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IS TRUST A DRIVER FOR TERRITORIALLY EMBEDDED INDUSTRIAL SYSTEMS? A CASE STUDY OF THE HOME-BUILDING INDUSTRY IN NORWAY

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Abstract:

ABSTRACT

Trust is said to be necessary for creating and maintaining territorially embedded industrial systems. On the basis of data for the Norwegian home-building sector, this article analyses trust and price competition; how trust is built and dismantled; and trust and place. The main findings are that: trust and price competition interact, but trust is more important in the design and planning phases than in the construction phase; economic factors are important for building trust, together with competence and team work; and trust is related to space, partly through places embodied in trust and partly through trust embedded in places. However, this embeddedness is not like that which has long been claimed to exist in territorially embedded industrial systems, but embeddedness where trust acts as a reinforcement, contingent upon other factors, as a capacity restraint and a socially constructed need for face-to-face meetings.

Keywords: home-building; territorial embeddedness; trust

Document Type: Research Article

DOI: http://dx.doi.org/10.1111/j.1468-0467.2007.00265.x

Affiliations: Norwegian Institute for Urban and Regional Research PO Box 44 Blindern N-0313 Oslo Norway, Email: geir.orderud@nibr.no

Publication date: December 1, 2007

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