Emerald | Competitiveness Review: An International Business Journal incorporating Journal of Global Competitiveness

How clusters evolve

Peter Zettinig, Zsuzsanna Vincze — 2012-03-23 00:00:00.0

Abstract

Purpose – The purpose of this paper is to construct a process theory of cluster development, in order to complement the many studies focusing on the factors that determine successful clusters. Design/methodology/approach – This theory-building effort relies on event-driven methodology, which triangulates narratives collected at different points in time with other documented materials, in order to trace cluster development over a six-year period. The empirical data are analysed according to theoretical classes formed a priori and anchored in Aldrich's framework of emergence, events and consequences. The idea is to identify critical events that subsequently inform theory development. Findings – The authors show that three critical processes drive sustainable cluster development: the exploitation of current opportunities, the exploration of future opportunities, and processes that facilitate the balancing of the two. Whereas the conceptual focus in the extant literature is on exploration and exploitation processes, the authors find that balancing processes are also critical. Practical implications – The paper's findings are of practical relevance to private and public policy makers with regard to the management and financing of balancing mechanisms that help to secure sustainable development. The authors will continue to follow the development of this specific cluster in order to identify a wider range of sub-processes that contribute to the long-term viability of clusters in general. Originality/value – This work is original in the sense that it extends March's exploration and exploitation theory, applies it to the inter-organisational context of clusters, and links the two processes through a process of balancing. The empirical evidence and the methodological approach used contribute in terms of building a “real process theory”, according to Aldrich's specification of an event-driven research approach.

Trust, learning and a firm's involvement in industrial clusters: a conceptual framework

Kuei-Hsien Niu, Grant Miles, Seung Bach, Kenichiro Chinen — 2012-03-23 00:00:00.0

Abstract

Purpose – The research of industrial clusters, trust, and learning can be traced back to early strategic management and organization theory. The purpose of this paper is to review past literature and offer a conceptual framework that is related to industrial clusters, trust and learning. Design/methodology/approach – This study incorporates a literature review to filter key factors of industrial clusters, trust and learning by using a deductive approach to conclude a conceptual framework. Findings – This study provides a conceptual framework which includes a firm's industrial cluster involvement, trust and learning. Based on the literature, inter-organizational trust may be strengthened due to reduced proximity and better information flow within a cluster. Further, industrial clusters encourage co-evolution and co-adaptation that stimulates effective learning practices for clustering firms. Research limitations/implications – This study uses a literature review and offers a conceptual framework to examine a firm's involvement in industrial clusters with the possible influences of trust and organizational learning. There is a need for empirical as well as statistical analysis to validate the framework and to obtain more insight. Practical implications – Industrial clusters are widely considered a network-based industrial system, with the aim of adapting to fast-changing markets and technologies as an organized whole. Firms within a cluster can work together to co-evolve for the purpose of enhancing competitiveness and entering the world market through effective learning and inter-firm trust. As the sum of the benefit of a cluster is of greater value than each individual company or institution, whether to be involved in an industrial cluster to sustain competitiveness and enhance learning is worthy of managers' consideration. Originality/value – The major contribution of this work is that it is the first attempt to produce the measures for a firm's involvement in industrial clusters for empirical tests, which are generally considered insufficient in this area of research. Further, this study offers a conceptual framework which brings cluster, trust and learning together for future empirical study.

Specialization of regional clusters and innovative behavior: a case study

João Ferreira, Susana Garrido Azevedo, Mário L. Raposo — 2012-03-23 00:00:00.0

Abstract

Purpose – The purpose of this paper is to study the specialization of regional clusters and their innovative behaviour, in a particular Portuguese region. Design/methodology/approach – A regional case study (Region Centro of Portugal) is used, employing secondary and primary data in order to measure specialized critical mass of a region's clusters and analyze their innovative behavior following the European Cluster Observatory (ECO) methodology. Findings – Combining the different nature of data (primary and secondary), this paper identifies the specialized critical mass of a region's cluster, makes statements about the role of clusters in a regional context, and demonstrates how a regional clustering approach is important to understanding the innovative process. Based on an empirical survey, three types of clusters were found: basic, intermediate and advanced. Research limitations/implications – Among the research limitations is the undersized sample of primary data which does not allow deep findings to be drawn about the innovative behavior of the clusters in a general way. Therefore, future research should focus on this area, extending the empirical analysis presented here to add qualitative indicators on innovative behaviour, to calculate the impact of absorptive capacity in the case of regional clusters. Practical implications – This study provides a consistent methodology of cluster operation which could be useful for undertaking comparative work within regions' clusters across different sectors and countries, to reinforce the importance of the current discussion of policy clusters, and to identify specific requirements and needs of each cluster in order to improve the quality of decision making and to draw some policy implications. Originality/value – This paper is the first to measure specialized critical mass of a region's clusters at the enterprise level and to explain cluster innovative behaviour, combining primary and secondary, based on ECO criteria. Furthermore, it provides initial empirical evidence and an amount of significant findings to support managers and policymakers in the understanding of regional and innovation clustering of small to medium-sized enterprises.

A note on value creation in consumption-oriented regional service clusters

Pi-Feng Hsieh, Chung-Shing Lee — 2012-03-23 00:00:00.0

Abstract

Purpose – The purpose of this paper is to differentiate traditional industrial clusters from emerging consumption-oriented and destination-based regional service clusters (e.g. entertainment, service-based tourism, and convention destination); to develop an analytical framework to examine the impacts of both cluster and network effects in service clusters; and to offer implications for managing service innovation to enhance regional development and global competitiveness. Design/methodology/approach – By applying industrial cluster, strategic network, and value creation theories, this research develops a framework to study value creation in service clusters. Findings – The research concludes that firms' decisions to enter or exit a service cluster depends on the net strategic effects, which is the sum of agglomeration economies (i.e. cluster effects) and the economies of network (i.e. network effects). Research limitations/implications – Further empirical research is needed to determine the significance of both cluster and network effects that determine firms' decisions to enter the service clusters. Practical implications – First, firms need to incorporate cluster-specific elements, such as experience economy, value networking, and service innovation to maximize the consumer's use value or perceived customer benefits. Second, in order to increase consumers' willingness to pay a higher price, firms located inside the service clusters need to adopt strategies, such as product or service differentiation, that increase the perceived benefits or use value of customers. Third, service cluster firms' other objectives should be to minimize location-specific cost differentials by capitalizing on the positive effects of both agglomeration economies and economies of network. Fourth, public policy implications need to include laws and regulations that encourage and promote innovation and new ventures creation, competition in the marketplace, and capital investment to maximize value creation. Finally, policy makers need to promote high value-added economic activities in the service clusters in order to maximize consumer welfare. Originality/value – A growing number of policymakers and scholars have recognized the significant economic contributions from the consumption-oriented regional clusters. This paper is the first effort to develop an analytical framework to study value creation in service clusters for effective managerial and policy decisions.

Guest editors’ introduction to the special issue on regional clusters and global competitiveness

2012-03-23 00:00:00.0