This monthly selection of articles is been carried out by Philippe Gugler and Basile de Raemy, the Center for Competitiveness, University of Fribourg. The entire selection, carried out since 2013, can be consulted on the academic articles page of our web.

Strategic collaboration inagro-industrial clusters: territorial dynamics within the dairy industry in Uruguay

By: P. Galaso, A. Rodriguez Miranda. CompetitivenessReview, DOI: 10.1108/CR-10-2021-0146, August 2022.

Abstract: “Purpose - Inquiring about the patterns of interaction within clusters can provide a valuable insight into the cooperation and competition strategies followed by firms. However, such internal patterns are difficult to identify using conventional methods. This study aims to apply a social network analysis approach to identify and analyze different sub-groups of firms within a dairy cluster. These sub-groups seem to respond to different forms of productive organization, with different levels of territorial anchorage. Design/methodology/approach - The authors study the dairy cluster in the south-west of Uruguay, where one of the country’s main industries is located. The authors use data from semi-structured interviews applied to managing directors of 40 dairy industrial firms. The authors analyze the collaboration network among firms and industry support organizations. Using a community detection algorithm, the authors identify strategic groups of firms and organizations within the network. The authors analyze information from the interviews to delve deeper into the strategies pursued by actors in each of these sub-groups. Findings - The four groups identified by the algorithm respond to particular logics associated not only with collaborative behavior, but also with territorial distribution and competitive strategies pursued by firms. In particular, these communities show a positive association between the centrality of their nodes in the network, the size of their firms, their export orientation and their innovative capacity. These associations indicate the co-existence, within the cluster, of different local productive systems and other forms of productive organization. Originality/value  - The paper illustrates how different strategies of firms within a cluster can be understood using social network analysis. This approach is particularly interesting in agri-food clusters, where their wider dispersion in the territory often implies their firms following different collaborative and competitive strategies, and different levels of territorial anchorage.” [ABSTRACT FROM AUTHORS]

The role of network relations and  previous knowledge in the ACAP of low-tech intensity clusters

By: F. A. Ribeiro Serra, J. Araujo Carneiro-da-Cunha, L. Vils, C. R. Rossetto. Competitiveness Review, DOI: 10.1108/CR-12-2021-0168, August 2022.

Abstract: “Purpose - The mainstream research on knowledge transfer and absorptive capacity (ACAP) in clusters was conducted in high-technology industries in developing countries. However, low technology intensity clusters present a different scenario that might affect this external knowledge transfer and ACAP. This study aims to understand the role of network relations and previous knowledge in the ACAP of a low-technology intensity cluster. Design/methodology/approach - The authors analyzed companies from a low-technology industry in an emerging country. The authors collected 109 questionnaires from companies in the Brazilian footwear manufacturing cluster. Factor analysis led the independent variables to be regrouped into eight variables. This data set was analyzed using regression techniques. Findings - In a low-tech cluster prevalently populated by small companies, companies have access to novelties and knowledge that influence their products and production through the frequency and stability of the network’s relational ties with the supplier. The quality of relationships with clients may provide access to products, materials, technologies and learning. Small companies consider intra-cluster competition because of limitations in accessing external competition. Although low-tech companies need to exchange knowledge and technology with suppliers and clients outside the cluster, most companies are limited in size because of liabilities. In a low-tech cluster dominated by small companies, access to better purchasing costs, new technologies or innovations is an expected weakness. Intra- and extra-cluster ties positively influenced ACAP, as did organizational capabilities, whereas employees’ skills did not. Originality/value - Individual skills are not related to ACAP in low-technology intensity clusters. The level of ACAP in small and medium enterprises (SMEs) can be explained by the scope of individuals’ knowledge and other individual capabilities.” [ABSTRACT FROM AUTHORS]

Are Chinese MNEs more strongly  attracted to global cities and knowledge intensive city clusters than developed  market MNEs when undertaking greenfield strategic asset seeking related FDI?

By: L. Wu, D. Sutherland, X. Peng, J. Anderson. Competitiveness Review, DOI: 10.1108/CR-02-2022-0026, July 2022.

Abstract: “Purpose - Cities are host to many of the world’s knowledge intensive research and innovation clusters. As such, they are likely to be attractive locations for emerging market multinational enterprises (MNEs) seeking to engage in knowledge seeking “springboard” type firm-level catch-up strategies. The purpose of this study is to therefore explore whether city-based research-intensive clusters containing deep pools of location bounded (i.e. “sticky”) knowledge are a stronger driver for greenfield research and development (R&D)-related FDI projects for Chinese MNEs than they are for developed market MNEs. Design/methodology/approach  - The authors use logistic modelling on 97,163 worldwide greenfield FDI projects to explore the relative likelihoods of Chinese MNEs engaging in R&D-related greenfield (i.e. “strategic asset seeking”) FDI projects as well as how city type (global or research-intensive cluster city) moderates this relationship for Chinese MNEs. Findings  - The authors find that Chinese MNEs are more likely to engage in overseas R&D FDI projects (compared with other types of project) than DMNEs and that research-intensive city clusters hold a stronger attraction for Chinese MNEs than developed market MNEs. Research  limitations/implications - The authors discuss how the research contributes to the debate on emerging market MNE catch-up theory, as well as that on sub-national city location choice, by highlighting the growing importance of sub-national geography to understanding strategic asset seeking related greenfield FDI. Practical implications -  Sub-national city location choice is an important driver of strategic asset seeking FDI for Chinese MNEs, one that both national and local city level policymakers should pay attention to. Social  implications - Chinese FDI via aggressive mergers and acquisitions to acquire key technologies has been restricted in recent years. Policymakers must consider whether they may also wish to restrict Chinese greenfield FDI in R&D-related projects, which now exhibit a pronounced upward trend. Originality/value - The authors highlight the growing importance of sub-national geography to understanding strategic asset seeking related greenfield FDI in Chinese MNEs (and how it plays, more generally, a central role in their strategies).” [ABSTRACT FROM AUTHORS]

Cluster dynamics and firms’ strategies – an integrative  framework 

By S. Ostapenko, A. P. Africano, R. Meneses. EuroMed Journal of Business, DOI: 10.1108/EMJB-01-2022-0014, August 2022.

Abstract: “Purpose - This study aims to systematise the links between firms’ strategies (corporate and business) and the cluster dynamics (through the cluster life cycle [CLC] perspective) and propose an integrative framework bridging firms’ strategic behaviour and cluster dynamics (CLC). Design/methodology/approach - The methodology used is an integrative literature review, which provides a distinctive form of research. Findings -  The study identifies several links between firms’ strategies (corporate and business) and the cluster dynamics (CLC), namely: (1) firms’ strategies as a triggering factor of cluster evolution; (2) firms’ strategies and path's decline; (3) firms’ strategies and cluster’s renewal; (4) resilience strategies and the cluster life cycle; and (5) cluster’s features and firms’ strategies. Research limitations/implications - This study contributes to developing strategic management theory and cluster theory by bridging firms' strategies and cluster dynamics (CLC). It proposes a new conceptualisation of the impact of cluster dynamics on firms' strategic choices – firstly, it proposes a specific approach to identify the CLC; and secondly, it develops an integrative framework model that relates firms' strategies and each stage of the CLC. These are theoretical tools relevant for further advancements in this area of research, as they can be applied in studies of different clusters for validation, something that was not done. Practical implications - The integrative framework is expected to be helpful to company managers, allowing them to design better strategies that account for dynamic cluster environments. Originality/value  - This study aims to fill this gap in the literature by systematising the links between firms' strategies (corporate and business) and the cluster dynamics (CLC).” [ABSTRACT FROM AUTHORS]

Structural Evolution of Regional  Firm Network System under the Influence of Industrial transfer: A Case Study of  the Refrigeration Industrial Cluster of Minquan County

By: S. Gao, Z. Ran, Y. Li, S. Pan. Complexity, DOI: 10.1155/2022/9050029, August 2022.

Abstract: “The transplanted firm is an important force to promote the network evolution and cluster transformation and upgrading of the undertaking firm. From the micro-analytic perspective of firm network, this paper puts forward a theoretical framework with “relationship-network-evolution” as the main line. Taking the refrigeration industry cluster in Minquan County of China as a case study and keeping the firm networks of economic relation, technical cooperation, and social communication firm network in 2009, 2013, and 2017 as the research objects, this paper analyzes the structure and evolution characteristics of regional firm network system, proposes the degree and effect of the local embeddedness of transplanted firms, and discusses their differences between international and interregional transplanted firms. The results revealed that: (1) the local embeddedness of transplanted firms significantly promotes the development of refrigeration industry network. (2) The network power of large-scale transplanted firms in the cluster is increasing day by day, and the network presents a multi-core trend. (3) The local embeddedness of some transplanted firms is not high, and the overall connectivity of the network is not strong. (4) Network intermediary nodes have strong heterogeneity, and the intermediary role of some large transplanted firms in the network needs to be improved. (5) The three network systems have similar structural characteristics, and social capital plays an important role in the local embeddedness of transplanted firms and the development of regional firm network. (6) Compared with international transplanted firms, interregional transplanted firms are more adaptable in terms of local embeddedness. The research results provide a reference for the construction of similar industrial clusters in China and other developing countries.” [ABSTRACT FROM AUTHORS]

Leadership and governance challenges in delivering  place-based transformation through Smart Specialisation

By: I. F. Kristensen, R. Pugh, M. Grillitsch. Regional Studies, DOI: 10.1080/00343404.2022.2090536, July 2022.

Abstract: “This paper considers the unfolding of Smart Specialisation Strategy (RIS3) in one of Europe’s innovation-leading metropolitan regions: Stockholm, Sweden. Theoretically, it contributes to debates around change agency and reflects more broadly, which implications arise for metropolitan innovation-leader regions and which are of more generic nature. It argues that actor endowments, dense networks, experience with participatory governance processes and good governance are not sufficient for a successful implementation of RIS3. It finds that transformative regional innovation policy is contingent upon the adequate empowerment of change agents rather than on general regional preconditions.” [ABSTRACT FROM AUTHORS]

Universities as strategic agents in regional path  development? A European comparison

By: L. Nieth, V. Radinger-Peer. European Planning Studies, DOI: 10.1080/09654313.2022.2104604, July 2022.

Abstract: “This paper contributes to the discussion on the role of universities in regional path development, emphasizing the different agency types adapted. Accordingly, literature on ‘new path development’ is combined with the three agency types of innovative entrepreneurship, institutional entrepreneurship and place-based leadership. This paper applies a long-term qualitative empirical approach with three case studies – Aalborg (Denmark), Kaiserslautern (Germany) and Twente (Netherlands). Results reveal that different types of agency are closely interwoven and complement each other in their effects on regional (industrial) path development. Additionally, the agency types are strongly influenced by (a) highly motivated individuals/frontrunners, (b) support and openness from the university leadership and (c) regional structures that facilitate university-region collaboration and joint governance.” [ABSTRACT FROM AUTHORS]

Asset modification for regional  industrial restructuring in times of economic crisis

By: J. O. Rypestol, N. Kyllingstad, R. Martin. European Planning Studies, DOI: 10.1080/09654313.2022.2105643, July 2022.

Abstract: “Contributing to the literature on regional industrial restructuring, this article presents findings on how firms modify assets to overcome an economic crisis. Empirically, this article draws on interviews with 33 firms in the oil and gas (O&G) industry in Southern Norway, which experienced a major crisis caused by a fall in global oil prices in 2014–2015. We investigate how the crisis affected the asset base of the local firms, how they modified their firm-level assets to restructure, and how and to what extent they drew on system-level assets to overcome the crisis. We find that the firms experienced a substantial asset drain. Asset reuse was the prevailing mode of asset modification in the early phase of the crisis, while asset bridging through collaboration with other organizations became more important in the later phase of the crisis. With exception of the local university, system-level assets were of little relevance to the firms. The study shows that during crises firms benefit from well-aligned firm- and systemlevel assets and from a regional industrial milieu that supports inter-organizational collaboration.” [ABSTRACT FROM AUTHORS]