Local Production Systems and Organizational Change: Hierarchization and Competing Firm Networks in Marinha Grande,Portugal

European local production systems have evolved and restructured in recent decades. One path of change has been an internal reorganization towards more hierarchization among local firms and the emergence of formal firm networks and an economic reconcentration. This article supports these observations and provides evidence from the mould industry in Marinha Grande, Portugal. The formal firm networks are, however, heterogeneous and they constitute new competitive strategies, that challenge the historical organization and institutions of the industrial districts and local production systems in which small was beautiful.