes
The International Journal of Engineering & Science is aimed at providing a platform for researchers, engineers, scientists, or educators to publish their original research results, to exchange new ideas, to disseminate information in innovative designs, engineering experiences and technological skills. It is also the Journal's objective to promote engineering and technology education. All papers submitted to the Journal will be blind peer-reviewed. Only original articles will be published.
The document discusses innovation networks and the importance of trust within networks. It provides the example of the biomedical industrial pole in Mirandola, Italy as a case of an innovative network developing due to a single entrepreneur. Over time, as new firms were created through spin-offs and collaboration increased based on trust and cooperation, a real network took shape in Mirandola with different types of firms specialized in various aspects of biomedical production. Trust is identified as a critical asset that allows networks to effectively generate innovation through knowledge sharing and reduces risks of innovation failure.
Role of Organization Culture on Kuwait’s Construction Industry Management: An...IJERA Editor
Many of stakeholders in construction projects make the construction industry prone to disputes. Communication breakdown, frequently, is the first sign of problems, notably in the relationship between the Contractor and the Consultant. Where, the construction industry in Kuwait is increasing due to market needs, large number of private and public construction projects. The high demands in the market have led to a competition in the construction market. Organization culture has become one of the construction strategies plan to enhance organization management performance and productivity. This present work investigated and analysed the role and impact of organization culture on Kuwaiti construction organization management. This paper represents the first research on this area and contributed to explore and identify cultural-chractersitics that play a role on construction management.
Determining the impact of global-local transformations of property on the for...Igor Britchenko
The object of research is the relationship between the processes of formation of the information-network society and the global-local transformation of property relations at the turn of the XX–XXI centuries. The problem has been identified that the limitations of theoretical approaches to explain the content and interrelation of property relations and the social meaning of high-tech development have led to an increase in general socio-economic instability. To solve the problem, the definition of the institution of property as an economic good is provided. A three-level traditional model of public management has been highlighted. It is shown that the existing triple structure of the public sector of economy should acquire a different value content. The new model in the dynamic unity of markets of pure public benefits, public goods, private goods harmonizes public interests, strengthens relations of trust. This model forms the foundations for the formation of nanoeconomics in a broad sense as the forerunner of harmonious institutional architectonics of the economy. Nanoeconomics, as part of baby economics, human economics, and economics of nanotechnology, is based on the principles of rational behavior in making economic decisions within the limits of power. In the depths of baby economics, skills and competencies are formed in handling property. The human economy ensures the proper implementation of property functions. Within the experimental part of the study, a mathematical model of multifactor regression is constructed. The model confirmed the presence of dense dependence (0.9076) of the growth of GDP per capita on the state of distribution of property rights in the national economy. The area of practical use of the results is the post-war reconstruction of Ukraine's economy through the activation of its domestic business potential.
Where Can Public Policy Play a Role A Comparative Case Study of Regional Inst...iBoP Asia
Where Can Public Policy Play a Role A Comparative Case Study of Regional Institutions and Their Impact on Firm’s Innovation Networks in China and Switzerland
This document summarizes a research study that examined the impact of social network usage on the success of business startups. The study focused on companies in the plastics and rubber manufacturing industry in Jordan. A survey was administered to 124 companies, with 105 responses analyzed. The results revealed that there is a statistically significant impact of social networks on the success of business startups. Social networks allow entrepreneurs to access resources at lower costs than market alternatives and secure resources not otherwise available. Both strong and weak social ties are important, with strong ties providing resources and weak ties aiding opportunity identification and legitimacy.
This document discusses a study on business clustering and the emergence of new businesses in Nigeria. The study examined 12,104 sellers of building materials in Akwa Ibom State and Cross Rivers State using questionnaires. The findings showed that business clustering has a remarkable effect on the formation of new businesses in Nigeria by generating economic multiplier effects that can lead to socio-economic transformation and the transfer of technology and innovation. It was recommended that the government invest in industrial sectors and relax import laws to encourage business clustering and positively impact production.
Role of entrepreneurship in the control and change processEmelyn Madalio
This document discusses the role of entrepreneurship in network organizations. It defines network entrepreneurship or "interpreneurship" as developing entrepreneurship within network organizations. Interpreneurship is different from traditional entrepreneurship and intrapreneurship. The document also discusses how networking has changed the nature of entrepreneurship and the entrepreneurial process. It notes that network organizations are different from previous organizational forms and require different roles and tasks from members. Entrepreneurial networking is key to the long-term survival of independent business units within a network. The person who helps the network operate smoothly and maintain trust between members is called the "caretaker."
A SOCIAL CAPITAL APPROACH TO ENTREPRENEURIAL ECOSYSTEM AND INNOVATION: CASE S...indexPub
Despite being recognised as drivers of innovative development, Micro, Small, and Medium-Sized Enterprises (MSMEs) frequently confront resource limitations. Therefore, enhancing the ecosystem is contingent on the entrepreneurs’ social capital, which is crucial for the success of MSMEs. This study applies the social capital approach to analyse the entrepreneurial ecosystem enrichment and its impact on the innovation process of cosmetics MSMEs. The qualitative case study of six cosmetic manufacturing MSMEs explores that social capital is a multifaceted asset to MSMEs. Through an in-depth thematic analysis of three dimensions of social capital (structural, relational, and cognitive), this study states that the innovation process is supported by the synergistic transformation of one dimension of social capital into another. Entrepreneurs sharing the common norms, rules, and language enrich their cognitive as well as relational aspects of ecosystem. The study suggests that as network ties, trust, and norms collectively influence innovation in firms, hence, social capital needs to be studied with its contextualization in the ecosystem.
This document summarizes a research paper that examines how different types of network structures within communities influence different economic development strategies. The document defines two main economic development strategies - industrial recruitment and self-development. It then defines four types of network structures: complete, factional, coalitional, and bridging. The document hypothesizes that more cohesive network structures like complete and coalitional are better for self-development strategies, while looser bridging structures are better for industrial recruitment by facilitating access to external resources. Factional structures are unlikely to aid either strategy due to lack of information sharing between factions.
Energy Awareness and the Role of “Critical Mass” In Smart Citiesirjes
This document proposes a novel analytical model to define a new concept of critical mass in the context of spreading energy awareness in smart cities. The model incorporates centrality measures in both single-layer and multilayer social networks. Simulation results show that including centrality measures and a multilayer approach lowers the critical mass needed to trigger and spread good consumer habits. Specifically, the model calculates critical mass values using eigenvector centrality in single layers and a heterogeneous eigenvector-like centrality in multilayers. Considering network structure and central nodes' influence allows a smaller critical mass to foster diffusion compared to models that do not account for centrality. Extending the analysis to multilayers further reduces critical mass by increasing tie strength between nodes.
Thinking psychoanalytically about desire in organizations - why we need a 3rd...Boxer Research Ltd
Psychoanalytic understanding has approached the organization as being like the ego in its pursuit of sovereign autonomy, its inter-subjective discursive practices organizing its work in relation to its markets. The corporate entity has been approached as an a priori. Psychoanalytic understanding has addressed the ways in which individuals take up roles within the life of an organization, but not the ways in which an organization may support a multiplicity of roles one-by-one in the lives of its citizen-clients.
The a priori status of the sovereign corporate entity leads to the unconscious being referred to as descriptively unconscious, ‘below the surface’ of the inter-subjective practices it supports. The implication is that what lies ‘below the surface’ can in principle be made conscious. This repressed unconscious is distinct from the wider compass of the radically unconscious. Distinguishing the repressed from this radically unconscious enables us to establish a ‘beyond’ of the libidinally-invested-in identifications supported by the organization. Defenses against anxiety may thus become defenses against a ‘beyond’ of innovation, through which a posteriori organization might support innovative roles in the lives of its citizen-clients.
We need to understand how a radically unconscious valency for innovation becomes realized. This would enable us to address how individuals might support identifications with an organization when it was itself having to innovate continuously ‘under their feet’. Without such an understanding, we can only expect an organization to betray its citizen-clients through serving its a priori interests to the exclusion of ‘others’.
Development NGOs as Innovation IntermediariesiBoP Asia
Developmental NGOs can function as innovation intermediaries by facilitating interactions between diverse actors like smallholder dairy farmers, researchers, private companies, and policymakers. As intermediaries, NGOs can help address institutional challenges to innovation by managing relationships and partnerships. Examples from India show that NGOs are effective intermediaries because they are locally embedded and can experiment with new linkages. Their role as intermediaries may help smallholders engage with changing markets and innovation networks. However, continued support is needed for organizations that can perform intermediation roles over the long term.
The document discusses how the organizational landscape has changed in four key ways:
1) The rise of globalization and multicultural workplaces has increased the importance of understanding diverse cultures and flexible communication.
2) Shifting identities in organizations due to mergers and acquisitions has challenged communication about who belongs to different companies.
3) The prevalence of temporary and contingent workers has weakened connections between workers and organizations.
4) The growth of the service economy in developed nations requires communication skills for interacting with customers during service encounters.
This document summarizes a study on the social capital resources of Romanian immigrants in Toronto. It reviews literature on how civic participation and network development build social capital. The study interviewed 30 first-generation Romanian immigrants about their civic involvement in Canada and personal/professional networks. It finds their experiences under Romania's communist regime influence their attitudes today, making them less trusting and less civically engaged. The study provides policy recommendations for organizations to better engage ethnic communities through research, transparency, and explaining the benefits of civic participation and bridging ties.
Mobility and the Politics of Place: tensions and transactions between corpora...Tarje Wanvik
1. The document outlines Tarje I. Wanvik's PhD research which examines how Norwegian companies operating abroad and their expatriate employees are perceived within local communities.
2. The research will explore the tensions between multinational corporations, expatriates, and local communities. It will also analyze the social responsibility activities employed to curb expectations of corruption and build reciprocity.
3. The research proposes three main hypotheses: that a lack of reciprocity leads to corruption; corporate social responsibility can reduce corruption by increasing transparency; and both companies and communities develop strategies of attachment and detachment in response to corporate mobility.
This document discusses inconsistencies with the multi-stakeholder model of Internet governance used by the Internet Corporation for Assigned Names and Numbers (ICANN) and problems with its accountability mechanisms. Specifically, it notes that the model has ambiguous and ill-defined forms, distorted roles between stakeholders, and a "democracy deficit" with a lack of representative diversity and transparency. It proposes solutions like an independent body to ensure ICANN follows its own rules and increasing participation from users and civil society.
This report analyzes cooperation between organizations working to combat human trafficking in Scotland. The report conducted interviews with stakeholders to understand the challenges of inter-organizational relationships. It finds that while there is goodwill between groups, there are also significant barriers that limit effective cooperation. The report recommends adopting a cooperative strategic framework with partnerships at multiple levels as the best approach. This would involve appreciation, understanding, and strategic management of relationships between organizations.
This document summarizes an article by Prof. Mukul Asher arguing for reforms to public enterprises in Asia. The key points are:
1. Theoretical literature suggests a firm's ownership (public or private) should not impact its efficiency, but empirical evidence shows both efficient and inefficient firms in both sectors. Ownership is too simplistic a distinction as complex structures have emerged.
2. A firm's efficiency depends more on competitive pressures, outcome-oriented incentives, technological adaptability, and individual incentives aligned with organizational goals.
3. Singapore's experience shows a focus on divesting selected public enterprises while maintaining government control, and defining responsibilities, not ownership changes, to balance service and value.
A Model To Develop Small And Medium Enterprise Sector In Sri Lanka Subcontra...Valerie Felton
This document discusses subcontracting linkages in the Sri Lankan garment industry. It begins by reviewing previous studies on subcontracting in the industry, which have mainly focused on the impact on women workers. The paper aims to investigate the characteristics and nature of subcontracting linkages, and identify challenges. It uses data from a 2011 field survey of garment firms. Subcontracting is described as an important feature of industrial development and networks. The paper discusses different types of business and inter-firm linkages, focusing on subcontracting linkages which can take various forms.
The International Journal of Engineering and Science (The IJES)theijes
The International Journal of Engineering & Science is aimed at providing a platform for researchers, engineers, scientists, or educators to publish their original research results, to exchange new ideas, to disseminate information in innovative designs, engineering experiences and technological skills. It is also the Journal's objective to promote engineering and technology education. All papers submitted to the Journal will be blind peer-reviewed. Only original articles will be published.
The document discusses innovation networks and the importance of trust within networks. It provides the example of the biomedical industrial pole in Mirandola, Italy as a case of an innovative network developing due to a single entrepreneur. Over time, as new firms were created through spin-offs and collaboration increased based on trust and cooperation, a real network took shape in Mirandola with different types of firms specialized in various aspects of biomedical production. Trust is identified as a critical asset that allows networks to effectively generate innovation through knowledge sharing and reduces risks of innovation failure.
Role of Organization Culture on Kuwait’s Construction Industry Management: An...IJERA Editor
Many of stakeholders in construction projects make the construction industry prone to disputes. Communication breakdown, frequently, is the first sign of problems, notably in the relationship between the Contractor and the Consultant. Where, the construction industry in Kuwait is increasing due to market needs, large number of private and public construction projects. The high demands in the market have led to a competition in the construction market. Organization culture has become one of the construction strategies plan to enhance organization management performance and productivity. This present work investigated and analysed the role and impact of organization culture on Kuwaiti construction organization management. This paper represents the first research on this area and contributed to explore and identify cultural-chractersitics that play a role on construction management.
Determining the impact of global-local transformations of property on the for...Igor Britchenko
The object of research is the relationship between the processes of formation of the information-network society and the global-local transformation of property relations at the turn of the XX–XXI centuries. The problem has been identified that the limitations of theoretical approaches to explain the content and interrelation of property relations and the social meaning of high-tech development have led to an increase in general socio-economic instability. To solve the problem, the definition of the institution of property as an economic good is provided. A three-level traditional model of public management has been highlighted. It is shown that the existing triple structure of the public sector of economy should acquire a different value content. The new model in the dynamic unity of markets of pure public benefits, public goods, private goods harmonizes public interests, strengthens relations of trust. This model forms the foundations for the formation of nanoeconomics in a broad sense as the forerunner of harmonious institutional architectonics of the economy. Nanoeconomics, as part of baby economics, human economics, and economics of nanotechnology, is based on the principles of rational behavior in making economic decisions within the limits of power. In the depths of baby economics, skills and competencies are formed in handling property. The human economy ensures the proper implementation of property functions. Within the experimental part of the study, a mathematical model of multifactor regression is constructed. The model confirmed the presence of dense dependence (0.9076) of the growth of GDP per capita on the state of distribution of property rights in the national economy. The area of practical use of the results is the post-war reconstruction of Ukraine's economy through the activation of its domestic business potential.
Where Can Public Policy Play a Role A Comparative Case Study of Regional Inst...iBoP Asia
Where Can Public Policy Play a Role A Comparative Case Study of Regional Institutions and Their Impact on Firm’s Innovation Networks in China and Switzerland
This document summarizes a research study that examined the impact of social network usage on the success of business startups. The study focused on companies in the plastics and rubber manufacturing industry in Jordan. A survey was administered to 124 companies, with 105 responses analyzed. The results revealed that there is a statistically significant impact of social networks on the success of business startups. Social networks allow entrepreneurs to access resources at lower costs than market alternatives and secure resources not otherwise available. Both strong and weak social ties are important, with strong ties providing resources and weak ties aiding opportunity identification and legitimacy.
This document discusses a study on business clustering and the emergence of new businesses in Nigeria. The study examined 12,104 sellers of building materials in Akwa Ibom State and Cross Rivers State using questionnaires. The findings showed that business clustering has a remarkable effect on the formation of new businesses in Nigeria by generating economic multiplier effects that can lead to socio-economic transformation and the transfer of technology and innovation. It was recommended that the government invest in industrial sectors and relax import laws to encourage business clustering and positively impact production.
Role of entrepreneurship in the control and change processEmelyn Madalio
This document discusses the role of entrepreneurship in network organizations. It defines network entrepreneurship or "interpreneurship" as developing entrepreneurship within network organizations. Interpreneurship is different from traditional entrepreneurship and intrapreneurship. The document also discusses how networking has changed the nature of entrepreneurship and the entrepreneurial process. It notes that network organizations are different from previous organizational forms and require different roles and tasks from members. Entrepreneurial networking is key to the long-term survival of independent business units within a network. The person who helps the network operate smoothly and maintain trust between members is called the "caretaker."
A SOCIAL CAPITAL APPROACH TO ENTREPRENEURIAL ECOSYSTEM AND INNOVATION: CASE S...indexPub
Despite being recognised as drivers of innovative development, Micro, Small, and Medium-Sized Enterprises (MSMEs) frequently confront resource limitations. Therefore, enhancing the ecosystem is contingent on the entrepreneurs’ social capital, which is crucial for the success of MSMEs. This study applies the social capital approach to analyse the entrepreneurial ecosystem enrichment and its impact on the innovation process of cosmetics MSMEs. The qualitative case study of six cosmetic manufacturing MSMEs explores that social capital is a multifaceted asset to MSMEs. Through an in-depth thematic analysis of three dimensions of social capital (structural, relational, and cognitive), this study states that the innovation process is supported by the synergistic transformation of one dimension of social capital into another. Entrepreneurs sharing the common norms, rules, and language enrich their cognitive as well as relational aspects of ecosystem. The study suggests that as network ties, trust, and norms collectively influence innovation in firms, hence, social capital needs to be studied with its contextualization in the ecosystem.
This document summarizes a research paper that examines how different types of network structures within communities influence different economic development strategies. The document defines two main economic development strategies - industrial recruitment and self-development. It then defines four types of network structures: complete, factional, coalitional, and bridging. The document hypothesizes that more cohesive network structures like complete and coalitional are better for self-development strategies, while looser bridging structures are better for industrial recruitment by facilitating access to external resources. Factional structures are unlikely to aid either strategy due to lack of information sharing between factions.
Energy Awareness and the Role of “Critical Mass” In Smart Citiesirjes
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The Network Governance in Kasongan Industrial Cluster
1. International Journal of Business and Management Invention
ISSN (Online): 2319 – 8028, ISSN (Print): 2319 – 801X
www.ijbmi.org || Volume 6 Issue 6 || June. 2017 || PP—01-07
www.ijbmi.org 1 | Page
The Network Governance in Kasongan Industrial Cluster
Antonius Purwanto
Department of Sociology, Sam Ratulangi University, Manado City, Indonesia
Abstract: This article is based on field research in the Kasongan ceramic handicraft industry cluster. The
research was conducted using qualitative research method. The results show that the development of industrial
cluster is possible because of the role of social network in the process of buying and selling of products,
business gain labor, and financial capital. Social networks also play a role in subcontracting, vertical
disaggregation, and increasing and disseminating knowledge and skills among workers and employers. The
formation of networks is influenced by the institutional environment in the form of free markets, the unique
properties of ceramic products, and the uncertainty of ceramic demand.
Keywords: Industrial cluster, ceramics, social network, institutional context
I. INTRODUCTION
Kasongan is one of the industrial clusters in Bantul Regency, Special Province of Yogyakarta. This
cluster produces ceramic craft art with symbolic value. that is symbolic. Most successful clusters in the
emerging world are accidental. Public policy is merely a catalyst but not for the purpose of forming clusters [1].
The appearance of the Kasongan industrial cluster is also coincidental. At first this cluster produces traditional
ceramics made from raw clay with cookware products, simple wall hangings, water storage, etc. Kasongan
industrial cluster has existed since the Dutch colonial era. The change and its development into clusters that
produce handicraft art began in the late 1960s and early 1970s. The change and development of the cluster
occurred as a result of the introduction of artistic decoration by artists. At present most Kasongan ceramic
products are exported abroad both in Europe, North America and Australia. At this time some ceramic
entrepreneurs have entered the market in Latin America.
This paper seeks to show the role of social networking in the development of Kasongan industrial
cluster. There have been several writings on the Kasongan ceramic industry cluster. Raharjo demonstrates how
the role of artists and internal forces (in the form of the ability of entrepreneurs in making ceramics) and
external (in the form of the power of globalization, the artists and the government) towards the development of
clusters [2]. Ismalina demonstrates the role of structural and structural interaction and transactional attachment
to social networks in cluster development [3]. Guntur shows how a combination of artisans' abilities and the role
of artists in the development of artistic decoration [4].
Questions to be answered in this paper are: (1) How does the social network within the community
where the cluster is in supporting the dissemination of information on employers 'and workers' reputation and
the effectiveness of the application of norms and sanctions? (2) What is the role of social network in obtaining
economic capital, labor transactions between entrepreneurs and in maintaining the sustainability of business
activities within the industry cluster?
II. CONCEPTUAL FRAMEWORK
Social networks are relatively long-lasting and patterned social relationships. The once-in-one social
relationships between two individuals are not social networks. Social networks are important in transactions or
economic exchanges. The significance of social networks in economic transactions is shown by Macaluay [5],
Granovetter [6], Podolny [7], and Biggart [8]. A dense social network involving many people (members) within
a community can prevent the occurrence of violations of the norm, facilitate the dissemination of information
and increase social solidarity [9]. Communities whose communities have many solid social networks are more
conductive to economic development [10].
The significance of social networks in new economic exchanges was recognized by sociologists after
the writing of Granovetter was published. Granovetter criticized Williamson's view of overemphasizing the
rational side of economic exchange [11]. According to Williamson there are two forms of exchange, namely
market exchange and hierarchical exchange. Market exchanges are made when the exchange occurs directly, not
repeatedly and does not require much time, energy, and money (transaction-specific investments). Exchange in
hierarchy will be done if transactions in hierarchy can overcome the problem of time, energy and money. In
hierarchical exchange the transaction process is internalized in the hierarchy for two reasons: First is the limited
rationality of the individual's inability to anticipate some uncertainty. If the transaction process is internalized
then the individual does not need to anticipate the uncertainty because the uncertainty can be overcome with the
2. The Network Governance in Kasongan Industrial Cluster
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existing authority in the organization so it does not require a complicated negotiation. Secondly, with such
internalization opportunism (seeking interest with guile) can be overcome with authority within the organization
[12].
Granovetter says that economic action (eg exchange or sale) is always attached to social relationships.
Social relationships and the structure of social relations (or networks) will generate trust and prevent
malfeasance by economic actors. There are reasons why: (a) In the social relations the individual will provide
cheaper information, (b) the information is better, richer and more accurate, (c) the person who has a continuous
relationship will have the economic motivation to be trusted , And (d) continuous economic relations will be
accompanied by social content that brings strong hopes for trust and avoids opportunism [13]. Podolny suggests
that network exchange is an alternative to exchange in hierarchy and market exchange. Podolny defines the form
of network organization (network exchange) "as a set of actors who exchanged repeatedly and continuously
with each other and, at the same time, no one has the organizational authority to arbitrate and resolve disputes
arising during the exchange"[14]. This definition shows that in the form of network organization, economic
exchange is attached to social relationships as proposed by Granovetter.
The business unit or organization of the production process can, at the same time, use the hierarchy,
market and social network settings in exchange. Under what conditions do business units use social networking
exchanges? Jones points out that there are four conditions that give rise to networking arrangements, namely
[15]: (a) Uncertainty of demand will encourage companies to conduct vertical disaggregation by releasing
business units that were previously part of the enterprise, primarily through outsourcing or sub-contracting. (b)
On-demand transactions that require very specific expertise. This transaction creates a dependency between two
parties. For example, if a buyer cancels an order then the seller has difficulty selling to another buyer, otherwise
the buyer can not easily transfer to another seller either. (c) The complexity of work under time pressure. The
complexity of the work points to a number of specific and varied inputs required to complete the job. The
complexity of work gives rise to interdependence in behavior. The complexity of tasks with time pressures will
also encourage flexible coordination. And (d) frequency of exchange. The high frequency of exchange between
the parties involved encourages the use of networks as an alternative form of arrangement.
Jones points out that closed and crowded social networks can support industry activities that are order-
driven, require speed and involve multiple people with diverse expertise. Such industrial activity is inefficient if
done in a bureaucratic organization. Such industries are rapidly changing. In the industry information and
knowledge spread easily due to the high mobility of workers from one business unit to another. In such
networks information about the employee's reputation is also easily spread. Dissemination of information makes
the norms of the profession and general culture easy to establish and effective application of sanctions against
deviant behavior [16]. The uncertainty of the demands put forward by Jones is closely related to the competition
or market free environment proposed by Nee [17] and the institutional context put forward by Powell [18].
Powell points out that strong bonding networks dominate in craft industries. These industries include
construction, publishing, film and recording [19]
The context or the institutional environment that affects the industrial cluster is in the form of free
market competition, the requirements to be a ceramic exporter, the policy of providing assistance to
cooperatives, and government policies in the development of industrial clusters. The free market creates demand
uncertainty that encourages employers to engage in vertical disaggregation and subcontracting relationships.
The requirements to become an exporter and to be able to receive financial assistance from the government
encourage entrepreneurs to form business units with legal entities and cooperatives.
III. RESEARCH METHODOLOGY
This paper is based on the results of research on ceramic industrial clusters in Kasongan conducted
using qualitative research methods. The research was conducted by interviewing 49 informants consisting of
entrepreneurs, workers, sememen, village apparatus, and government officials. Field research was conducted in
September-December 2011. Data that are the result of interviews and observations are then analyzed, classified
and abstracted using relevant concepts.
IV. RESULT AND ANALYSIS
4.1. The Density of Social Networks in the Industrial Cluster
At first Kasongan was a traditional ceramic producing village to meet functional needs such as kitchen
appliances and building materials. At that time the means of transportation to Kasongan still bad and not yet
visited by people from outside the village. The ceramic craftsmen market their products by going from village to
village in Yogyakarta as well as to other cities in Central Java and East Java. Then in the early 1970s began
many people from outside to visit Kasongan to give ceramic art craft products. Although Kasongan now
resembles the city but administratively remains a village. At this time many people come to Kasongan. They are
ceramic merchants who buy large quantities of ceramics as well as tourists from other cities in Java. Many
3. The Network Governance in Kasongan Industrial Cluster
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tourists arrive on holiday or Sunday or at the end of the year. The tourists come to Kasongan to buy souvenirs
and other ceramic forms to be used as decoration in their homes.
There is a solid social network within the Kasongan industrial cluster based on family relations and
residential similarities. Most entrepreneurs have family relationships. These relationships manifest themselves
clearly in times of family events or status transitions in the human life cycle (rite of passage) such as birth,
entering adulthood, marriage and death. At those events, the households with ceremonies invite relatives,
neighbors and acquaintances to attend. Another joint activity in Kasongan is a gathering of neighboring
associations (Rukun Tetangga/RT). This activity is held every night every 35 days. For example, a meeting at
RT 03 in Kajen is held every Wednesday Wage (Rabu Wage). The meeting was attended by heads of
households or their representatives. Other activities that enable the meeting of many people such as social work
for the repair of roads, splints and memorials of Indonesia's independence day Seventeen August, tomb
cleansing, family welfare education, arts groups, etc.
The activities attended by many people above constitute a solid social network and an important social
capital in support of industrial cluster activities in Kasongan. In Kasongan almost all employers or workers
become members or are involved in more than three groups in the hamlet. Inactivity or good-badness of one's
behavior in one of the joint activities will be easily known by many people. This causes people to feel the need
to follow all the activities together. Knowing each other among the citizens makes the group norms that ensure
the common good becomes more obedient and solidarity can be maintained. Meetings in joint activities are also
an important means of disseminating information about a person's reputation or trust in a business deal. In
addition to personal experience, knowledge of who entrepreneurs or workers can be invited to cooperate, new
techniques of ceramic making and new designs, can be obtained through these meetings. Whether or not
entrepreneurs or craftsmen in paying loans, or where they borrow, can also be known through such encounters.
4.2. Getting Economic Resources
Businessmen in the Kasongan industrial cluster mostly have family relationships such as parent-child,
siblings, uncles, and so on. Some entrepreneurs who are quite successful at this time are entrepreneurs who have
family relationships with one another. For example, Harnowo has a wife with a sibling with Subowo, Sartono,
and Sunaryo. Harnowo has a child who is a ceramic businessman as well, whose name is Gajah Ceramic.
Untung has three children who continue his business, while he himself has stopped his business in the field of
ceramics and work in buying and selling land. One of Untung's sons has a wife whose mother is Mujono's
younger sister, owner of Padma Ceramic. His son Untung married the son of Bowo businessman. Sartono had a
son who married the owner of Hati Ceramic. Sarwono has children who manage Manyar Ceramic, etc. Radite
has a sister who is the owner of Rose Square Ceramic. Membership in the family relations network can provide
a source of economic capital both money and other economic capital. There are, however, certain limits to
which family relationships can be a source of economic capital. Economic capital that can be obtained through
family relationships in the form of capital loans, inheritances, and the use of shared facilities.
Loans in the form of money capital are usually only in small quantities. For loans in large numbers are
usually entrepreneurs borrow at the bank. Loans through social relationships are usually done by an
entrepreneur to another entrepreneur whose relationship is very close to misalya siblings or parent-child.
Inheritance is one way of how entrepreneurs can get business capital. There are some young entrepreneurs who
have inherited business units from their parents. Old, wealthy businessmen usually reduce their activities and
give some of their businesses and capital to their children. Inheritance is usually preceded by a training process
whereby children help with the work in the business of their parents. Inheritance of this business unit occurred
for example in Laksono Ceramic and Untung Ceramic. Loans in the form of money capital are usually only in
small quantities. For loans in large numbers are usually entrepreneurs borrow at the bank. Loans through social
relationships are usually done by an entrepreneur to another entrepreneur whose relationship is very close to
misalya siblings or parent-child. Inheritance is one way of how entrepreneurs can get business capital. There are
some young entrepreneurs who have inherited business units from their parents. Old, wealthy businessmen
usually reduce their activities and give some of their businesses and capital to their children. Inheritance is
usually preceded by a training process whereby children help with the work in the business of their parents.
Inheritance of this business unit occurred for example in Laksono Ceramic and Untung Ceramic.
Rotating Savings and Credit Association (ROSCA) is a way to get capital for many small
entrepreneurs. For large entrepreneurs, social gathering is more often a means of intercourse. In Kasongan,
almost all meetings are accompanied by ROSCA activities, such as Family Welfare Education, RT community
meetings, the Community Empowerment Community Working Group, In Kasongan marriage relationships also
play a role in obtaining or maintaining economic capital. Boys from small businessmen and have a formal
education in the arts can be great entrepreneurs because of marrying girls from big businessmen.
4. The Network Governance in Kasongan Industrial Cluster
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4.3. Social Network for Getting Workers
The ceramic business units in Kasongan mostly are home industries. Its workers are mostly from
Kasongan itself. A large business unit employing over 100 people and using modern management also has a role
as a company leader and people who are still in close contact are placed in positions that require a high degree
of trust from their owners. For example a position related to money issues. Employers generally employ their
neighbors in Kasongan. Workers usually gain skills based on apprenticeship by working with their neighbors or
relatives who need them. While working they are trained by the owner of the business unit. Such workers are
usually young and middle school graduates are not able to continue to higher education level. An entrepreneur
said:
"The one who works here lives close by. The neighbors who graduated from junior high school and could not
continue their studies. I teach to paint. If they are smart and skilled, I release them, let them work independently
at home, work on a wholesale system. I am not binding, my purpose is to train them to work. I am developing
children to work to fulfill their personal needs."
The relationship between the business owner and the new worker is usually met by patience and
tolerance for errors in work. Against this apprentice the business owner usually guides to correct mistakes in
doing the work. There is no action to terminate the employment relationship by the owner of the business unit.
By the time the worker is more mature and skilled it will usually come out by itself. Tolerance is usually not
given to dishonest acts in work. Another case with workers who have grown age. Common mistakes can result
in the termination of the employment relationship.
4.4. Institutional Environment, Cooperatives, and Networks with Government
There is an institutional environment that influences how social networks in Kasongan play a role in
forming industrial clusters, namely free market competition in the sale of ceramics, the regulation to become a
cooperative as a condition of receiving government aid, the requirement that the business unit becoming an
exporter must take the form of legal entity as well as the policy of giving Capital assistance by the government.
This institutional environment limits but also serves as a channel for action in the pursuit of individual or group
interests. The following will describe how the institutional and social networks play a role in the economic
activities of industrial clusters.
4.4.1. Cooperative
There are three cooperatives in Kasongan, the Setya Bawana Cooperative (SBC), Kasongan Usaha
Bersama Cooperative (KUBC), and the Senin-Kliwon Cooperative (SKC). The formation of these three
cooperatives is formally a response from government policy that government assistance is only given to
cooperatives that are already legal entities. Initially all cooperatives were formed by members of social networks
consisting of a number of employers and workers. Each cooperative has a different history. Here will be
described about SBC. SBC stems from meeting a number of people to discuss about capital issues, supply of
raw materials, and marketing of handicraft products. The meeting formed a group of about 35 members. The
group started in 1987. From 1987 to 2006, after the earthquake, its members remained undeveloped. Meetings
until 2006 were conducted every 35 days (selapanan). To get capital assistance from the government formed a
cooperative incorporated.
Assistance was given as much as Rp 954 million with interest 0.6 percent per year. This assistance is
then loaned at 1 percent interest. The cooperative determines the principal savings of Rp 50 thousand and the
mandatory savings of Rp 10 thousand. In 2007 members borrowed between 10 to 15 million rupiah but
eventually made an average of 3 millions. In addition to lending capital, SBC also provide firewood, organizing
ceramic training for Kasongan visitors, and providing a showroom that entrepreneurs or craftsmen can use to
showcase their products. In addition to providing loans, SBC also provides training assistance for entrepreneurs
and workers (crafters), sells raw materials, and provides facilities to market ceramic products. For entrepreneurs
who are unable to export their own products, cooperatives can also help them to export ceramic products.
4.4.2. Relationship between Entrepreneurs and Government.
The government through related institutions played an important role in the development of Kasongan
ceramics industry. Initially the granting of assistance by the government was given in the form of Technical
Service Unit (TSU). TSU establishment under the auspices of Office of Industry, Trade and Cooperative Bantul.
By the TSU staff and experienced Kasongan origin craftsmen, craftsmen received training in combustion
engineering, clay matting techniques, business management, design, packing, English training, etc. In this case
TSU and cooperatives act as liaison or local organizers in providing assistance or training. Relief agencies are
not all from Disperindagkop but also the Department of Tourism, the Office of Manpower, universities, and the
Center for Ceramics Bandung. Having a network of relations with the government and the TSU is very
important for entrepreneurs who want to expand their business. In Kasongan entrepreneurs who are now large
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are the entrepreneurs who used to get help from the government. At this time, entrepreneurs with higher
education are more actively developing relationships with the government. Small entrepreneurs are usually
reluctant or have difficulty developing relationships with government. The opportunity cost of developing
rapport with the government is large enough for them.
4.5. Institutional Environment and Economic Transactions through the Network
In Kasongan industrial cluster there are four types of entrepreneurs, namely entrepreneurs who provide
clay raw materials (ECM), entrepreneurs who make terracotta ceramics (ET), entrepreneurs who make ceramic
finishing and have a showroom (EFS), and entrepreneurs who make terracotta ceramics and ceramic finishing
and have a showroom (ETFS). In transactions through the network, social relationships occur not only in the
course of transactions but take place indefinitely. The terms of the transaction are not stated explicitly in the
form of writing and there is an act of mutual support or mutual understanding between the two parties.
Economic transactions through this network show how the process of transactions inherent in social
relationships. Transactions through market exchanges will be risky for the entrepreneur in running his business.
This network transaction is the response of entrepreneurs to the institutional environment in the form of market
competition. The emergence of transactions in the form of networks here is driven by demand uncertainty,
stability of input supply, and product-specific properties.
Demand uncertainty and stability of input supply. Businessmen in Kasongan are faced with a
competitive market. Market competition, fluctuating demand, and changes in consumer tastes cause
entrepreneurs can not predict how much demand for their products. In such circumstances entrepreneurs do not
dare to produce in large numbers for fear of not sold. They newly produce in large quantity according to buyer
demand. The owners of the showroom only display a few pieces of ceramics just for each type or shape as a
sample. In the case of production input inventory it can be said that its supply is stable enough and its supply is
abundant enough. For example, ETFS and EFS entrepreneurs can easily buy terracotta ceramics to ET
entrepreneurs. ET entrepreneurs are easy to buy raw materials of clay and firewood on ECM entrepreneurs.
They also have no difficulty in getting the workforce. The main source of demand uncertainty exists only in the
demand for ready-made ceramic products. To reduce market uncertainty entrepreneurs seek to develop social
networks as a means of economic transactions.
Product specificity. The specific properties of the product appear on the shape or appearance of
ceramic decorations ready for sale or finished ceramics that have passed the finishing process. There are so
many variations of finished ceramics.The specific properties of terracotta ceramics are fewer than ceramic
finishing. The number of specific properties on the finishing ceramic design leads to the length of time required
by the ceramic buyer finishing in making the buying decision rather than the time required to make a decision to
buy terracotta ceramics. The ceramic market is a associated production market where buyers are also involved in
producing end products (Asper 2006, p 12)[20]. In this joint production process the buyer proposes certain
design forms that are deemed appropriate to the consumer demand in their country. The showroom owner does
not dare reproduce ceramics with a certain design in large quantities at once before there is a decision from the
buyer to buy. Showroom is only used to display ceramics with designs that made. Once there is a buyer's
decision to buy a ceramic with a particular design and order it then the new design is reproduced with the
amount according to the request. Sometimes there is a showroom that determines the minimum order quantity
requirement. The subscriber whose order amount is below the specified minimum requirement will not be
served. The relationship between entrepreneurs and buyers can persist for long periods of time. For example
Laksono Ceramik has a customer from France that has existed since the 1970's until now. Laksono Ceramic
himself who runs his business is the son of the founder. Business owner Rose Square Ceramic says:
"There is something like that, there are entrepreneurs who get a bayer inheritance from their parents. So his son
stayed to maintain relationships with buyers who had been built by his parents. After his parents died his son
continued his business. If the child can establish a good relationship with the buyer then he can continue selling.
Usually if the buyer is suitable will not move to other entrepreneurs to buy ceramics."
4.6. Vertical Disaggregation and Subcontracting
Vertical disaggregation is also a response to the institutional environment of market competition and
demand uncertainty. The social network in Kasongan facilitates the vertical disggregation process between large
and medium business units. For example, previous ETFS entrepreneurs also process their own raw materials of
clay but because it is considered less efficient then releasing its clay processing business, then the entrepreneur
builds a network with businessman ECM clay to meet their needs.
The relationships that exist between the entrepreneur and the craftsmen who have been awakened
facilitate the process of vertical disaggregation. For example, the business unit of Gajah Ceramic is a business
unit of ETFS. Due to the difficulty of organizing many workers and unstable ceramic demand, the Gajah
Ceramic no longer produces its own terracotta ceramics and releases some of its finishing work. To meet the
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needs of terracotta ceramics Gajah Ceramic develops a network with CEC entrepreneurs. The process of vertical
disaggregation and exchange through network links is easily established in Kasongan because entrepreneurs or
workers already know each other first's reputation respectively. This is possible because of family-based groups
and various groups and joint activities based on residential similarities as already stated
The subcontracting relationship developing within the cluster is also the reaction of small entrepreneurs
ET and ETFS and EFS entrepreneurs to market competition. ET entrepreneurs in the hamlet can not sell
finishing ceramics to retailers or wholesalers and retail traders because in general their place of business is in the
hamlets. Because they live in the hamlet, they can not open a showroom to showcase their products. ETFS and
EFS entrepreneurs can not recruit large numbers of craftsmen to become day laborers because their product
demand is not fixed. In such a situation, ETFS and EFS entrepreneurs at the moment there are many orders they
are looking for ET entrepreneurs who can be invited to do the work of making ceramics.
The subcontracting relationship between ETFS and EFS entrepreneurs with ET entrepreneurs is
informal. Subcontracting relationships may last for a long time. Violations by ET entrepreneurs against non-
intolerable subcontracting relationships may be terminated by EFS and ETFS entrepreneurs. A subcontracting
entrepreneur may break the relationship if the entrepreneur giving the contract is deemed to be no longer
satisfactory. The relationship between the contracting entrepreneur and the contractor establishes a social
relations network. With this social network the business units become more flexible and able to survive even
though the demand for products is fluctuating.
4.7. Transactional Characteristics Through Network
The very specific nature of the ceramic products makes the buyer will not move from one businessman
to another. In the transaction network both the showroom owners and buyers also give each other information
about the product market and product quality. Mutual information is an attempt to maintain network
relationships. The showroom owner provides information on the quality of the goods by explaining the raw
materials and the process of making the ceramics. The showroom owner also provides information on where the
buyer should go to another showroom that sells the ceramic with the desired design if the showroom does not
provide the design. Showroom designated usually showroom that the owner has known both the quality of the
product and personal. In contrast, in order to maintain good relationships, major merchant buyers provide
information on ceramic trends with designs that are marketable.
Rarely do the disadvantaged party overcome the problem of irregularities with legal channels. Usually
sanctions provided by the purchaser who feels aggrieved only in the form of demand for compensation or
disconnect the network. Too often the seller's misappropriation will result in his reputation among entrepreneurs
being bad and will be avoided by potential buyers. The buyer who often harms the seller by delaying payment
will not be served again at the time of ordering the goods. Sanctions against irregularities in these network
connections are usually only a network termination. Termination may be made by the buyer, if the seller is
doing the deviation, or by the seller, if the buyer is doing the deviation.
V. CONCLUSION
It has been shown how important social networking is in Kasongan ceramic industry cluster. Dense
social networks arise because of several joint activities involving many citizens who also work as both
employers and workers. By participating in such joint activities the entrepreneurs know each other, the
entrepreneurs know the workers and vice versa, and the workers also know each other. Entrepreneurs can get
information on which are good and bad workers. Entrepreneurs also get information on which entrepreneurs can
be trusted in the business. Besides, the social network also develops because of the institutional context in the
form of free market, uncertain demand of ceramics, and the uniqueness or specific nature of ceramics. Social
networks can support smooth transactions between employers, between employers and workers, and
subcontracting or vertical disaggregation. In this way, social networks support the survival and development of
the Kasongan industrial cluster.
ACKNOWLEDMENT
This article was written based on field research in Kasongan with guidance from Dr. Kamanto Sunarto and Dr.
Rochman Achwan from the Department of Sociology, University of Indonesia. Therefore I would like to thank
them both.
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