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Article
Publication date: 20 November 2017

Liang Wang

The purpose of this paper is to theorize how the industry life cycle unfolds differently across places and how economic agglomeration varies over time.

Abstract

Purpose

The purpose of this paper is to theorize how the industry life cycle unfolds differently across places and how economic agglomeration varies over time.

Design/methodology/approach

The paper relies on literature review and conceptual analysis.

Findings

It generates a dynamic geographic concentration model (i.e. an industry’s degree of geographic concentration drops in the growth stage, rises in the mature stage, and drops again in the new growth stage) and a localized industry life-cycle model (i.e. temporal dynamics differ between the center and the periphery).

Originality/value

It makes contribution by theorizing that the extent to which an industry is geographically concentrated changes over time, and by demonstrating how an industry’s center and periphery may experience different temporal dynamics.

Details

Journal of Strategy and Management, vol. 10 no. 4
Type: Research Article
ISSN: 1755-425X

Keywords

Article
Publication date: 18 January 2016

Jesús M. Valdaliso, Aitziber Elola and Susana Franco

This paper aims to examine whether in old industrial regions, the trajectory of clusters follows that of their corresponding industry or deviates from it and which are the factors…

2117

Abstract

Purpose

This paper aims to examine whether in old industrial regions, the trajectory of clusters follows that of their corresponding industry or deviates from it and which are the factors that account for cluster evolution. This paper deals with the issue of how established clusters either renew or transform themselves in such regions and how they adapt to changes in their corresponding international industries.

Design/methodology/approach

This research paper draws from in-depth case studies on six industrial clusters, takes a longitudinal perspective and uses a multi-level and qualitative analysis. Based on existing literature, the paper suggests and exploratory analytical framework with four alternative scenarios for cluster evolution and three broad factors: cluster knowledge base, social capital at cluster and region-level and public policies.

Findings

Clusters do not always follow the life cycle of its dominant industry. The paper clearly shows a diversity of cluster evolution across clusters and even within clusters (at subcluster level). This study suggests that cluster knowledge diversity and heterogeneity allow to broaden the scope of evolutionary trajectories available; the same goes for social capital at cluster and region levels.

Research limitations/implications

The main limitation of this paper lies in its qualitative approach that makes its conclusions more suggestive than conclusive. In any case, further research on other Basque clusters may corroborate or question its findings.

Originality/value

The paper offers an empirical and longitudinal study on cluster evolution, very much needed to the ongoing theoretical discussion on this issue. So far, there are very few empirical studies on cluster evolution with this perspective. At the same time, it presents a theoretical framework to analyse diversity of cluster evolution in old industrial regions that builds on Menzel and Fornah’s (2010) model.

Details

Competitiveness Review, vol. 26 no. 1
Type: Research Article
ISSN: 1059-5422

Keywords

Article
Publication date: 20 May 2019

Gabriela Scur and Renato Garcia

This paper aims to analyze the impact of the capabilities and strategies of the actors (micro-dynamics), learning process and networks (meso-dynamics) and institutions…

Abstract

Purpose

This paper aims to analyze the impact of the capabilities and strategies of the actors (micro-dynamics), learning process and networks (meso-dynamics) and institutions (macro-dynamics) in the evolution of the Brazilian ceramic clusters. Based on these experiences, managerial and policy implications are suggested.

Design/methodology/approach

Main data were gathered through 22 in-depth face-to-face interviews with managers and industry experts. The data were complemented by documentary analysis, including brand documents, descriptions of internal processes and Brazilian and international ceramics magazines and journals. In addition, the authors also use information from the previous experience of the authors who have been studying the sector for more than 15 years.

Findings

The paper provides empirical insights about the main characteristics of the evolution of two main Brazilian ceramic tiles clusters, as well as how there are different patterns of evolution among them. The results of this paper show that Brazilian ceramic tile clusters do not necessarily follow the life cycle model of their dominant industry, by proving evidence that different clusters in the same industry can follow different evolutionary paths.

Research limitations/implications

This paper shed light on a multi-level approach (micro, meso and macro) of dynamics of the clusters and how it impacts the cluster’s life cycle. The micro-dynamics dimension was analyzed by the capabilities and strategies of local ceramic tile manufacturers. The meso-dynamics are being considered the localized learning processes, especially from those that arise from interactions, collaboration and networks carried by local and foreign suppliers. The macro-dynamics were considered by the role of local demand, factors conditions, institutions, historical legacy in the clusters’ emergence along with path dependence mechanisms.

Practical implications

The paper includes implications for both clusters to promote innovation, particularly to keep and create market and technological leadership through the establishment of partnership between firms and clients, regulators and research centers and universities are crucial for innovation.

Originality/value

This paper fulfils an identified lack of attention regarding the under-appreciation of the context-specific issues such as the capabilities of the actors, networks and institutions that may influence the long-term development of clusters.

Details

Competitiveness Review: An International Business Journal , vol. 29 no. 3
Type: Research Article
ISSN: 1059-5422

Keywords

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…

784

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: 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

Article
Publication date: 1 October 2002

Adrian T.H. Kuah

This paper seeks to review the state of knowledge to this much talked‐about paradigm, first made famous by Porter (1990). Clusters are a striking and common feature in today’s…

2430

Abstract

This paper seeks to review the state of knowledge to this much talked‐about paradigm, first made famous by Porter (1990). Clusters are a striking and common feature in today’s economy. Nonetheless, this phenomenon is not exactly new and has been the object of attention from a wide variety of social scientists for much of this century. In the last ten years, this phenomenon has attracted renewed interest from academics, practitioners, and the British Government – who have become aware of its central importance in competitive strategy. An understanding of clusters adds an important dimension to the more commonly debated role of personal contact networks in the success of entrepreneurial small business.

Details

Journal of Research in Marketing and Entrepreneurship, vol. 4 no. 3
Type: Research Article
ISSN: 1471-5201

Keywords

Open Access
Article
Publication date: 4 June 2021

Diego Alex Gazaro dos Santos, Aurora Zen and Bruno Anicet Bittencourt

Innovation ecosystems can emerge and grow organically, but the process can also be managed through conscious intervention. Therefore, this study observes different motivations and…

2896

Abstract

Purpose

Innovation ecosystems can emerge and grow organically, but the process can also be managed through conscious intervention. Therefore, this study observes different motivations and expectations for each group of actors. The lack of alignment between actors could have a negative influence on the development of innovation ecosystems. This study aims to analyze the coordination strategies of the actors throughout the life cycle of innovation ecosystems.

Design/methodology/approach

This study develops and proposes a model for coordinating innovation ecosystems based on the theoretical backgrounds of the ecosystem life cycle and ecosystem coordination.

Findings

This study argues that each stage of an innovation ecosystem’s life cycle – inception, launching, growth and maturity – demands different coordination strategies. Initially, networks are simpler and thus the coordination issues are less difficult. However, as the ecosystem evolves and the complexity of the networks increases, a more sophisticated strategy, such as orchestration or choreography, is needed.

Research limitations/implications

This is a theoretical study that recommends further research to test this model.

Practical implications

The understanding of coordination and stages of the life cycle of an innovation ecosystem can guide actors in the design of strategies for developing of ecosystems.

Social implications

The proposed framework could support strategies to engage civil society in actions to develop innovation ecosystems.

Originality/value

This study presents a framework to understand the coordination strategies better, considering the stages of an innovation ecosystem’s life cycle.

Details

Innovation & Management Review, vol. 19 no. 1
Type: Research Article
ISSN: 2515-8961

Keywords

Book part
Publication date: 13 June 2023

Mona Ali Ali

The main problem addressed by this research is the current debate between the negative and positive effects of industrial clusters. This debate is a result of gaps between…

Abstract

The main problem addressed by this research is the current debate between the negative and positive effects of industrial clusters. This debate is a result of gaps between theoretical implications and empirical evidence in both the classical agglomeration theory and the agglomeration lifecycle theory. The purpose of this study is to propose a framework for developing an index measuring both organizational cluster involvement and organizational supply chain including the three pillars (economic, social, and environmental). Furthermore, the index acts as a quantitative predictor of the stages of the life cycle of industrial clusters. Adopting a case study methodology, the applicability of the index development framework is demonstrated. First, cross-sectional exploratory interviews are performed to locate items measuring the three pillars of organizational sustainability within Egyptian communication industry. Second, an explanatory, cross-sectional approach is applied gathering data from eight professionals related to involvement and supply chain sustainability of their organizations. Analytical hierarchical process is used for weighting and aggregating individual item metrics into two indicators (Saaty, 1980). Measuring, managing, and controlling capabilities of organization's supply chains outweighs the need to manage risks. The proposed framework aids firms within a cluster in making timely decisions about what needs addressing to improve supply chain sustainability performance. Hence, all environmental, social, and economic capabilities can be effectively monitored and controlled.

Details

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

Keywords

Article
Publication date: 31 August 2012

Holger Schiele, Gert‐Jan Hospers and Debbie van der Zee

This paper analyses firms, which survived in a collapsed regional cluster. The target is to analyze whether the principles for enduring success identified researching success

Abstract

Purpose

This paper analyses firms, which survived in a collapsed regional cluster. The target is to analyze whether the principles for enduring success identified researching success factors of very old firms also apply in such an environment.

Design/methodology/approach

The authors conduct a series of contrasting case studies, embedded in cluster theory and enduring success research.

Findings

Firms survived with very different strategies and levels of outsourcing. However, surviving firms were congruently very conservative in their finances and in innovation behavior. Risk aversion and an early detachment from the declining cluster were found as success patterns for survival.

Research limitations/implications

Owing to the disappearance of most other firms in the cluster, it was not possible to evaluate their unsuccessful strategies, which means that they cannot be excluded for sure if failed firms applied similar tactics than the surviving firms. This study is focused on one cluster in one industry. Future research could feel encouraged to test the enduring success principles on large scale, multi‐industry surveys.

Practical implications

The conclusions from this research stress the merits of a conservative approach to corporate management, which contrasts with a more risk‐taking attitude managers may feel tempted to take in order to satisfy some (financial) stakeholders.

Social implications

The “conservatism hypothesis” discussed in this research complements the discussion on corporate ethics.

Originality/value

This paper adds to existing enduring success literature by applying it to the extremely challenging environment of a declining industry. It contributes to cluster theory, in particular to cluster life cycle research.

Details

Journal of Business Strategy, vol. 33 no. 5
Type: Research Article
ISSN: 0275-6668

Keywords

Article
Publication date: 11 July 2013

Blanca Martins and Francesc Solé

The purpose of this paper is to contribute to the understanding of small to medium‐sized enterprise (SME) clustering processes initiated from the bottom up. In particular, this

1401

Abstract

Purpose

The purpose of this paper is to contribute to the understanding of small to medium‐sized enterprise (SME) clustering processes initiated from the bottom up. In particular, this paper seeks to tackle the major setbacks encountered by a group of Spanish SMEs with long tradition in the chemical sector on their way to setting up a cluster.

Design/methodology/approach

The authors propose a collaborative action research approach. The fact that the study was carried out within the framework of the EU‐FP7 CADIC project made this approach particularly suitable. The intervention strategies along the cluster development cycle are especially focused.

Findings

Collective and distributed leadership, collaborative culture, communication, dynamic relational capabilities, and a shared vision or purpose are all necessary and critical, though not sufficient elements, for the success of SME bottom‐up clusters. The timeframe of the strategic interventions and the roles of the partners are equally fundamental.

Practical implications

The practical implications are to enhance SMEs' clusters management capacity and collaboration readiness; to promote more business‐grounded and effective cluster policies; and to contribute to enlighten the discussions about the opportunity/appropriateness of cluster evaluation frameworks/policies addressed to enact collaboration, when the focus is the SME.

Originality/value

This study suggests that misalignments in the triad roles‐purpose‐culture among the cluster partners could bring about dysfunctions and lead the cluster to a prolonged “projectism” and early degeneration. Particularly, it highlights the fundamental role of the “roles” displayed in the cluster in achieving success. These roles are dynamic and emergent mechanisms of adaptation of the cluster to the internal and external environmental changes.

Details

Journal of Knowledge Management, vol. 17 no. 4
Type: Research Article
ISSN: 1367-3270

Keywords

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