Towards an institutional theory of the dynamics of industrial networks

The study of interorganisational cooperation has gained increased currency. An important empirical and conceptual contribution in this field owes much to the network approach. The picture provided by the network approach contrasts with other models that regard cooperation as a mere contractual and legal inter‐corporate connection. Whilst accepting the existence of formal types of collaborative arrangements, the network approach emphasises the importance of informal and emergent cooperation. This paper is an attempt to extend the current perspective by focusing on interorganisational cooperation in the context of collective action phenomena. These usually involve a large number of actors concerned with the formulation of market rules, the prevention of instability and disorder and, in general, the promotion or defence of their mutual interests. The paper offers an institutional explanation of why and how collective actions emerge and influence the shape and evolution of industrial networks.