The conventional wisdom holds that U.S. political institutions are inhospitable to industrial policy. The authors call the conventional wisdom into question by making four claims: the activities targeted by industrial policy are increasingly governed by decentralized production networks rather than markets or hierarchies, “network failures” are therefore no less threatening to industrial dynamism than market or organizational failures, the spatial and organizational decentralization of production have simultaneously increased the demand and broadened the support for American industrial policy, and political decentralization (...) is therefore likely to improve the functioning of industrial policies designed to combat network failures. (shrink)

The article uses a case study of relationships in American manufacturing industries to demonstrate the utility of documenting the “relational work” that managers do as they negotiate circumstances where either roles or norms are ambiguous. It shows that the explicit identification of the role that relational work plays in those relationships story militates for—and extends, improves upon, and arguably completes—a particular understanding of what economic sociologists should mean when they talk about the “embedding” of the economic in social relations. The (...) article hence shows the utility of jointly using otherwise disparate perspectives in the analysis of interorganizational relationships, and thus contributes to the development of a more unified paradigm in economic sociology. (shrink)