Greening as strategic development in industrial change – Why companies participate in eco-networks

Abstract

Networking between companies and other regional key actors has grown into a widespread instrument for economic development since the 1990s. Participatory networks have formed the concept for many activities of Local Agenda 21. Simultaneously, economic geography has focused on network theories to explain innovation in and the economic success of regions. This article focuses on the reasons why individual actors participate in environmentally oriented information networks. The questions approached are: Does the concept of learning within networks influence a firm’s development? How do the participants interact with each other? What effects do the networks have on their environment (arenas)? The changing arenas of a firm are analysed with regard to environmental concerns. These changes need to be anticipated for reliable strategies. To gain information and knowledge about current behaviour and activities, the functions of networks as learning platforms are discussed. Drawing upon arguments from different network theories, the motivations of participating in a network are threefold: actor and firm oriented, network internal (inter-firm), and network external. From these, a generic target cube of network motivations and actions is set up. The concept is reviewed by examining 12 ‘regional environmental information-oriented corporation networks’ (RUN) in the Greater Munich Area. The empirical material reveals that this type of network does not provide a guarantee for significant improvements in a firm’s environmental behaviour. However, participants learn about best practices while pursuing explicit or implicit aims as to influence their arenas.