Through thick or thin? The performance and operation of firms and the institutional thickness model

The idea that “institutional thickness” is an important component for the resilience of local economies continues to attract attention several years after the seminal work on the subject by Amin and Thrift (1994). In Melbourne's northern suburbs, one manufacturing sector has recently seen significant job growth. Coinciding with this trend is the emergence of regional economic development bodies. Have they influenced the performance and operation of firms? Results from interviews with firm managers suggest not, with non-institutional factors predominating. This “business as usual” scenario suggests local economic development strategies have limitations.