ABSTRACT
Observers of the cultural industries are often struck by the ability of transnational corporations to use their power to reshape local cultures to suit their strategic needs. The size and visibility of these corporations, however, often obscures the emergence of networks of small enterprises that congregate regionally in clusters of intense cultural production and innovation. Key to the survival of these regional clusters are norms and practices that facilitate transactional coordination by creating a substantial level of familiarity and trust among potential trading partners (Storper, 1997, p. 80). In the cultural industries, the emergence of these small firm networks (SFNs) reduces the inevitable barriers to trading that arise when potential partners from different cultures and with different values have to exchange or share resources that are by their very nature intangible and difficult to protect.
