Network diversity, distance and  economic impact in a cluster: visualising linkages and assessing network  capital

By: E. Byrne, E. Doyle, J. Hobbs. Competitiveness Review, DOI: 10.1108/CR-10-2020-0135, May 2021.

Abstract: “Purpose – Effective policy to support business ecosystems should build on evidence-based analyses of firmlevel activities and outcomes. This paper aims to contribute to this requirement and makes three contributions. The first contribution is to extend the application of the network capital concept to a variety of eight distinct linkage categories (e.g. suppliers, customers and business support agencies) that support networking and clustering, in both activity and impact terms. The second contribution is outlining a novel method of network visualisation (V-LINC) based on the collection of primary and qualitative data. The third contribution is in applying the method to one cluster, information and communications technologies. Design/methodology/approach – Qualitative research on the nature and extent of organisational network linkages was undertaken. Structured interviews with a set of focal firms followed a tailored design approach. The concept of network capital was extended and applied to the cluster context by measuring network inputs and output (i.e. investments and impact). The approach was operationalised via a novel impact measurement approach, denoted as V-LINC, an acronym for visualising linkages in networks and clusters. Findings – The authors develop a business impact framework exploiting novel linkage visualisations and qualitative data from firms in a cluster in one city region across eight linkage types to capture distinct network capital elements. Organisational inputs into network development, measured as investment and involvement indicators and organisational outcomes from those networks, measured as importance and intensity indicators, are used to assess network performance. A comprehensive, systematic and robust analysis of network elements and performance is possible. Distance is found to interact differently across linkage types. Targeted recommendations may be made from the analysis of local or regional business ecosystems in light of measured business impacts of linkages. Research  limitations/implications – Due to the resource-intensive nature of data collection, the current study engages a limited sample of firms and interviewees. Applications of this approach in other contexts will permit further research into its usefulness in evaluating business impacts generated through networking activities. Originality/value – The method introduced here (V-LINC) offers a novel means to include both geography network theory into an understanding of knowledge relationships and networks within clusters. Accounting for both distance and linkage type reveals which categories of intra-regional and extra-regional linkages generate the greatest impact, given their frequency. The approach adds to available cluster visualisation and analysis approaches through identifying patterns of disaggregated knowledge flows and their impacts, with application to evaluation demands of policy.” [ABSTRACT FROM AUTHORS]

Cluster development and regional industrial restructuring:  agency and asset modification

By: J. O. Rypestol, A. Isaksen, E. L. Eriksen, T. Iakovleva, S. G. Sjotun, R. Njos. European Planning Studies, DOI: 10.1080/09654313.2021.1937951, June 2021.

Abstract: “The paper presents a novel theoretical framework to analyse the emergence and growth of industrial clusters. The framework focuses on the role of change agency for the modification of assets that initiate cluster development, which may also impact regional industrial restructuring. The authors distinguish between agency and assets at firm level and regional level, and argue that alignment of assets at the two levels may influence cluster development. The theoretical approach is illustrated and further advanced through a study of agency and asset modification in three recent cluster initiatives in western Norway. While the results of the empirical studies confirm the relevance of the theoretical approach, they also highlight the importance of specific regional and extra-regional contextual factors, as well as national policies and regulations, for clusters.” [ABSTRACT FROM AUTHORS]

Long waves in the geography of innovation: The rise and  decline of regional clusters of creativity over time

By: M. Doehne, K. Rost. Research Policy, DOI: 10.1016/j.respol.2021.104298, June 2021.

Abstract: “We explain the rise and decline of regional clusters of creativity over time. We argue that this dynamic is the result of the interplay of individually rational decision-making processes with collective externalities of unplanned social encounters; migration to particular places at particular times interacts with a preference to engage with similar others. This interplay leads to the rise and subsequent decline of opportunities for encounters between people who operate in different domains, a basic requirement for radical innovative change. The consequent decline of formerly innovative regions creates opportunities for new innovative regions to emerge. We test this theory using three independently curated datasets. The first includes the geocoded places and years of the births and deaths of 124,860 notable individuals who lived in Europe between 1000 and 1900 CE, used to measure opportunities for domain-diverse encounters in regions and regions’ time-varying attractiveness in global mobility networks. The second and third datasets consist of the geocoded locations and founding years of 3,165 Catholic monasteries and of 16,596 publishing houses. We use these organizational innovations as robust, independent indicators for a region’s capacity to foster incremental and radical change. Our paper aims to open a broader social network perspective on the rise and decline of regional clusters of creativity over time.” [ABSTRACT FROM AUTHORS]

The Role of Top Management Team in Oversea Location Choice:  Evidence from Chinese Firms’ Investment in European Industrial Clusters

By: Q. Zhou, Y. Lian, T. Hu. Emerging Markets Finance and Trade, DOI: 10.1080/1540496X.2021.1920392, May 2021.

Abstract: “This article investigates the role of firm’s top management team (TMT) in its location strategy in oversea investment decision. From the perspective of the upper-echelon theory and knowledge-based view, we study how knowledge-related characteristics of TMTs, such as education background, foreign experience and R&D experience affect the firm’s oversea location choice to invest in an industrial cluster. Using data of OFDI cases from Chinese firms to European sub-national regions from 2006 to 2016, we find that: (1) TMT’s education background has a positive effect on firm’s OFDI decision in industrial clusters; (2) TMT’s foreign experience has a positive effect on firm’s OFDI decision in industrial clusters; (3) TMT’s R&D background increases the firm’s likelihood to invest in industrial clusters. Our findings provide implications related to the effects of TMT characteristics on emerging market firms’ oversea investment activities.” [ABSTRACT FROM AUTHORS]

Market orientation in service clusters and its effect on the  marketing performance of SMEs

By: M. Royo-Vela, J. C. Amezquita Salazar, F. Puig Blanco. European Journal of Management and Business Economics, DOI: 10.1108/EJMBE-12-2019-0216, June 2021.

Abstract: “Purpose – This paper aims to address research gaps with regard to the relationship between market orientation and marketing performance when small- and medium-sized enterprises (SMEs) are located within a service cluster. The three main objectives of this research are to determine the effect that the cluster can have on both the market orientation of clustered companies and their marketing performance and to furthermore evaluate the effect of the market orientation of companies in the cluster on their marketing performance. Design/methodology/approach – This research used executive-level data that were obtained by carrying out a survey involving a unique dataset of 133 Colombian health-related businesses located in the city of Cali (Colombia) in 2014. A system of equations was modeled using SMART PLS. This analysis was complemented by a qualitative study that involved conducting in-depth interviews in six companies. Findings – The results showed that, among the SMEs, membership in an urban services cluster did not significantly influence marketing performance or the implementation of marketing orientation practices. No differences were observed in internal managerial practices implemented between companies that were colocated and isolated. However, a higher level of competitor orientation was associated with greater marketing performance. Given the verified absence of moderating and mediating effects, our work provides a reasonable basis for proposing future research and practical recommendations. Originality/value – While research has demonstrated the relationship between a company’s market orientation and marketing performance, this type of analysis has not been carried out on service SMEs in geographic concentrations or clusters.” [ABSTRACT FROM AUTHORS]

A  study on the industrial symbiosis in maritime cluster considering value chain  and life cycle – case of Dalian, China

By: Q. Liao, H. Zhen, D. Zhou. Maritime Policy & Management, DOI: 10.1080/03088839.2021.1937740, June 2021.

Abstract: “Maritime clusters are conducive to promoting the development of an urban economy and maritime industry. The development of high valueadded maritime industry is beneficial to upgrading a maritime cluster and improving its competitiveness. We discuss the symbiosis between ports and various value-added industries within a maritime cluster from a resource perspective, using the theory of life cycle and value chain, in order to answer the question: what role does the port play in the upgrading of maritime clusters? An empirical analysis of Dalian, China, was conducted using the Lotka-Volterra model. Our results show that resources were attracted by ports to promote the shipping industry and marine insurance in the non-decline period (NDP) of the cluster. During the declining period (DP) of the cluster, port development led to intensified resource competition and lock-in effects, destabilizing the relationships within maritime industries. Strengthening inter-industry cooperation, increasing market openness, and granting supportive policies to enterprises may rectify this decline. This study provides a reference for managers and researchers to aid in promoting the coordinated development and upgrade of maritime clusters.” [ABSTRACT FROM AUTHORS]

Innovation policy and performance of Polish enterprises: in  search for cluster cooperation additionality 

By: A. M. Kowalski, M. S. Lewandowska, M. Roszkiewicz. Innovation: The European Journal of Social Science Research, DOI: 10.1080/13511610.2021.1937068, June 2021.

Abstract: “The aim of the study is to identify the effect of European Union funds for innovation activities on the cooperation of enterprises as well as to assess the impact of cluster and out of cluster innovation cooperation on the innovation performance of Polish enterprises. Possible indirect policy outcome is connected with the concept of behavioural additionality used to measure the changes in the processes within firms resulting from public support. This article proposes the concept of cluster cooperation additionality, defined as the influence of policy instruments on enhanced innovation cooperation in and between clusters. Path analysis was used to verify the occurrence of these variables in Polish economy, with sample covering data from a Community Innovation Survey for 2008–2010, including 7783 medium and large manufacturing firms, from which n = 2795 enterprises declaring the introduction of product or/and process innovation were extracted to the final study.” [ABSTRACT FROM AUTHORS]

“To be or not to be” located in a  cluster? -A descriptive meta-analysis of the firm-specific cluster effect

By: N. Grashof, D. Fornahl. The Annals of Regional Science, DOI: 10.1007/s00168-021-01057-y, May 2021.

Abstract: “In the twenty-first century, clusters can be observed in most developed economies. However, the scientific results regarding the effect of clusters on from performance are highly contradictive. The inconsistencies in the empirical results make it difficult to infer general conclusions about the firm-specific cluster effect, or in other words, the effect from being located in a cluster on firm performance (e.g. derived through the externalities within clusters). Therefore, this paper aims to reconcile the contradictory empirical findings. It investigates whether the prevalent assumption that clusters are a beneficial location for firms is unconditionally true or whether doubts about the alleged positive effect of clusters on firm performance are justified. By conducting a descriptive meta-analysis of the empirical literature, based on four different performance variables from four separate publication databases, the study investigates the direction of the effect as well as possible moderating influences. We find evidence for a rather positive firm-specific cluster effect. However, we identify several variables from the micro-, meso- and macro-level that directly or interactively moderate the relationship between clusters and firm success. For example, the results demonstrate that a negative firm-specific cluster effect occurs more frequently in low-tech industries than in high-tech industries. “To be or not to be” located in a cluster is therefore not the question, but it rather depends on the specific conditions.” [ABSTRACT FROM AUTHORS]

How does human  capital foster product innovation? The contingent roles of industry cluster  features 

By: S. You, K. Z. Zhou, L. Jia. Journal of Business Research, DOI: 10.1016/j.jbusres.2021.03.046, June 2021.

Abstract: “Although it is well recognized that human capital is an important strategic asset for firms, the evidence regarding its role in developing new products is inconclusive. Prior research has overlooked the contingent role of industry clusters in the relationship between human capital and product innovation. This study suggests that organizational learning and resource availability from industry clusters shape the relationship between human capital and innovation. Using multilevel and multisource onsite survey data from 236 firms in 36 Chinese township clusters, we find that the positive effect of human capital is weaker when firms learn more from inside industry clusters and is stronger when firms learn more from outside clusters. Moreover, human capital has a stronger positive effect on innovation among firms that are located in clusters with more spinoffs. These findings provide novel insights into how human capital can be matched with the features of clusters to foster innovation.” [ABSTRACT FROM AUTHORS]

The effects of cluster collaboration and the utilization of  big data on business performance: A research based on the expansion of open  innovation and social capital 

By: J. Kim, Y. Kim, S. Jung, H. Choi, J. Kwon. African Journal of Science, Technology, Innovation and Development, DOI: 10.1080/20421338.2021.1925394, June 2021.

Abstract: “This study examines the influence of firm cluster collaboration and the utilization of big data on the expansion of open innovation. We also investigate the effect of open innovation on business performance and test the moderating effect of social capital. We surveyed 409 global firms (193 large enterprises and 216 medium enterprises) located in Asia, Europe, North America, and Africa over a one-month period. We limited the scope of the survey to employees working at the level of team leader (or executive) or above in the R&D department. This study used SmartPLS (Version 3.3.3) to perform the statistical analysis. Our results indicated that, first, corporate cluster collaboration had a positive effect on the expansion of open innovation. Second, firm use of big data had a positive effect on the expansion of open innovation. Third, firm expansion of open innovation had a positive effect on business performance (market and financial performance). Fourth, in the relationship between cluster collaboration and open innovation expansion, social capital had a negative moderating effect. This research proved that cluster collaboration and big data could accelerate open innovation, ultimately improving business performance. However, there are limitations regarding SEM analysis.” [ABSTRACT FROM AUTHORS]