Exogenous Shocks and Cluster Change in the Howrah Foundries: Dynamics of Conflict and Fragmentation

Abstract

Exogenous shocks play a crucial role in cluster evolution and change. Yet the mechanisms and processes driving these changes have been relatively underexplored. Furthermore, cluster change studies have focused more on cooperative dynamics. The conflict dynamics in a cluster have received somewhat less attention. Therefore, the present study examines the impact of the exogenous shock on conflicts in a cluster. The Howrah foundry cluster in India constitutes the empirical context of this study. Our findings point to group-level conflict and fragmentation as crucial mechanisms of cluster change. The study further explores the role of rival associations in cluster governance. It shows that rival associations can lead to equitable distribution of opportunities in the cluster. The study also contributes to Indian business history literature. It sheds light on the growth dynamics of small-scale industries and indigenous entrepreneurship in the Howrah district of India. It further brings attention to relatively underexplored data sources in Indian business history.