IDEAS home Printed from https://ideas.repec.org/a/eee/iburev/v28y2019i514.html
   My bibliography  Save this article

Economic geography and emerging market clusters: A co-evolutionary study of local and non-local networks in Bangalore

Author

Listed:
  • Täube, Florian A.
  • Karna, Amit
  • Sonderegger, Petra

Abstract

The presence of network ties within location plays a significant role in organization and evolution of clusters. This has proven to be particularly true for clusters specializing in knowledge intensive industries, where the organization of resources – people and technology – has been a primary driver for firm and regional performance. With the help of a longitudinal case study of the Bangalore IT cluster in India, we investigate the effect of local and non-local network ties on its evolution. We argue that networks – both local and non-local – play an important role in the development of cluster. We propose a non-linear relationship between cluster evolution phases and the type of network ties most prominent. Our study also outlines the role that embedding, expansion, and extension of ties plays in transitioning cluster from one phase to the other. The consideration of non-local ties is rather nascent in the cluster literature and promises to enhance the understanding of how clusters develop at both levels – policy as well as firm.

Suggested Citation

  • Täube, Florian A. & Karna, Amit & Sonderegger, Petra, 2019. "Economic geography and emerging market clusters: A co-evolutionary study of local and non-local networks in Bangalore," International Business Review, Elsevier, vol. 28(5), pages 1-1.
    • Handle: RePEc:eee:iburev:v:28:y:2019:i:5:14
    DOI: 10.1016/j.ibusrev.2018.03.011
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0969593117307722
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ibusrev.2018.03.011?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Manning, Stephan, 2013. "New Silicon Valleys or a new species? Commoditization of knowledge work and the rise of knowledge services clusters," Research Policy, Elsevier, vol. 42(2), pages 379-390.
    2. Mark Lorenzen & Ram Mudambi, 2013. "Clusters, Connectivity and Catch-up: Bollywood and Bangalore in the Global Economy," Journal of Economic Geography, Oxford University Press, vol. 13(3), pages 501-534, May.
    3. Gautam Ahuja & Giuseppe Soda & Akbar Zaheer, 2012. "The Genesis and Dynamics of Organizational Networks," Organization Science, INFORMS, vol. 23(2), pages 434-448, April.
    4. Suma S. Athreye, 2005. "The Indian software industry and its evolving service capability," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 14(3), pages 393-418, June.
    5. Patibandla, Murali & Petersen, Bent, 2002. "Role of Transnational Corporations in the Evolution of a High-Tech Industry: The Case of India's Software Industry," World Development, Elsevier, vol. 30(9), pages 1561-1577, September.
    6. Bill McEvily & Akbar Zaheer, 1999. "Bridging ties: a source of firm heterogeneity in competitive capabilities," Strategic Management Journal, Wiley Blackwell, vol. 20(12), pages 1133-1156, December.
    7. Elaine Romanelli & Olga M. Khessina, 2005. "Regional Industrial Identity: Cluster Configurations and Economic Development," Organization Science, INFORMS, vol. 16(4), pages 344-358, August.
    8. Paul Ellis, 2000. "Social Ties and Foreign Market Entry," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 31(3), pages 443-469, September.
    9. Giuliani, Elisa & Bell, Martin, 2005. "The micro-determinants of meso-level learning and innovation: evidence from a Chilean wine cluster," Research Policy, Elsevier, vol. 34(1), pages 47-68, February.
    10. Ramana Nanda & Tarun Khanna, 2010. "Diasporas and Domestic Entrepreneurs: Evidence from the Indian Software Industry," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 19(4), pages 991-1012, December.
    11. Elisa Giuliani, 2007. "The selective nature of knowledge networks in clusters: evidence from the wine industry," Journal of Economic Geography, Oxford University Press, vol. 7(2), pages 139-168, March.
    12. Anne L.J. Ter Wal, 2013. "Cluster Emergence and Network Evolution: A Longitudinal Analysis of the Inventor Network in Sophia-Antipolis," Regional Studies, Taylor & Francis Journals, vol. 47(5), pages 651-668, May.
    13. Alessandra Perri & Vittoria G. Scalera & Ram Mudambi, 2017. "What are the most promising conduits for foreign knowledge inflows? innovation networks in the Chinese pharmaceutical industry," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 26(2), pages 333-355.
    14. Breschi, Stefano & Lissoni, Francesco, 2001. "Knowledge Spillovers and Local Innovation Systems: A Critical Survey," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 10(4), pages 975-1005, December.
    15. Max-Peter Menzel & Dirk Fornahl, 2010. "Cluster life cycles--dimensions and rationales of cluster evolution," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 19(1), pages 205-238, February.
    16. Lee, Ji-Hwan & Gaur, Ajai S., 2013. "Managing multi-business firms: A comparison between Korean chaebols and diversified U.S. firms," Journal of World Business, Elsevier, vol. 48(4), pages 443-454.
    17. Iammarino, Simona & McCann, Philip, 2006. "The structure and evolution of industrial clusters: Transactions, technology and knowledge spillovers," Research Policy, Elsevier, vol. 35(7), pages 1018-1036, September.
    18. William R. Kerr, 2008. "Ethnic Scientific Communities and International Technology Diffusion," The Review of Economics and Statistics, MIT Press, vol. 90(3), pages 518-537, August.
    19. Peter Maskell & Anders Malmberg, 2007. "Myopia, knowledge development and cluster evolution," Journal of Economic Geography, Oxford University Press, vol. 7(5), pages 603-618, September.
    20. Ashish Arora & Surendra K. Bagde, 2010. "Human capital and the Indian software industry," NBER Working Papers 16167, National Bureau of Economic Research, Inc.
    21. Anne Ter Wal & Ron Boschma, 2009. "Applying social network analysis in economic geography: framing some key analytic issues," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 43(3), pages 739-756, September.
    22. Andreas P. J. Schotter & Ram Mudambi & Yves L. Doz & Ajai Gaur, 2017. "Boundary Spanning in Global Organizations," Journal of Management Studies, Wiley Blackwell, vol. 54(4), pages 403-421, June.
    23. Petra Sonderegger & Florian Taübe, 2010. "Cluster life cycle and diaspora effects: Evidence from the Indian IT cluster in Bangalore," ULB Institutional Repository 2013/206767, ULB -- Universite Libre de Bruxelles.
    24. Arora, Ashish & Arunachalam, V. S. & Asundi, Jai & Fernandes, Ronald, 2001. "The Indian software services industry," Research Policy, Elsevier, vol. 30(8), pages 1267-1287, October.
    25. Tim Rowley & Dean Behrens & David Krackhardt, 2000. "Redundant governance structures: an analysis of structural and relational embeddedness in the steel and semiconductor industries," Strategic Management Journal, Wiley Blackwell, vol. 21(3), pages 369-386, March.
    26. Sonderegger, Petra & Täube, Florian, 2010. "Cluster life cycle and diaspora effects: Evidence from the Indian IT cluster in Bangalore," Journal of International Management, Elsevier, vol. 16(4), pages 383-397, December.
    27. Anne Ter Wal & Ron Boschma, 2011. "Co-evolution of Firms, Industries and Networks in Space," Regional Studies, Taylor & Francis Journals, vol. 45(7), pages 919-933.
    28. Folta, Timothy B. & Cooper, Arnold C. & Baik, Yoon-suk, 2006. "Geographic cluster size and firm performance," Journal of Business Venturing, Elsevier, vol. 21(2), pages 217-242, March.
    29. Basant, Rakesh & Chandra, Pankaj, 2007. "Role of Educational and R&D Institutions in City Clusters: An Exploratory Study of Bangalore and Pune Regions in India," World Development, Elsevier, vol. 35(6), pages 1037-1055, June.
    30. Yadong Luo & Rosalie L Tung, 2007. "International expansion of emerging market enterprises: A springboard perspective," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 38(4), pages 481-498, July.
    31. Alessandra Perri & Vittoria G. Scalera & Ram Mudambi, 2017. "Corrigendum: What are the most promising conduits for foreign knowledge inflows? innovation networks in the Chinese pharmaceutical industry," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 26(4), pages 745-745.
    32. Baptista, Rui & Swann, Peter, 1998. "Do firms in clusters innovate more?," Research Policy, Elsevier, vol. 27(5), pages 525-540, September.
    33. Gaur, Ajai & Kumar, Mukesh, 2018. "A systematic approach to conducting review studies: An assessment of content analysis in 25years of IB research," Journal of World Business, Elsevier, vol. 53(2), pages 280-289.
    34. Balagopal Vissa & Aya S. Chacar, 2009. "Leveraging ties: the contingent value of entrepreneurial teams' external advice networks on Indian software venture performance," Strategic Management Journal, Wiley Blackwell, vol. 30(11), pages 1179-1191, November.
    35. Martin Gargiulo & Mario Benassi, 2000. "Trapped in Your Own Net? Network Cohesion, Structural Holes, and the Adaptation of Social Capital," Organization Science, INFORMS, vol. 11(2), pages 183-196, April.
    36. Anne L. J. Ter Wal, 2014. "The dynamics of the inventor network in German biotechnology: geographic proximity versus triadic closure," Journal of Economic Geography, Oxford University Press, vol. 14(3), pages 589-620.
    37. Lorraine Eden, 2009. "Letter from the Editor-in-Chief: Time in international business," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 40(4), pages 535-538, May.
    38. Julie M. Hite & William S. Hesterly, 2001. "The evolution of firm networks: from emergence to early growth of the firm," Strategic Management Journal, Wiley Blackwell, vol. 22(3), pages 275-286, March.
    39. Ajai Gaur & Andrew Delios, 2015. "International Diversification of Emerging Market Firms: The Role of Ownership Structure and Group Affiliation," Management International Review, Springer, vol. 55(2), pages 235-253, April.
    40. Aharonson, Barak S. & Baum, Joel A.C. & Plunket, Anne, 2008. "Inventive and uninventive clusters: The case of Canadian biotechnology," Research Policy, Elsevier, vol. 37(6-7), pages 1108-1131, July.
    41. Elisa Giuliani, 2011. "Role of Technological Gatekeepers in the Growth of Industrial Clusters: Evidence from Chile," Regional Studies, Taylor & Francis Journals, vol. 45(10), pages 1329-1348, November.
    42. Maskell, Peter, 2001. "Towards a Knowledge-Based Theory of the Geographical Cluster," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 10(4), pages 921-943, December.
    43. Mahmood, Ishtiaq P. & Zheng, Weiting, 2009. "Whether and how: Effects of international joint ventures on local innovation in an emerging economy," Research Policy, Elsevier, vol. 38(9), pages 1489-1503, November.
    44. Amit Karna & Florian Taübe & Petra Sonderegger, 2013. "Evolution of innovation networks across geographical and organizational boundaries: A study of R&D subsidiaries in the Bangalore IT cluster," ULB Institutional Repository 2013/206760, ULB -- Universite Libre de Bruxelles.
    45. Andrew Delios & Ajai S. Gaur & Shige Makino, 2008. "The Timing of International Expansion: Information, Rivalry and Imitation Among Japanese Firms, 1980–2002," Journal of Management Studies, Wiley Blackwell, vol. 45(1), pages 169-195, January.
    46. Eisingerich, Andreas B. & Bell, Simon J. & Tracey, Paul, 2010. "How can clusters sustain performance? The role of network strength, network openness, and environmental uncertainty," Research Policy, Elsevier, vol. 39(2), pages 239-253, March.
    47. Gaur, Ajai S. & Kumar, Vikas & Singh, Deeksha, 2014. "Institutions, resources, and internationalization of emerging economy firms," Journal of World Business, Elsevier, vol. 49(1), pages 12-20.
    48. Thomas J. Hannigan & Marcelo Cano-Kollmann & Ram Mudambi, 2015. "Thriving innovation amidst manufacturing decline: the Detroit auto cluster and the resilience of local knowledge production," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 24(3), pages 613-634.
    49. Stephen Tallman & Anupama Phene, 2007. "Leveraging Knowledge Across Geographic Boundaries," Organization Science, INFORMS, vol. 18(2), pages 252-260, April.
    50. Srilata Zaheer & Anna Lamin & Mani Subramani, 2009. "Cluster capabilities or ethnic ties? Location choice by foreign and domestic entrants in the services offshoring industry in India," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 40(6), pages 944-968, August.
    51. Ron Boschma, 2005. "Proximity and Innovation: A Critical Assessment," Regional Studies, Taylor & Francis Journals, vol. 39(1), pages 61-74.
    52. Harald Bathelt, 2005. "Cluster Relations in the Media Industry: Exploring the 'Distanced Neighbour' Paradox in Leipzig," Regional Studies, Taylor & Francis Journals, vol. 39(1), pages 105-127.
    53. Stuart, Toby & Sorenson, Olav, 2003. "The geography of opportunity: spatial heterogeneity in founding rates and the performance of biotechnology firms," Research Policy, Elsevier, vol. 32(2), pages 229-253, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ekaterina Turkina & Boris Oreshkin, 2021. "The Impact of Co-Inventor Networks on Smart Cleantech Innovation: The Case of Montreal Agglomeration," Sustainability, MDPI, vol. 13(13), pages 1-17, June.
    2. Hendriks, Guus, 2020. "How the spatial dispersion and size of country networks shape the geographic distance that firms add during international expansion," International Business Review, Elsevier, vol. 29(6).
    3. Mukherjee, Debmalya & Kumar, Satish & Mukherjee, Deepraj & Goyal, Kirti, 2022. "Mapping five decades of international business and management research on India: A bibliometric analysis and future directions," Journal of Business Research, Elsevier, vol. 145(C), pages 864-891.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Karna, Amit & Florian A. Taeube & Petra Sonderegger, 2014. "Economic Geography and Networks: Role of local and non-local ties in Cluster Evolution," IIMA Working Papers WP2014-12-01, Indian Institute of Management Ahmedabad, Research and Publication Department.
    2. Hervas Oliver,Jose Luis & Gonzalez,Gregorio & Caja,Pedro, 2014. "Clusters and industrial districts: where is the literature going? Identifying emerging sub-fields of research," INGENIO (CSIC-UPV) Working Paper Series 201409, INGENIO (CSIC-UPV).
    3. Joan Crespo & Frédéric Amblard & Jérôme Vicente, 2015. "Simulating micro behaviours and structural properties of knowledge networks: toward a “one size fits one” cluster policy," Papers in Evolutionary Economic Geography (PEEG) 1503, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Feb 2015.
    4. Sonderegger, Petra & Täube, Florian, 2010. "Cluster life cycle and diaspora effects: Evidence from the Indian IT cluster in Bangalore," Journal of International Management, Elsevier, vol. 16(4), pages 383-397, December.
    5. José Antonio Belso-Martínez & María José López-Sánchez & Rosario Mateu-García, 2018. "New MNE subsidiaries in old clusters: when, why, and how," Review of Managerial Science, Springer, vol. 12(2), pages 441-467, March.
    6. Elisa Giuliani, 2008. "What drives innovative output in emerging clusters? Evidence from the wine industry," SPRU Working Paper Series 169, SPRU - Science Policy Research Unit, University of Sussex Business School.
    7. Christian Longhi, 2017. "Cluster Dynamics: Learning from Competitiveness Cluster Policy. The Case of 'Secure Communicating Solutions' in the French Provence-Alpes-Côte d'Azur Region," GREDEG Working Papers 2017-42, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France.
    8. Eisingerich, Andreas B. & Bell, Simon J. & Tracey, Paul, 2010. "How can clusters sustain performance? The role of network strength, network openness, and environmental uncertainty," Research Policy, Elsevier, vol. 39(2), pages 239-253, March.
    9. Pierre-Alexandre Balland & José Antonio Belso-Martínez & Andrea Morrison, 2014. "The Dynamics of Technical and Business Networks in Industrial Clusters: Embeddedness, status or proximity?," Papers in Evolutionary Economic Geography (PEEG) 1412, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Apr 2014.
    10. Ron Boschma & Koen Frenken, 2015. "Evolutionary Economic Geography," Papers in Evolutionary Economic Geography (PEEG) 1518, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised May 2015.
    11. Abbasiharofteh, Milad, 2020. "Endogenous effects and cluster transition: a conceptual framework for cluster policy," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 28(12), pages 2508-2531.
    12. Ekaterina Turkina & Boris Oreshkin, 2021. "The Impact of Co-Inventor Networks on Smart Cleantech Innovation: The Case of Montreal Agglomeration," Sustainability, MDPI, vol. 13(13), pages 1-17, June.
    13. Mukherjee, Debmalya & Kumar, Satish & Mukherjee, Deepraj & Goyal, Kirti, 2022. "Mapping five decades of international business and management research on India: A bibliometric analysis and future directions," Journal of Business Research, Elsevier, vol. 145(C), pages 864-891.
    14. Anda� T. Arikan & Joris Knoben, 2014. "Sources of Inter-Firm Heterogeneity in Accessing Knowledge-Creation Benefits Within Technology Clusters," Industry and Innovation, Taylor & Francis Journals, vol. 21(6), pages 476-493, August.
    15. Upadhyayula, Rajesh S. & Dhandapani, Karthik & Karna, Amit, 2017. "The Role of Cluster Presence and Quality Certification in Internationalization and Performance of Offshore Service Providers," Journal of International Management, Elsevier, vol. 23(1), pages 72-86.
    16. Ron Boschma & Ron Martin, 2010. "The Aims and Scope of Evolutionary Economic Geography," Chapters, in: Ron Boschma & Ron Martin (ed.), The Handbook of Evolutionary Economic Geography, chapter 1, Edward Elgar Publishing.
    17. Chengguang Li & Rodrigo Isidor & Luis Alfonso Dau & Rudy Kabst, 2018. "The More the Merrier? Immigrant Share and Entrepreneurial Activities," Entrepreneurship Theory and Practice, , vol. 42(5), pages 698-733, September.
    18. José-Vicente Tomás-Miquel & Gabriel Brătucu & Manuel Expósito-Langa & Oana Bărbulescu, 2018. "The Relevance of Collaborative Networks in Emerging Clusters. The Case of Muntenia-Oltenia Regions in Romania," Sustainability, MDPI, vol. 10(7), pages 1-16, July.
    19. Uwe Cantner & Holger Graf & Susanne Hinzmann, 2013. "Policy Induced Innovation Networks: The Case of the German “Leading-Edge Cluster Competition”," Advances in Spatial Science, in: Thomas Scherngell (ed.), The Geography of Networks and R&D Collaborations, edition 127, chapter 0, pages 335-352, Springer.
    20. Mark Lorenzen & Ram Mudambi & Andreas Schotter, 0. "International connectedness and local disconnectedness: MNE strategy, city-regions and disruption," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 0, pages 1-24.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:iburev:v:28:y:2019:i:5:14. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/133/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.