Strategic development of network clusters

Abstract

Purpose -The purpose of this study is to use current literature in conjunction with the insights from a detailed analysis of current practice to clarify and extend the knowledge of networks of clusters. Design/methodology/approach -This research is an exploratory study of cluster formation and global competitiveness. By applying cluster and network theory, this study examines critical elements of high-technology networks and clusters. A case study of two clusters in Taiwan and two in China reveals both intra-and inter-cluster network relationships. Findings -This research concludes that networks of clusters do exist and they carry potential advantages for both firms' and clusters' competitive advantage and innovation. Close network relationships and interdependences of industrial clusters have contributed significantly to the competitiveness of high-technology clusters in the Asia-Pacific region.Research limitations/implications -Further research is needed to determine what conditions best promote inter-cluster networks and when such networks are likely to generate the most value. Practical implications -First, the relationship among firms in an industrial cluster may be viewed as not only extended supply chains but also as more complex network forms. Firms in a cluster may work together to co-evolve for the purpose of enhancing competitiveness. This process is worthy of further attention from managers looking to more rapidly develop the competitiveness of their firms. Second, the industrial clusters offer a relatively favorable environment that allows the participating firms to more easily pool the resources, investments, and synergies necessary for them to become competitive in the global arena. Third, to the extent that specialization may increase comparative advantage, an industrial cluster can concentrate firms and industries in a region dedicated to a particular product or competence. Finally, once a cluster successfully pools the resources and develops the core products and competences, the phenomena of networks of clusters is likely to emerge for participating parties to share complementarities across both national and geographical boundaries. Originality/value -Most studies on high-technology clusters are focused on intra-cluster interaction. This study broadens the scope of analysis to explore the inter-cluster network structure that enhances global competitiveness of both firms and clusters in an effective and efficient manner. This study offers initial empirical evidences and a number of important insights to assist managers and policy makers in enhancing global competitive advantage.

The role of joint actions in the performance of IT clusters in Mexico

“…Several studies show the importance of related and supporting industries to enhance the creation and productivity of clusters (Bresnahan et al, 2001;Niu et al, 2008). Our study also confirms this point: Jalisco IT cluster also has advantages with respect to related and supporting industries, that is, the number of IT global corporations that have presence in Jalisco is greater compared to the number of similar companies in Puebla.…”

“…Research on the development and performance of business clusters in emerging countries remains scarce (Altenburg and Meyer-Stamer, 1998;Schmitz and Nadvi, 1999;Perez-Aleman, 2005;Niu et al, 2008;Islam, 2010). In our study, we asked: how do formal and informal institutions enhance the development and performance of clusters in emerging countries?…”

“…The existence of networks, effective sanctions and trust are all critical factors for joint actions to develop within the clusters (Dwivedi et al, 2003;Niu et al, 2008;Niu et al, 2012;Zettinig and Vincze, 2012). For clusters to survive and produce the expected advantages, those joint actions must find an institutional support.…”

“…Several theoretical and empirical studies have been conducted in developed countries, such as the UK, Canada, Sweden and Spain (Waluszewski, 2004;McDonald et al, 2007;Arbuthnott et al, 2010;Chapain and Comunian, 2010;Camisón, and Forés, 2011;Lundberg, 2010;Camisón, and Forés, 2011). However, there is still a gap in the literature regarding the conditions favouring the sustainability and long-term success of business clusters in emerging countries (Perez-Aleman, 2005;Niu et al, 2008;Islam, 2010), which limits international comparisons of cluster efficiency. In this article, we show that emerging countries, and particularly Mexico, require specific joint actions and institutionalization processes in clusters.…”

Collaboration in cluster-based firms as a source of competitive advantage: evidence from a footwear cluster

“…Therefore, geographic proximity facilitates the relationship between firms, and it is a rare resource that is difficult to imitate (Rungtusanatham et al, 2003). This proximity facilitates the transfer of tacit knowledge among firms (Li & Geng, 2012); and stimulate the emergence of new businesses influencing in the growth and development of the network (Niu et al, 2008). This relationship can provide strategic options regarding resource complementarity, technological know-how, and capacities (Niu et al, 2008;Rungtusanatham et al, 2003).…”