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Open Access
Article
Publication date: 8 August 2022

Svitlana Ostapenko, Ana Paula Africano and Raquel Meneses

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…

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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).

Details

EuroMed Journal of Business, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1450-2194

Keywords

Article
Publication date: 18 May 2020

Anna Maria Lis and Malgorzata Rozkwitalska

The purpose of the paper is to portrait how members of cluster organizations (COs) perceive the role of COs in enabling them to accumulate technological capability (TC…

Abstract

Purpose

The purpose of the paper is to portrait how members of cluster organizations (COs) perceive the role of COs in enabling them to accumulate technological capability (TC) significant for their innovation.

Design/methodology/approach

The authors report the findings from their qualitative study based on an analysis of four COs. The organizational inertia and absorptive capacity theories are the theoretical underpinning of the research.

Findings

The study shows that the dynamics of TC of the cluster companies included in the study sample relates to their initial level of TC and cluster cooperation. The companies with relatively low initial TC increase it through COs if the clusters offer comparatively high benefits. On the other hand, those COs' members that present relatively high initial TC advance it, provided that the external knowledge and other benefits they can absorb in their clusters are suited to their technological trajectories.

Research limitations/implications

The research is preliminary in nature and portrays how firms with different levels of TC cooperate within COs and how this cooperation translates into TC improvements. The findings add to the state-of-the-art knowledge on the link between TC and absorptive capacity of companies involved in COs by depicting the role of COs in providing knowledge and other cluster benefits that help cluster companies to accumulate TC and improve their absorptive capacity. Nevertheless, the applied methodology does not allow the authors to generalize the findings.

Practical implications

The coordinators of COs should skillfully shape the levels of cluster cooperation, matching them to the desired level of the cluster companies. They should create smaller subgroups composed of companies with similar TC, which may translate into its higher dynamic.

Originality/value

The knowledge about the role of COs in providing cluster benefits that help cluster companies to accumulate TC and improve their absorptive capacity is still insufficient. The study shed new light on the key role of the levels of cluster cooperation and the types of commitment related to them (i.e. technological effort), which may be a matter of importance in the dynamics of TC accumulation.

Details

Baltic Journal of Management, vol. 15 no. 4
Type: Research Article
ISSN: 1746-5265

Keywords

Article
Publication date: 5 December 2016

Nadia Saad Noori and Christina Weber

The purpose of this paper is to introduce a novel approach to studying disaster management operations: the emergence of coordination-clusters in long-term rehabilitation projects…

599

Abstract

Purpose

The purpose of this paper is to introduce a novel approach to studying disaster management operations: the emergence of coordination-clusters in long-term rehabilitation projects and innovation dynamics in coordination-clusters.

Design/methodology/approach

The problem addressed is examining the coordination dynamics in long-term rehabilitation operations. A mixed methods research approach was adopted where a combination of qualitative and quantitative techniques was used for data collection and analysis to study the phenomenon of the coordination evolution in long-term rehabilitation projects.

Findings

The results indicate resilience in the behavior of involved actors from different organizations as they re-organize into coordination-clusters and collectively work to overcome the unfolding challenges of long-term rehabilitation projects in areas affected by major disaster.

Research limitations/implications

The results provide some answers to the question of how to map and analyze the phenomenon of coordination-clusters and their consequent coordination dynamics, and thereby steps to redesign the approach to execute long-term rehabilitation projects in places affected by major disasters.

Practical implications

The combination of Actor-network theory and critical incident technique with social network analysis and community detection provides an integrated network-based view of coordination dynamics in long-term recovery operations. Such perspective would broaden the empirical basis for the planning and management of complex disaster management operations.

Originality/value

The results of the research offer a new approach to study coordination dynamics in disaster management operations. The proposed method provides a tool to examine the evolution of processes involved with the recovery phase of a disaster management cycle.

Details

Journal of Humanitarian Logistics and Supply Chain Management, vol. 6 no. 3
Type: Research Article
ISSN: 2042-6747

Keywords

Article
Publication date: 26 August 2020

Ahmed Deif and Ahmed Mohib

This paper aims to explore a new model to manage small and medium enterprise (SME) clustering process that examines the geographical connectivity conditions within the existing…

Abstract

Purpose

This paper aims to explore a new model to manage small and medium enterprise (SME) clustering process that examines the geographical connectivity conditions within the existing theories on agglomeration. The presented work explores the dynamics governing the decisions related to both the duration and frequency of the different forms of these new clusters.

Design/methodology/approach

A clustering configurator tool is developed to assist managers for the best temporary cluster model. The configurator considers aspects related to the market, industry and classical clustering requirements as well as social capital (SC). Finally, the performance of various temporary clusters under different demand scenarios and operational conditions are studied using numerical simulation.

Findings

The results examined the performance of the new clusters under various internal and external defining indicators against potential economic growth, technology spillover and the new metric of SC. The results offered interesting observations suggesting various recommendations to promote these new models to SMEs as well as how to better manage them.

Research limitations/implications

The presented results are understood in the context of the suggested settings of relationships and scoring weights.

Practical implications

The new form of clusters will help SMEs overcome the feasibility challenge when considering re-locating to existing clusters while reaping many of these clusters benefits. Furthermore, different recommendations for management aimed at enhancing clustering decisions and the efficiency of SMEs in these new setups are presented.

Originality/value

This paper suggests a new clustering management approach that capitalizes on the temporal domain rather than classical space or the digital clusters domains. Also, a new management concept called dynamic matching is suggested. SC is considered among clustering objectives which was disregarded in similar studies.

Details

Journal of Modelling in Management, vol. 16 no. 2
Type: Research Article
ISSN: 1746-5664

Keywords

Article
Publication date: 20 July 2012

Marcus Conlé and Markus Taube

The purpose of this paper is to analyze the dynamics of China's health biotech clusters from an interregional perspective. By treating clustering as the result of firms'…

1129

Abstract

Purpose

The purpose of this paper is to analyze the dynamics of China's health biotech clusters from an interregional perspective. By treating clustering as the result of firms' localization choices, the paper examines whether and why different types of firms agglomerate in the various locations.

Design/methodology/approach

The paper employs a demographic approach that is inspired by the 2006 work of Romanelli and Feldman on cluster development in the USA. It categorizes China's clusters based on differences in the degree of policy support and the nature of the science base. Then, it draws a sample of 75 of China's most visible firms and analyses them in terms of entrepreneurial origin, their location and, if applicable, the location of their subsidiaries. By matching types of firms with types of clusters, the paper highlights some characteristics of China's regional development.

Findings

Studies on China's high‐tech agglomerations unanimously complain about a lack of “creative buzz” compared to the vibrant clusters of for example, the Bay Area in the USA. The analysis indicates that the lack of a creative culture is associated with the anatomy of cluster development. China's clusters grow to a significant extent by attracting enterprise subsidiaries to their sites. The authors argue that these particular cluster anatomies are founded on China's capital market. As the capital market is not prepared to provide pre‐revenue firms with sufficient funds, firms have to earn revenue quickly in order to ensure their viability. Therefore, they concentrate on building up manufacturing capacity and exploiting given technologies. The main point is that local governments as major providers of financial support are instrumental in this process. The establishment of manufacturing subsidiaries in various locations rests on the rationale of collecting funds. This leads to the conclusion that national capital markets either reinforce or inhibit clustering depending on how much it allows the mobility of financial capital. Local government funds do not travel far. This has an impact on the firms' localization decisions and their business strategies, which, in turn, affects the “culture” inside the clusters.

Research limitations/implications

This argument is based on a limited number of interviews conducted by the authors or other researchers. In order to corroborate the link between the capital market and local development trajectories, more evidence needs to be collected via interview surveys and other means to extract financial information.

Originality/value

Unlike other research on Chinese clusters, this paper offers an interregional perspective based on a demographic approach. The argument is original in linking regional cluster dynamics with the national institutional set‐up.

Details

Journal of Science and Technology Policy in China, vol. 3 no. 2
Type: Research Article
ISSN: 1758-552X

Keywords

Article
Publication date: 29 February 2024

Svitlana Magalhães de Sousa Ostapenko, Ana Paula Africano and Raquel Meneses

This study aims to further develop the CLC stage/path’s identification model that distinguishes between path’s emergence (emergence stage), path’s development (growth stage)…

Abstract

Purpose

This study aims to further develop the CLC stage/path’s identification model that distinguishes between path’s emergence (emergence stage), path’s development (growth stage), path’s sustainment (maturity stage), path’s decline (decline stage) and path’s transformation (renewal stage), and by applying it, define the current stage/path of the Demarcated Douro Region (DDR) cluster. The Port wine industry, which is the dominant industry of the DDR cluster, is at the maturity/decline stage – is the same for the cluster itself?

Design/methodology/approach

It is a case study with a longitudinal perspective based on the analysis of the dynamics of the parameters of cluster evolution using available secondary sources (cluster identity/brand; number of firms; number of employees; network; innovation; policies and regulations; and external markets – exports), especially addressing the past decade, that represent the stage of maturity/decline of the cluster’s dominant Port wine industry.

Findings

The conclusion is that since the 1990s the Demarcated Douro Region has gone through a “path transformation” where during the following 20 years new “anchors” for the cluster were gradually introduced, such as Doc Douro Wines, new forms of consumption of Port wine, tourism and olive oil. Since 2010 the cluster has entered a growth stage/(new) path’s development, where these “anchors” are in steady growth. The Douro brand is becoming more internationally recognized and established, the number of firms and employees is increasing, the network is restructuring with the creation of cluster-specific official institutions, innovation is especially reflected with increasing heterogeneity through diversification of the clusters into new activities and regulations and policies are supportive for expansion – all these parameters are indicating the rise of the new cycle for the cluster. Thus, the DDR cluster represents an attractive business environment and requires attention from regional policymakers to support the cluster’s development. Especially institutions have been highlighted as internal factors driving clusters growth, European integration as an external factor and firms’ strategies of diversification and internationalization as an appropriate de-locking mechanism for new path’s development.

Research limitations/implications

This research contributes to the CLC theory by further developing and applying a CLC stage/path identification model. It provides a better understanding of the dynamics of the DDR cluster that diverge from its dominant industry life cycle, which is relevant for regional policies and firms’ strategies. This study has its limitations. It provides an exploratory application of the theoretical framework proposed, and consequently, no general conclusions are possible yet. More empirical studies with different clusters in different stages are necessary to test the framework.

Practical implications

These findings are useful to policymakers when designing their policies for cluster development but also for clusters’ entities and actors when making their strategic decisions as it allows based on the verification of the established parameter of CLC to identify its current stage/path of development.

Originality/value

The paper presents a theoretically grounded model for CLC identification and for the first time to the best of the authors’ knowledge applies it to a cluster case – the DDR cluster. This case applies the proposed model and illustrates its usefulness. The model provides the tools for a better understanding of cluster dynamics.

Details

Competitiveness Review: An International Business Journal , vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1059-5422

Keywords

Book part
Publication date: 13 June 2023

Suhail Sultan and Meine Pieter van Dijk

This study aims to analyze the challenges facing five Palestinian clusters and to understand their dynamics and level of development. Using multiple sources of evidence, the…

Abstract

This study aims to analyze the challenges facing five Palestinian clusters and to understand their dynamics and level of development. Using multiple sources of evidence, the research questions are answered using semi-structured interviews and focus group discussions. Content analysis was used to analyze the data obtained. The five clusters in Palestine are located in a complex environment that imposes a mix of challenges that adversely affect their performance. The challenges facing Palestinian clusters are different in terms of their degree of complexity. The common challenges facing the Palestinian clusters are the fundamental lack of innovative stimulation policies or incentives in the Palestinian ecosystem, lack of trust, unfair competition, limited access to finance, lack of access to promising markets, and the limited collaboration between different parties. More focused policies are suggested to the Palestinian authorities.

Details

Industry Clusters and Innovation in the Arab World
Type: Book
ISBN: 978-1-80262-872-2

Keywords

Article
Publication date: 14 September 2015

Luciana Castro

Cooperative relationships between actors located in the same geographical area that are economically independent and culturally distinct are the heart of functioning innovation…

1005

Abstract

Purpose

Cooperative relationships between actors located in the same geographical area that are economically independent and culturally distinct are the heart of functioning innovation clusters. This can slow down the creation of common innovation projects, particularly in French innovation clusters where cooperation is influenced by the governmental financing devoted to this system. This research focuses on knowledge brokering activities implemented in this inter-organizational context, showing how they cross knowledge boundaries, structure cooperative dynamics and participate in common strategy-making. The mobilization of the strategy as practice theory allows for an in-depth analysis, shedding light on various practices, resources and practitioners related to the brokering activities taking place within an innovation cluster in Paris. Findings show a widespread development of brokering activities that emerges from cluster governance unit to its networks according to a reflexive relationship progressive structured over time.

Design/methodology/approach

This research is based on a longitudinal exploratory analysis of the Parisian cluster Advancity. To capture its organizational dynamics, two databases of the cluster (focused on innovation projects and integration of members), 24 power point files presented to negotiate strategy and 13 interviews with managers and members of the cluster were used. The whole data was triangulated and generated categories of data that can be compared with the concepts of the literature on innovation clusters (governance), brokering activities (knowledge access, learning, networking and implementation) and strategy-making (recursive process and adaptation of the strategy).

Findings

The analysis shows the effects of each type of brokering activities on strategy-making across knowledge and organizational boundaries. The practices of implementation activity initially absent from the cluster become, in its mature phase, one of the central activities. Moreover, all the brokering activities are initially handled by the managers of the cluster and progressively are extended to their members, then becoming a widespread activity within the internal networks. The maturation of these practices goes together with the maturation of its own cluster. The practice of experimentation particularly affects brokering activities and produces learning and networking effects within the cluster.

Practical implications

From a managerial point of view, considering the organization of the clusters as a constellation of communities of practice (Wenger, 1998) emphasizes that the knowledge brokerage activities can be extended and delayed within each community that makes up the organization. A top-down approach could therefore suffocate the network. It would be interesting to develop this research approach in future work and complete this research by reinforcing microscopic analysis enabled, for example, by tracking a small number of innovation projects during their lifecycle.

Social implications

The empirical foundation proposed in this research strengthens the scientific nature of the theory of the activity that is itself integrated in the perspective of the practice (Seidl et al., 2006). The multilevel approach and wealth of the mobilized and analysed empirical data allowed making more visible how a social activity builds itself, develops and creates aperture effects on the strategy driven by innovation at the intersection of different boundaries.

Originality/value

The results of this research provide a theoretical contribution in that they allow to revisit the classification of the activities of a knowledge broker (Hargadon 1998, 2005) in a new organizational context representative of the knowledge-based innovation (Amin and Cohendet, 2004). They are also contributing to the current emerging from the knowledge-based view of clusters (Bahlmann and Huysman, 2008; Arikan, 2009) by mobilizing the theory of the practice (Whittington, 2006; Jarzabkowski, 2005). This perspective helps to discern a particular form of strategy-making within the clusters.

Details

Journal of Knowledge Management, vol. 19 no. 5
Type: Research Article
ISSN: 1367-3270

Keywords

Book part
Publication date: 11 July 2023

Jorge Hernández-Barahona, Teresa Mateo, Águeda Gil-López and Elena San Román

This chapter studies the tourism cluster of Majorca and its connection with collective entrepreneurship. To this end, the authors review the history of four world leading Spanish…

Abstract

This chapter studies the tourism cluster of Majorca and its connection with collective entrepreneurship. To this end, the authors review the history of four world leading Spanish hotel companies, from their beginnings, in Majorca, in the 1950s, to their internationalization, in the 1980s and 1990s: Barceló, Meliá, Riu, and Iberostar. This allows us to identify common patterns of behaviour among them over time, which in turn illustrate the dynamics of the tourism cluster and the role played by its context. This qualitative and historical research allows us to make the following contributions: first, in line with other studies in the economic history of Spanish tourism, the four cases support the identification of Majorca as a tourism cluster. Second, the authors highlight several important characteristics of the island which reinforced and strengthened the cluster and boosted collective entrepreneurship, through an intense flow of information between the companies. Third, the authors illustrate coopetition as the key nature of the relationship between the clustered companies in a simultaneous process of competition and cooperation. Finally, the authors show how the strength of the tourism cluster, in Majorca, drove the companies to replicate the same dynamics and structures abroad.

Details

Collective Entrepreneurship in the Contemporary European Services Industries: A Long Term Approach
Type: Book
ISBN: 978-1-80117-950-8

Keywords

Article
Publication date: 19 September 2023

Ahmed S. Baig, Muhammad Imran Chaudhry and R. Jared DeLisle

In this paper, the authors study the phenomenon of price clustering in the Pakistan Stock Exchange (PSX), a market viewed as one of the best-performing stock markets in the world…

Abstract

Purpose

In this paper, the authors study the phenomenon of price clustering in the Pakistan Stock Exchange (PSX), a market viewed as one of the best-performing stock markets in the world during 2014–2017. The authors study the effect of stock-level variables on price clustering and analyze the determinants of the cross-sectional patterns of price clustering in the PSX, in particular the causal link between price clustering and political instability.

Design/methodology/approach

The authors' dataset comprises daily observations on 100 PSX stocks spanning from January 1, 2009 to June 30, 2019. The authors use multivariate regression and spectral analysis to shed light on the dynamics of stock price clustering in PSX.

Findings

The authors document abnormally high levels of stock price clustering, particularly on integer increments, in PSX. The nature of stock price clustering in PSX is consistent with the negotiation hypothesis of Harris (1991). The levels of stock price clustering on PSX are persistent and contain a cyclical component. Furthermore, the authors find that political uncertainty in Pakistan is a significant contributor to the high levels of price clustering on PSX. The authors' conclusions are robust to alternative econometric specifications and different measures of price clustering and political uncertainty.

Practical implications

The authors' findings are of interest to investors and policymakers. Since price clustering decreases market quality and degrades the information content of stock prices, the authors' study shows that price efficiency in PSX has not improved despite major reforms over the last decade. One practical implication of the authors' results is that investors should be cautious while rebalancing portfolios around political events such as general elections because stock price clustering increases in the PSX during these periods. As a result, stock prices are likely to deviate from their intrinsic values.

Originality/value

Research on price clustering is limited to developed markets, and emerging/frontier markets have been largely overlooked. The phenomenon of price clustering in the PSX has yet to be studied, despite the relevance of the PSX for emerging/frontier market investors.

Details

Managerial Finance, vol. 50 no. 3
Type: Research Article
ISSN: 0307-4358

Keywords

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