MUSEUM AND THEATRE NETWORKS IN ITALY:DETERMINANTS AND TYPOLOGY

By Silvia Bagdadli

Working Paper N. 86/03 February 2003

MUSEUM AND THEATRE NETWORKS IN ITALY: DETERMINANTS AND TYPOLOGY by Silvia Bagdadli

Working Paper N. 86/03 February 2003

Museum and Theatre Networks in Italy: Determinants and Typology

Silvia Bagdadli Working paper Bocconi University Tel. 0039-02-5836.2629 silvia.bagdadli@uni-bocconi.it Abstract This study is about cooperation among cultural organizations and specifically among Italian museums and theatres. Thanks to a research carried out through multiple case studies, we defined a typology of cultural networks, comparing museum and theatrical networks. In order to define a typology we refer to different organisational variables, including: coordination mechanisms, size, centralisation and density. Then we studied the determinants of cultural networks and again we compared museum and theatrical networks. In order to understand the determinants we tested three different theories or explanations: 1) efficiency; 2) process theory and institutional theory and 3) resource complementarity. Results showed two very different forms of networks. The first one, defined as vertical network, centralised, formalised, scarcely connected, often motivated by surviving needs of each individual organisation and allowing members to obtain cost advantages and this is in effect the main reason for aggregation. The second one, the horizontal network, diffused only among theatres, motivated by the possibility of improving the systems quality and of innovating and exchanging resources. Keywords: networks; cultural organizations; museums; theatres; determinants; typology. JEL Codes: M19, Z11.

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1. Introduction (1) It seems ridiculous that if you have a dozen organisations, each producing a small number of events every year, you also have a dozen executive directors, a dozen office leases, a dozen marketing department. None of the organisations can really afford to engage as much staff as it needs. These words belong to Eugene Carr, Director of the American Symphony Orchestra (ASO) in San Francisco (Scheff and Kotler, 1996: 6). If this is true for an organisation of such dimension and prestige, it will also certainly be true for each of the about 2,000 Italian theatres (SIAE 1998), most of which located in small urban areas. The same might be said for Italian museums: approximately 3,450, excluding archaeological sites, most of which are of a small dimension and located not only in the famous and large monumental cities (Florence, Venice or Rome) but virtually in all towns (Bagdadli, 1997). This concise picture, concerning two of the most important Italian cultural sectors, allows us to introduce the theme of cooperation among cultural institutions achieved through networks. The term network has come into vogue in describing contemporary organisations, from large multinationals to small entrepreneurial firms, from emerging industries such as entertainment or bio-technology to more traditional industries. In this research we consider networks as modes of organising economic activities through inter-firm coordination and cooperation. A network is defined as a set of cooperative relations connecting autonomous entities (Powell and Smith Doerr, 1994). This phenomenon has reached, during the last 20 years, a remarkable level of empirical relevance in all economic sectors (Soda, 1998). In this work we aim at understanding if networks may represent a possible solution to some of the Italian cultural sectors many problems and critical areas.

2. Research objectives and main propositions Research on networks, also called inter-organisational relations (IORs) has developed for years and has produced interesting and robust results in different

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disciplinary areas. Previous research on cultural networks (Paulus, 1993; Bagdadli, 1995, 1997; Salvemini et al ,1999; Scheff and Kotler, 1996) has showed some important results; but, as far as Italian cultural networks are concerned, more systematic research is needed in order to understand if the network form has actually developed and, if so, how and why it has developed. The objective of the present research is twofold. First of all, given the scarcity of specific research, the study has the preliminary purpose of understanding if and how the network organisation is utilised in the cultural sector and, specifically, among Italian museums and theatres. We will try, in this direction, to define a typology of cultural networks, comparing museum and theatrical networks. In order to define a typology we refer to different organisational variables, including: coordination mechanisms (Grandori and Soda, 1995), size, centralisation and density. The studys second objective is to understand the determinants of cultural networks and to compare the determinants in the two sectors. In order to understand the determinants we tested three different theories or explanations: 1) efficiency; 2) process theory and institutional theory and 3) resource complementarity. The research areas and the propositions formulated in this work derive from an analysis of the theoretical and empirical literature on networks, and from specific research on theatre and museum networks. A recent research on 13 production theatres located in Milan (Salvemini et al., 1999), undertaken with the purpose of investigating the potential for development of a city network, allowed US to understand the specific characteristics of large production theatres, to explain the complexities and rigidities that may prevent theatres from acting as a system, and also to identify areas for potential cooperation. A case study research, Accademia Perduta Romagna Teatri (Bagdadli, 1995) provided an analysis of the potential benefits generated by the network form, and a better understanding of the complexities affecting Italian small and medium-sized provincial theatres. As far as museums are concerned, a research carried on in France (Paulus, 1993), a different one carried on in England (AA.VV., 2000) and some case studies concerning museum networks previously analysed by the author of this work (Bagdadli 1995 and 1997) allowed the development of specific hypotheses in the museums field.

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2.1 A typology of cultural networks A first objective of this work is to define a typology of theatre networks, by utilising the classification proposed by Grandori and Soda (1995) based on the coordination mechanisms utilised. Based on such approach, networks may belong to three different typologies: social networks, bureaucratic networks or proprietary networks. Bureaucratic networks are those inter-firm coordination modes that are formalised in exchange or associational contractual agreements (ibidem: 201). In general, bureaucratic networks are developed for the purpose of managing information complexity (Grandori, 1995). In the Italian cultural industry, considering the size and relevance of public financing, one might expect a bureaucratic network to be more frequently used in those cases where the adoption of a particular contractual form is prescribed by law or anyway necessary to gain access to public funds. The bureaucratic network, therefore, is a need imposed by the regulatory environment rather than a reaction to information complexity. When such conditions do not occur we hypothesise the existence of networks based on pre-existing interpersonal and social relations, characterised by reciprocity, information sharing and trust (Barney and Ouchi, 1985). P1. Bureaucratic networks become necessary for cultural organisations when such is a condition for access to public (often, government) financing, or when this is imposed by specific legislation. In all other cases social-type networks, scarcely formalised, will prevail. Previous research in the performing art sector (Salvemini et al., 1999; Bagdadli, 1995; Scheff and Kotler, 1999) and in the cultural sector (museums, monuments and galleries) (Bagdadli, 1997 and 2001) allowed the identification of two macro-areas for potential cooperation: the artistic area and the administrative area. Within theatres, the first one includes the planning of performance seasons, the selection of artists and all decisions concerning the shows arrangement; within museums, it includes study and research, the set up of inventories and catalogues, preservation and restoration, the exhibition of the permanent collection, temporary exhibitions, and education. The second one includes personnel administration, the management of the administrative

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aspects

associated

with

exhibitions

and

theatre

performances,

promotion,

communication and fund raising, distribution and hospitality and general services. The above mentioned studies shown how theatres and museums may generally tend to avoid cooperation when their artistic decisions and choices are in play. In Van de Vens words, organisations do not coordinate for coordinations sake. Instead, organisation strain to maintain their autonomy (Van de Ven, 1976: 28). This is particularly true when the critical function is in play, the artistic function in our case. In this research we hypothesise that organisations will externalise more

frequently to the network all those activities that are not related to the artistic function, obviously provided the theatre or the museum does have an artistic director and an operating structure. P2. Cooperation will more frequently take place for those activities or services which are not related to artistic decisions, provided the skills necessary to take choices in the artistic area are available to the organisation. We have, in addition, tried to characterise the network in terms of dimension (number of nodes linked to the network), to identify the possible existence of central agents making a distinction between centralised and parithetic networks, to measure the intensity of the relations among nodes (connectivity) (Bavelas, 1951) and to understand if there is a relation between the organisational form adopted and the type of activities that are jointly managed (ibidem). P3. Networks that provide services in areas where economies of scale are possible (structured activities), and mainly in the administrative area, will be more frequently associated with large dimensions, centralisation and low connectivity. To the contrary, networks that are more innovation-oriented (nonstructured activity) and whose aim is to stimulate cooperation in the artistic area will more frequently be smaller, balanced and more intensely connected. 2.2 Network determinants: a comparison among different theories A large part of the research on networks has investigated the reasons and determinants that lead to the creation of networks. Different organisational theories have

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formulated explanations that appear sometimes conflicting, sometimes complementary (see Soda, 1998, chapter 4, for a complete review of such theories). For the purposes of this research we have made a comparison among three principal categories, each of them comprising one or more theoretical explanations. Our objective is to understand whether a prevailing one exists, i.e. one capable of better explaining the phenomenon of cooperation among theatres and museums, or if to the contrary all three explanations are equally viable. a) Economic efficiency The first category explains the adoption of a network form on the basis of a rationale related to economic and organisational efficiency. It has been developed, among various authors, by Williamson (1975 and 1985), Teece (1980), Barney and Ouchi (1985), Mariotti and Cainara (1986). The key parameter is organisational efficiency, in terms of production costs as well as in terms of transaction costs. The structural lack of resources in the sector, the weakness of economic results, the lack of productivity improvements across centuries (Baumol and Baumol, 1993) and the small dimension of many Italian cultural institutions often associated with the absence of personnel with management skills bring to think that this explanation may be the one most frequently applicable, especially for small institutions and in those cases where a standardisation of activities is possible. P4. Cooperation among cultural organisations is determined by the search for a higher level of economic efficiency through economies of scale. b) Process explanation The theory oriented towards a process explanation of cooperation affirms that the adoption of a network form is the result of processes of isomorphism, natural selection or mutual assistance based on organisational conditions such as similarity, reciprocity or the pre-existence of social relations (Wholey and Huonker, 1993; Baum and Oliver, 1991). Similarity may concern various aspects: base values, product system, governance, geographic proximity. This similarity generates, among organisations, a fertile process for cooperation (Soda 1998). Based on the institutional theory (Zolber, 1986; DiMaggio, 1991; DiMaggio and Powell, 1991; Scott, 1995) companies more

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frequently cooperate and take similar forms (isomorphism) when a specific purpose exists, such as obtaining authorisations, complying with rules (North, 1990) or gaining legitimacy and prestige (Oliver, 1990). As said, given the high level of bureaucracy in the sector, the recent tendency of cultural administrations to grant financing to projects jointly proposed by two or more institutions, and the existence of certain rules that push towards the creation of particular network forms (for instance, the distribution circuits for theatres Ministerial circular n. 25/1998), we expect to frequently observe that the creation of networks originates from the need to comply with specific legal requirements or to gain access through cooperation to financing otherwise not obtainable. P5a. The existence of rules at national level will facilitate the creation of networks, and will also generate a similarity among the forms of cooperation originated by this factor. The existence of rules at local level (region, province) will facilitate the creation of networks among cultural organisations located in a specified geographic area (in the same region or province). Furthermore, we expect a higher level of cooperation among similar institutions, for the following reasons. First of all a similarity in the form of governance simplifies cooperation, especially in a legislative context which is highly bureaucratic and that establishes different rules for different categories of institution; in addition, a similar economic and organisational structure (the absence of an artistic director, and of personnel dedicated to the management and administration of the theatre or museum) will normally facilitate cooperation as this will probably appear as the only way to carry on an organisations cultural activity; finally, proposing similar types of performances (for instance, drama) or having a homogeneous collection might facilitate forms of cooperation aimed at innovation or at improving the quality of the proposed shows and events; sharing the same production ideals may generate a fall of the cultural barriers that prevent cooperation, hence a reduction of the pressure towards autonomy. P5b. Similarity among institutions facilitates cooperation among theatres. c) Availability of complementary resources In economic and strategic studies the existence of complementary resources is considered a key factor towards the formation of alliances. When complementary

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resources are idiosyncratic and indivisible, therefore not readily available in the market, alliances become a primary mean for the acquisition of such resources (Chung et al., 2000). Companies tend to cooperate to gain access to complementary resources or knowledge, for competitive purposes, to develop internal competencies or to share the risks of innovative activities (Haiken and Hage, 1968; Harrigan 1985; Gulati, 1995). A higher tendency to cooperate derives from the perception that sharing resources generates value for the organisations involved. As far as theatres are concerned, we hypothesise that such tendency is not particularly diffused for the reasons that follow. First of all, the sectors critical competencies i.e. the artistic competencies (scene designers, directors, actors) are readily available in the market on a temporary basis, provided the theatre does not already possess such resources on a stable basis; in this field we often observe a high level of similarity of resources, rather than complementarity, and this results in a reduced interest for cooperation. In the case of museums, on the one hand their resources profile tends to be similar and scarce, especially with respect to technical resources (space, machinery, etc.) and human resources; on the other hand, there is a potential complementarity with respect to their collections, resources that tend to be unique and therefore not readily available in the market. Therefore, a motivation to cooperate might be given by the possibility to organise events and exhibitions showing a larger and more complete range of works. Other critical resources, such as space, often are already saturated by the institutions production capacity and therefore they can seldom represent a reason to join forces. In addition, empirical research has shown that such determinant is particularly relevant in high tech industries (Sinha and Cusumano, 1991), where companies tend to seek alliances to innovate and reduce competitive pressures; on the contrary, as we mentioned, personnel is the most important resource in the cultural sector, and the role played by technology is marginal. Furthermore, artistic creativity is conceived as an individual resource, sometimes not even belonging to an institution as a whole but just to an individual in that institution (as an example, we often mention the Streheler theatre, the Ronconi theatre and so on). P6. Complementarity in the resource profile facilitates cooperation among institutions.

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In synthesis, we have hypothesised that in the cultural sector the economic and process determinants tend to prevail, whereas resource complementarity is less relevant. 2.3 Methodology To explain how and why cultural networks developed in Italy we did a multiple case study research (Yin, 1994). This methodology, frequently utilised in the research on networks (among others, Alexander, 1981), is particularly helpful when the researcher is trying to address how and why type of issues (determinants and typology in our study) (ibidem: 6). The research included 18 cultural networks: 8 museum networks and 10 theatre networks. For each case study, different sources were examined: structured interviews and document sources. For each of the networks analysed we interviewed the network coordinator (if existing) and people in some of the systems nodes; the number of interviews was variable as a function of the type of system. We chose to carry on structured interviews rather than send questionnaires, considering that obtaining information in this sector may be complex given the little amount of time normally made available by the personnel involved, their scarce propensity to be the object of a research and the difficulties associated with the interpretation of some categories of analysis. The most complex part of the research was the identification of the networks existing in the Italian territory and therefore their selection. For identification purposes, we conducted a preliminary analysis that involved: persons responsible of the cultural sector in all Italian regions; persons responsible for the cultural sector in all provinces and municipalities where a network or circuit exists; information gathered through the world wide web; interviews of various other players and institutional bodies; interviews of network. The identification of the cases that we might study was very complex. According to the interviewed personnel, cooperation among cultural organisations is particularly all those persons that were indicated as potential members of a

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difficult and this explains why the mere identification of forms of cooperation may be complex. Some of them see this as a form of parochialism typical of the Italian environment; others believe that, given the strong efforts dedicated to mere survival, little energies remain available for cooperation and innovation. As far as theatres are concerned, in almost all Italian regions (excluding Lombardy) we could find a specific form of network, below described in more detail, called Distribution circuit - recognised by the Ministry of Culture - and some other nonrecognised Distribution circuits. We decided to analyse two of the circuits recognised by the Ministry, indicated by many sources as high quality circuits. We had to consider that, according to some experts from the sector, many circuits do not function properly; in fact, some of them have been put under administrative control, and some others are capable of providing just mediocre services. Some production companies have confirmed this information and therefore, considering that all circuits have similar ways of operating, we have chosen to investigate those that seem to operate with high managerial quality and efficiency; we also hope, thanks to such selection, to have minimised the likelihood of possible misrepresentations of reality by the interviewed persons. Similar criteria have been applied for the selection of non-recognised circuits. We have identified a small number of cases outside the world of recognised or nonrecognised circuits, and we have excluded those that seemed to cooperate just for marginal activities. We also decided to include a network of opera theatres, although obviously such institutions activities are of a different nature; we did this mainly for the purpose of identifying the possible similarities between theatre and lyrical institutions and, on the other hand, the peculiarities associated with their different performances. The Lombardy Region Opera Circuit is anyway unique in the Italian landscape and may therefore be considered an exemplary case. This preliminary research, however, did not involve the various cases of co-production, that are widely diffused in the whole country, where two or more institutions agree to share the costs associated with planning, preparation and production but mainly for the purpose of reducing costs.

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Exhibit 1 Theatre networks included in the research. THEATRE NETWORK Arteven Amat Teatro Stabile di Torino Coordinamento teatrale trentino Associazione teatrale pistoiese Altri percorsi Sistema teatrale cremonese Teatri metropolitani fiorentini Circuito di Rigo Sinfonico Metropoli LOCATION Region Veneto Region Marche Region Piemonte Region Trentino alto Adige Province of Pistoia Region Lombardia Province of Cremona City of Firenze Region Lombardia Province of Milan

As far as museums are concerned, we have identified several initiatives, although most of them are still in the project phase. We have therefore decided to include only those cases that seemed beyond the project stage. Exhibit 2 Museum networks included in the research. MUSEUM NETWORKS Il sistema museale carnico Il circuito dei musei del centro di Milano Bologna dei Musei Il sistema museale provinciale di Ravenna Il sistema dei musei senesi Musei della provincia di Modena Il sistema museale trentino Il sistema museale umbro LOCATION Province of Carnia City of Milano City of Bologna Province of Ravenna Province of Siena Province of Modena Province of Trento Region Umbria

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3. Results and discussion 3.1 Cultural networks: a typology It is appropriate, in elaborating a typology of cultural networks, to distinguish between museums and theatres. 3.1.1Theatre networks For theatres, our analysis has identified the presence of two very different typical forms: centralised (vertical) networks, i.e. recognised and non-recognised distribution circuits, and parithetic (horizontal) networks. They are described in more detail here below. Centralised (vertical) networks: distribution circuits Distribution networks, historically, have been created and operate with the objective of diffusing culture in the country. Such networks may be created through private initiative (individuals whose aim is to provide a service to the various theatres) or through public initiative (two or more municipalities establish a consortium). Once the network is in place, any individual theatre may join by asking to do so and paying for the services that are necessary in the specific situation. This specific form of coordination, whose object is the distribution of shows, generates a multiplication of opportunities proportional to the number of theatres that form part of the circuit, to the advantage of production companies. Each of the theatres that participate into the circuit could not, in fact, afford on its own the costs of professional companies of a high quality; by joining a distribution circuit the theatre may externalise all the activities for which an ad hoc internal structure would be economically unfeasible. Generally, considerable cost savings are achieved by carrying on certain activities through an external structure operating for many theatres, thanks to the obvious economies of scale. Distribution networks normally provide the following services to their members: planning of the season for each individual theatre; promotion (joint as well as individual);

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supply of technical personnel for the opening of each hall; administrative management of the shows; reservations.

The members require different services depending on their specific needs. In order to perform their tasks, circuits receive financing from private individuals, from the local authority, from the municipalities associated with them (often proportionally to the number of their inhabitants) and from the Ministry (provided they are recognised). Circuits may benefit from State grants provided they may satisfy the requirements established by art. 19 of the Circular n. 25/1998. Given such legal requirements, all recognised regional circuits tend to have the same characteristics and coordination mechanisms. They, in fact, take the form of bureaucratic networks, linked by association or consortium contracts, formalised through ministerial recognition, centralised, and characterised by a low level of connectivity between the systems members; only dual links appear to exist between the coordination unit (the circuit) and the individual theatres.

Picture 1 Recognised circuits.

Circuit

The circuit normally tries to design the performing season in each individual theatre as a function of the perceived preferences of the local audience and of the requirements of the institution that owns the theatre; the circuit, in other words, does not try to impose a pre-packaged program. Normally a list of the possible performances is completed, and the list is sent to the municipalities that may propose a number of works

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within the list; a final choice is made on this basis, also in an attempt to optimise the program at the system level. Once the seasonal program is defined, the circuit may also follow the execution phase by ensuring that the companies perform their activities in appropriate locations, and by providing technical personnel if necessary. Two regional circuits in the Veneto (Arteven) and Marche (Amat) regions belong to this typology. Other non recognised circuits, therefore not entitled to government financing, operate as networks for performance distribution; they may utilise as coordinating entity a production structure, for instance a production theatre such as the theatre in the city of Torino, or a production company, such as the Pistoia system, or a local authority, as in the case of the Altri Percorsi circuit which is coordinated by the Lombardia regional authority.

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Picture 2 Non recognised circuits.

Production theatre

In terms of organisational typology, non recognised circuits are very similar to recognised circuits; they show a similar level of centralisation, a similarly low level of connectivity, and an almost total absence of relationship among the associated theatres. Their level of formalisation and the similarity of the organisational forms adopted are lower, as the absence of government recognition allows a higher level of autonomy. However, such circuits involve private theatres as well as theatres owned by local administrations, therefore in almost all cases the resulting relationships are formalised through conventions in order to facilitate the exchange of services. From this perspective, also non recognised circuits appear to be bureaucratic networks. With respect to the propositions that were formulated above (P1 and P2), this form of network confirms the presence of bureaucratic mechanisms in order to comply with existing rules; its high level of centralisation and low level of connectivity reflect the type of activities that are centralised. Parithetic (horizontal) networks As opposed to circuits, we may identify forms of cooperation among theatres that do not involve only the process of seasonal event planning for each individual theatre, carried on by an entity recognised as Circuit or by a different entity, or the circulation of shows within the circuit. The cases that are presented in this section are considerably different from the preceding ones, first of all based on the organisational form which is actually used.

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Picture 3 Horizontal networks

These networks normally show a low level of centralisation (2), they mainly represent forms of association between equals, they show a high level of connectivity, and the exchanges between members are frequent and involve all the systems nodes. In addition one may note a wider variety of forms, and a higher differentiation in the theatres dimensions and in the organisational solutions adopted. They normally involve a lower number of parties (typically between 3 and 10) (3) whereas the cases discussed before normally involved a number of parties comprised between 15 and 40. The areas of activity may also include the artistic function with respect to staging (Lombardia regional Opera Circuit, Teatri Metropolitani Fiorentini, Metropoli), the coordination of performing seasons (Sistema Cremonese, Teatri Metropolitani Fiorentini), and the selection of artists (Lombardia regional Opera Circuit). The relationships between members are often of an informal nature and project, idea and value sharing is strong. These networks have the shape of social rather than bureaucratic networks. This is in line with the type of activity that they carry on, which is less structured and more innovation-oriented (propositions P1 and P3 confirmed). Our analysis does not confirm the hypothesis that networks among those theatres that do have an artistic direction do not share artistic decisions; on the contrary, the level of cooperation is particularly high in the case of Lombardia regional Opera Circuit and in the Teatri Metropolitani Fiorentini case, networks where each theatre has a director.

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Certainly, however, these two cases represent an exception, rather than the rule, in the Italian landscape. 3.1.2 Museum networks As far as museums are concerned, eight cases analysed show many similarities; one might even say that they belong to one typology, with minimal variance in the sample. The main characteristics may be summarised as follows. First of all, we are dealing with bureaucratic networks, within which the relationships among the different parties are normally formalised through a convention an instrument that facilitates the access to public financing and, in general, the relationship among the institutions that are part of the public sector (P1 confirmed). The networks dimension is medium or large, with 25 museums for each system on average, with a minimum of 5 (Milano) and a maximum of 54 (Modena). They tend to be highly centralised, and are centred on a local authority which is also the main sponsor; for 5 systems the level of connectivity observed is low (semi-annual meetings) and medium for 3 systems (at least quarterly meetings). The networks mainly carry on activities aimed at valorisation, promotion, information and communication; in some cases the initial task of the system has been restoring, restructuring or re-opening museums (in this case with standardised settings) and publishing catalogues; the network normally carries on management and administration activities with respect to common projects. A centralisation of scientific activity appears to exist only for those systems whose organizations are not staffed with artistic personnel, as for instance in the Umbria system (P2 and P3 confirmed). Joint exhibitions are rare. The network which does not seem to fit the above description is the Milano Centro network, which is jointly promoted by museum directors and by the public administration, small, more connected and parithetic. 3.2 Tests of propositions concerning determinants of cultural networks The proposition that economic efficiency is an important determinant for the establishment of networks is confirmed (P4). In all the 18 networks considered each

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individual organisation and the systems centre affirm that one of the reasons for the creation of the circuit is the possibility to achieve economic advantages; this, thanks to the economies of scale deriving from the centralisation of services, or thanks to the possibility of providing a larger range of services without a proportional increase in costs. Participating in the network is often the only possibility for the members to pursue their cultural objectives with acceptable quality standards; this is a consequence of the small scale of most of the associated institutions. Many of the interviewed institutions admit their inability to provide, on their own, the same services and the same quality standards; in many cases, without the participation in the network, they would simply not be capable to perform any activity (most museums and theatres were closed before the creation of the network). The possibility to share their audiences (therefore achieving a scale effect due to a higher number of visitors, or to a larger public) is a determinant indicated by all the museum networks; for theatres, it is indicated by the Teatri Metropolitani Fiorentini network, by the Cremona network and by the various Poles belonging to Metropoli; for the remaining theatre networks, the physical distance existing between the participating institutions does not allow an exchange. Certainly the exchange of the audience resource has an impact on economic efficiency, but we have interpreted it as an indicator of resource complementarity too, as the shared audience is certainly a critical resource. The propositions concerning the process explanation are also verified in all the cases analysed. Participating in the network normally determines a preferential access to public resources, granted in accordance with national and local laws that assign a priority to joint projects. Also the proposition that the similarity between institutions is a facilitating condition for the creation of networks is confirmed (P5b). Similarity may concern different aspects. First of all, the analysed networks are homogeneous with respect to their geographic location we have regional or provincial or municipal networks, and this allows them to get the benefits of financing granted by the respective local authority (P5a). The sharing of common values is expressed, by the founders or members, as an

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intention to achieve a larger diffusion of culture in their territories without incurring often unbearable costs. Networking organisations are similar also with respect to their institutional characteristics: most theatres or museums are directly managed by municipalities, and many of them do not have personnel capable of contributing to the institutions cultural activities or to organisational tasks. For museums, the similarity between different networks is also a consequence of an isomorphism process (Baum and Oliver, 1991) and of a process of imitation between different cultural administrations; when designing local systems, the cultural administrators take decisions also by making comparisons with systems already existing in their region or in different regions. Resource complementarity, in the case of museums, does not represent a determinant for cooperation, also considering that networks are often sponsored by local administrators and include museums whose collections are not homogeneous. Identifying general conditions seems harder in the case of the four parithetic (horizontal) theatre networks. Despite some legal similarities between the networks theatres (for instance, belonging to the same category the theatres of tradition in the Lombardia regional Opera Circuit), the similarity often concerns the product system, i.e. the specific niche occupied (Van de Ven and Walker, 1984; Gulati, 1995). This facilitates the aggregation process through the sharing of common values, but the reason for aggregation is often identified as the complementarity of resources and the possibility to share a common know how (jointly with similarity or as an alternative to it). Complementarity of resources is, in effect, a reason for aggregation only in the case of horizontal theatre networks. In the case of Metropoli, for example, complementarity exists with respect to the cultural goods owned by other municipalities (churches, castles) that may be valorised through performances organised by other municipalities. In the case of the Teatri Metropolitani Fioentini system, space and competencies for production and distribution are complementary resources. In the Lombardia regional Opera Circuit, the chorus and the orchestra are complementary resources for the entire artistic production. For the Cremona system, the complementary resource is in a sense the audience; considering that the performed genres are different, but the theatres are geographically close and an incentive therefore exists to coordinate programs with the aim of increasing the systems overall audience. The same may be said for museum

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systems that try to share audience through forms of joint promotion. In most cases, however, the general scarcity of resources and the similarity of the resources available make this a secondary determinant. 4. Conclusions As a conclusion, and to summarise the results of this work (Exhibit 3), two forms seem to surface from the cases analysed, very different between them in terms of both organisational type and determinants. Exhibit 3 Summary of the researchs results
CASE STUDY THEATRE NETWORKS ARTEVEN Vertical network (VN); high All confirmed formalised (HF); low connectivity (LC); Bureaucratic network (BN); big dimension (BD) AMAT CIRCUITO TEATRALE DI TORINO COORDINAMENTO TRENTINO ASSOCIAZIONE PISTOIESE ALTRI PERCORSI SISTEMA CREMONESE TEATRI FIORENTINI CIRCUITO D RIGO SINFONICO METROPOLI MUSEUM NETWORKS CARNIA REGIONE UMBRIA SBOLOGNA RAVENNA PROVINCIA DI SIENA MODENA PROVINCIA DI TRENTO MILANO VN; HF; LC; BN; MD VN; HF; LC; BN; BD VN; HF; LC; BN; BD VN; HF; LC; BN; BD VN; HF; LC; BN; BD VN; HF; LC; BN; BD VN; HF; LC; BN; MD PN; LF; HC; BN; SD All confirmed All confirmed All confirmed All confirmed All confirmed All confirmed All confirmed All confirmed PN; LF; HC; SN; SD VN; LF; HfC; SN; BD All confirmed except P2 All confirmed except P2 VN; HF; LC; BN; BD VN; HF; LC; BN; BD VN; HF; LC; BN; BD VN; HF; LC; BN; BD VN; HF; LC; BN; BD SD METROPOLITANI PN; LF; HC; SN; SD All confirmed except P2 All confirmed All confirmed All confirmed All confirmed All confirmed TYPOLOGY RESEARCH PROPOSITIONS

Parithetic network (PN); LF; MC; SN; All confirmed except P2

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On the one side the study highlights those networks that we have defined vertical, theatre circuits, recognised or non-recognised, and museum systems. These centralised networks, formalised and scarcely connected are often motivated by surviving needs of each individual organisation. A participation in the network is, in many cases, the only possibility to perform an activity with continuity and with acceptable quality standards. The system allows members to obtain cost advantages and this is in effect the main reason for aggregation. On the other side, but only for theatres, we find horizontal networks, motivated by the possibility of improving the systems quality, of innovating and exchanging resources. Networks were created not only just for a survival strategy but for a competitive strategy at the systems level. Innovation and exchange of resources are part of the reasons that push in the aggregation direction. The logic is a systemic one. To this last category, as already noted, belong a minority of the analysed systems and anyway the cases identified in Italy are rather rare. We believe that, as of today, this form is not largely developed and that therefore strategies based on complementarity of resources are still not widely pursued (although they are not entirely absent); this will probably represent the evolution of networks in the cultural field; this will happen as soon as the sector reaches a more mature stage, and provided cooperation is perceived as a tool for innovation, success and access to critical resources. This second form of cooperation among institutions is certainly less diffused but probably it is also harder to identify, because of the small dimension of the entities involved and of the overall lower level of formalisation. We believe that future research should focus on the study of this second type of networks, trying to identify them by getting in direct contact with the cultural organisations. As a matter of fact, the main limit of this work lies in the means utilised for the identification of the cultural networks that operate in the Italian territory; as we said before, we used mainly contacts with local administration (region, province, municipalities); this limit is mitigated, however, by the fact that joint projects are often financed through public resources and therefore known to the local administrations. We believe that future research will be able to highlight many different examples of cooperation, beyond those analysed in this study; we also believe that the innovation

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capabilities of the Italian cultural sector will be largely improved by forms of cooperation among different cultural institutions. Some of the professionals operating in the cultural sector, trying to explain the low cooperation propensity that may be observed in the sector, believe that the interest to form strategic alliances is reduced by the same existence of public financing, and that this in turn is a limit to the sectors innovation potential. This because often the institutions efforts are mainly aimed at complying with the regulatory requirements imposed as a condition for access to public resources, which make survival possible; little room is therefore left for efforts aimed at generating new ideas and projects, closer to the potential audiences interests. This, in turn, reduces the institutions potential for true income generation, in a vicious circle that in the end frustrates the overall systems potential for development through cooperation strategies. The local administrations present approach, based on allowing preferential treatment to joint projects, represents a move in the right direction; public support per se is not reduced, but simply channelled towards common initiatives, whose success will be an incentive for spontaneous cooperation in a virtuous circle perhaps capable of changing the overall sectors shape.

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End Notes (1) This work has been financed by Bocconi University in the frame of the Support to basic research year 2000 program. We wish to express our gratitude to those institutions that have provided information for our empirical research, and to the representatives of such institutions. We also wish to thank Roberta Landini and Elena Lesmo for their relevant and critical work in collecting information and data from museums and theatres. (2) An exception is Metropoli, with the Centro-Polo municipalities. (3) Metropoli involves a total of 61 municipalities, but a maximum of 10 (7.5 in average) in each of the 8 Poles.

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Danilov, V J. 1990. "Museums Systems and How They Work". Curator, 33, 4. DiMaggio, P. J. 1991. Constructing an Organizational Field as a Professional Project: US Art Museums 1920-40, in The New Institutionalism in Organizational Analysis, W. W. Powell and P. J. DiMaggio, eds., Chicago: Chicago University Press, p. 267292. DiMaggio P. J., Powell W.W. 1991. The Iron Cage Revisited: Istitutional Isomorphism and Collective Rationality, in The New Institutionalism in Organizational Analysis, W. W. Powell and P. J. DiMaggio, eds., Chicago: Chicago University Press, p. 63-107. Grandori, A. and Soda, G. 1995. Inter-firm Networks. Antecedents, Mechanisms and Forms. Organization Studies, 16, p. 183-214. Friedman, M. 1986. The Elusive Promise of Management Cooperation in the Arts, in Nonprofit Enterprise in the Arts, P.J. DiMaggio, ed., New York: Oxford University Press, p. 212 e ss. Gualazzi, L., a cura di, 1994. Lombardia Spettacolo. Milano: Regione Lombardia Settore Cultura e Informazione e AGIS Lombardia. Deepak, K., Singh, H. and Lee, K. 2000. Complementarity, Status Similarity and Social Capital as Drivers of Alliance Formation. Strategic Management Journal, 21, p. 1-22. Harrigan, R. 1985. Strategies for Joint Ventures. London: Lexington. Oliver, C. 1990. "Determinants of Interorganizational Relationship: Integration and Future Directions". Academy of Management Review, 15, 2, p. 241-265.

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Teece, D. J. 1980. "Economies of Scope and the Scope of Enterprise. Journal of Economic Behaviour and Organization, 1, p. 223-247. Van de Ven, A.H. 1976. On the Nature, Formation and Maintenance of Relations Among Organizations. The Academy of Management Review, p. 84-96. Van De Ven, A.H., Walker, G. and Liston, J. 1979. "Coordination Patterns Within an Interorganizational Network". Human Relations, 32, 1. Van de Ven, A.H. and Walker, G. 1984. The Dynamics of Interorganizational Coordination, Administrative Science Quarterly, 29, 4 (pp. 598-621). Williamson, O. 1975. Markets and Hierarchies: Analysis and Anti-trust Implications. New York: Free Press. Williamson, O. 1985. The Economic Institutions of Capitalism: Firms, Markets, Relational Contracting. New York: Free Press. Wholey, D.R. and Huonker, J.W. 1993. Effects of Generalism and Niche Overlap on Network Linkages among Youth Service Agencies. Academy of Management Review, 36, 2, p. 349-371. Yin, R.K. 1994. Case Study Research. Thousands Oaks (CA): Sage Publications. Zolber V. L. 1986. Tensions of Missions in American Art Museums, in Nonprofit Entreprise in the Arts: Studies in Mission and Constraints, P. J. DiMaggio, ed., New York: Oxford University Press, p. 184-198.

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Silvia Bagdadli is Associate Professor of Organization at Bocconi University, Milan, Italy. She teaches courses at undergraduate and graduate level in Organization Theory, Human Resource Management and Arts Management and executive courses at the Business School of Management of Bocconi University. She did several researches related to the cultural sector, presented several papers at International conferences on Arts Management (AIMAC) and published two books: the first one in 1997 on Museum Management in Italy and the second one in 2001 on Museum Networks. Bocconi University has several degree in Economics, Management, and Law, both at undergraduate and graduate level, including a degree in The Economic and Management of the Arts (CLEACC).

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