A Transaction Cost Approach to Analysing Industrial Districts

Christian Serarols, Mary Jesselyn Co, Daniel Spohn

Research output: Contribution to journalArticleResearchpeer-review


This article determines whether transaction cost theory can be used as a
framework for analysing industrial district relationships, using the Gnosjö/Anderstorp industrial district in Sweden as a case example. Interviews with six firm owner/managers, representatives from the trade union and the local industrial development centre were conducted. Data was analysed using pattern matching in accordance to the theoretical framework. The findings indicate that interfirm relationships in the industrial district are motivated by the desire to reduce transaction costs. The article offers an alternative perspective in analysing industrial districts as current studies use network theory in explaining the industrial district phenomena.
Original languageEnglish
Pages (from-to)235-252
Number of pages17
JournalInternational Entrepreneurship and Management Journal
Issue number2
Publication statusPublished - 2008


  • Industrial districts
  • transaction cost
  • small firms
  • interfirm cooperation
  • Sweden
  • manufacturing

Cite this