The impact of cluster connectedness on firm innovation: R&D effort and outcomes in the textile industry

Abstract

Recent research into the clustering effect on firms has moved away from a simplistic view to a more complex approach. More realistic and complex causal relationships are now considered when analyzing these territorial networks. Specifically, this paper attempts to analyze how cluster connectedness moderates the relationship of a firm's innovation effort and the results obtained from this effort. We want to question the commonly accepted direct and positive impact of R&D effort, and moreover, we suggest the existence of a saturation effect and that the level of cluster's inter-connectedness in the cluster moderates this effect.We have developed our empirical study focusing on the Spanish textile industrial cluster. This is a complex manufacturing industry that uses relatively low technology manufacturing and R&D. Our findings suggest that the degree to which a firm is involved with, or connected to, other firms in the cluster can moderate the effect of the R&D effort on its innovation results.More generally, we aim to contribute to the discussion on the degree to which firms should be involved in the cluster network in order to operate efficiently and gain the maximum competitive advantages. Our findings have implications both in recent cluster and network literature as well for institutional policy.

The cluster is not flat. Uneven impacts of brokerage roles on the innovative performance of firms

“…Our work is in line with those studies reported in the cluster literature that assumed the network model for these industrial contexts (Branston et al, 2005; Boschma and Ter Wal, 2007; Parrilli and Sacchetti, 2008), more particularly in the Spanish context (Parra-Requena et al, 2010; Molina-Morales and Expósito-Langa, 2012). Within this context we focused on the notion of knowledge brokers, understanding them as actors exchanging different types of knowledge between otherwise unconnected actors in the same location (Graf, 2011; Graf and Kruger, 2011).…”

“…This joint effect increases the firm's knowledge and, consequently, its value creation and innovation. Some examples in this regard are Expósito-Langa et al (2015), Molina-Morales and Expósito-Langa (2012) or Escribano et al (2009). In spite of the above argumentation, some recent body of research remarks that it is also possible to find a partial substitution effect between internal R&D efforts and external information sources such as brokerage activities.…”

Moving beyond the mechanistic structures: The role of inclusive leadership in developing change‐oriented organizational citizenship behaviour

“…Employees in these SMEs have change‐oriented job assignments, as the fashion industry rigorously innovates and brings about changes with intermittent improvements. Products related to fashion and design do not retain their value over a long period of time (Enkel & Gassmann, 2010; Molina‐Morales & Expósito‐Langa, 2012; Singleton, 2013; Zhang, Dong, Ma, Tang, & Cai, 2010). Continuous change is the outcomes of hyper‐competitive markets, technological growth, and globalization (Xerri et al, 2009).…”

Loving Outside the Neighborhood: The Conflicting Effects of External Linkages on Incremental Innovation in Clusters

“…Consequently, the absorptive capacity can be at some point partially substituted or complemented by external activities, depending on the degree of overlapping. In our opinion, these interactions between internal and external levels of capacities only happen under the cluster conditions, and thus rarely can be applied to different contexts (Molina‐Morales and Expósito‐Langa ).…”