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Restructuring Networks in Post-SocialismLegacies, Linkages and Localities$
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Gernot Grabher and David Stark

Print publication date: 1996

Print ISBN-13: 9780198290209

Published to Oxford Scholarship Online: October 2011

DOI: 10.1093/acprof:oso/9780198290209.001.0001

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Towards Industrial Districts? Small-Firm Networking in Hungary

Towards Industrial Districts? Small-Firm Networking in Hungary

(p.176) 7 Towards Industrial Districts? Small-Firm Networking in Hungary
Restructuring Networks in Post-Socialism

Gernot Grabher

David Stark

Oxford University Press

This chapter reports the findings of research conducted in a village near Budapest where a type of economic organization corresponding in many respects to what is known as the industrial district phenomenon was found. The investigation reveals that it is possible in Hungary, too, for relatively capital-rich members of an area to become entrepreneurs by collaborating rather than competing with one another. It argues that co-operation allows an undertaking to include even those individuals who could not otherwise satisfy the conditions for operating an independent business. In the course of the research, three values were found to be central to co-operating between entrepreneurs: professional competence, trust, and ethnicity.

Keywords:   trust, ethnicity, professional competence, co-operation, Budapest, industrial district phenomenon, collaboration

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