Do clusters create shared value? A social network analysis of the motor valley case

Abstract

Purpose This paper aims to contribute to the debate about creating shared value (CSV) and clusters, by shedding light on how clusters might generate shared value, i.e. cause social and business benefits, hence focusing on the following research question “do clusters create shared value?” Design/methodology/approach The study relied on social network analysis methods and techniques. Data have been collected from both primary and secondary sources, in the empirical context of the Motor Valley cluster in Emilia-Romagna. The authors computed three independent and four dependent variables to operationalize the concept of cluster development and shared value creation. A multiple regression quadratic assignment procedure and, more specifically, the most accurate model of that procedure, that is the double semi-partialling method, has been carried out to answer the research question. Finally, empirical evidence has been complemented with other cluster-level data recently collected by the Italian Cluster Mapping project. Findings The findings confirm how the development of the Motor Valley cluster in Emilia-Romagna contributed to the creation of economic and social growth opportunities for all the actors. The study shows that clusters do create shared value and the chosen cluster development variables do explain much of the business and social impact variables at a very high statistical significance level. Originality/value The paper contributes to the under-explored research on clusters and CSV with a very first attempt in providing quantitative evidence of the phenomenon.

Patterns of value creation in policy-driven cluster initiatives: evidence from the croatian competitiveness clusters

“…Scholars have started to investigate the extent to which clusters can create shared value (Porter and Kramer 2011;Belfanti 2019, 2021). For example, Alberti and Belfanti (2021) have examined the process of value creation in clusters by using the framework of shared value creation, according to which clusters can generate both business and social benefits. Cluster development is perceived as creating shared value both for the cluster community and society, beyond business benefits related to higher revenues, productivity, and innovation (Porter and Kramer 2011).…”

“…The analysis of the value creation process is particularly interesting in the context of policy-driven clusters, where the creation and delivery of specific services contribute to the enhancement of business performance (Alberti and Belfanti 2021). The literature also shows that cluster initiatives that emphasise the promotion of innovation and the diffusion of new technologies, providing technical training and thus focusing on public value creation, were more successful (Sölvell et al 2003;Lindqvist et al 2013).…”

“…We also investigate whether policy-driven clusters in the Croatian environment are just a means of cluster participants to obtain windfall profits (e.g., by externalising some otherwise internal costs) or is value to cluster participants (and mostly firms) generated by tackling some key market failures, thereby elevating their innovative and investment activities beyond prior levels. Following the assumption that cluster initiatives are collaborative organisations whose development depends on business support, we follow Alberti and Belfanti (2021) and operationalise the sources of cluster development through the business services that should be provided to members while considering the perceived performance as value creation.…”

“…The establishment of clusters by governments has been often justified by market failures associated with the provision of public goods (such as lack of skills, infrastructure, and R&D) and coordination failures (OECD 2000). Despite the growing interest in the topic, few empirical studies examine the process of value creation in cluster initiatives (Alberti and Belfanti 2019;2021). Since clusters involve different actors and local stakeholders intending to transform regional economic systems and increase competitiveness, understanding their evolution and performance represents an important step towards evaluating EU regional policy (Asheim et al 2017;Foray 2018;Lecluyse et al 2019).…”

“…The generation of public and private values in the context of policy-driven cluster initiatives depends upon cluster actors, their individual characteristics, and facilitators that coordinate and promote the process of cluster evolution and the mechanisms of growth and development, which vary substantially across different industrial sectors (Su and Hung 2009;Huang et al 2012;Ingstrup and Damgaard 2013;Hsieh et al 2012;Alberti and Belfanti 2021). Different sectors require different policy actions and services and different management approaches and cluster governance, which impacts how value is generated and delivered in policy-driven clusters representing different sectors.…”