Mechanism Underlying the Formation of Virtual Agglomeration of Creative Industries: Theoretical Analysis and Empirical Research

Abstract

Industrial agglomeration serves as an effective model for developing the creative economy and manifests itself as the interdependence of creative subjects in geographical space. The traditional methods of resource agglomeration have undergone tremendous changes due to the development of digital technology. These transformations have given birth to a new organizational form of the virtual agglomeration of creative industries. The present work uses field interviews and grounded theoretical research methods to construct a theoretical model of this new organizational phenomenon. Questionnaire surveys and empirical testing using structural equation models are here combined to systematically analyze the formation mechanism of the virtual agglomeration of creative industries. The results show that digital technology, virtual platforms, digital creative talents, digitization of cultural resources, and government policies have driven the formation of the virtual agglomeration of creative industries. This has been achieved through network collaboration, freedom of participation, and trust guarantee mechanisms. The effect of emerging consumer demand on the virtual agglomeration of creative industries is not significant. In addition, the implications of this research are also considered and discussed.

Influence Mechanism of High-Tech Industrial Agglomeration on Green Innovation Performance: Evidence from China

“…As for the ways that high-tech industrial agglomeration can promote local green innovation, this paper argues that, in addition to the above reasons, a very important reason comes from the human capital promotion effect of high-tech industrial clusters. When the agglomeration of high-tech industry is gradually strengthened, it will provide many jobs suitable for high-level talents [17] and form a platform for high-level talent exchange and development space [18]. Talents are also inclined to stay in an environment with high technical level to enjoy positive knowledge spillover [19].…”

What Causes the Virtual Agglomeration of Creative Industries?

“…As the main carriers of virtual agglomeration, network platforms are characterized by openness and inclusivity [42] and facilitate low-cost, high-efficiency connections between numerous subjects, such as creative product/service providers, creative consumers, and related institutions. Based on intelligent algorithms, perfect rules, and humanized service functions of creative network platforms, participants can also realize precise information matching, network collaboration, and value trading [3]. This emergence of virtual agglomeration in creative industries thus creates a need for systematic research on the causes of its formation.…”

“…In addition, few studies have systematically developed theoretical frameworks to study the mechanisms of these driving factors. Chen et al [3] only proposed the mechanisms of network coordination, freedom of participation and guarantee of trust based on interviews and questionnaires of creative industries, but they did not analyze these mechanisms in depth. Because the creative industry's virtual agglomeration is a new type of relationship formed in a virtual space, existing research conclusions regarding geographic agglomeration cannot be used to explain its formation.…”

“…Ninth, the driving mechanism of virtual platform facilities is reflected in network collaboration [109], freedom of participation [3], and the guarantee of trust [110]. Diversified service functions, efficient information sharing [111], and convenient transaction processes of virtual platforms [112] help establish close network collaborations between creative enterprises, thereby reducing production costs, improving service efficiency, and enhancing value creation [113].…”

“…Meanwhile, the US-based creative gaming platform Steam brings together thousands of game creators and publishers; it offers about 30,000 games played by over 90 million users around the world [2]. These types of virtual agglomeration practices extend beyond traditional concepts of geographical agglomeration; we call this phenomenon "the virtual agglomeration of creative industries" [3,4].…”