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How can clusters sustain performance? The role of network strength, network openness, and environmental uncertainty

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  • Eisingerich, Andreas B.
  • Bell, Simon J.
  • Tracey, Paul
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    Abstract

    This paper draws on social network theory to develop a model of regional cluster performance. We suggest that high performing regional clusters are underpinned by (1) network strength and (2) network openness, but that the effects of these on the performance of a cluster as a whole are moderated by environmental uncertainty. Specifically, the positive effects of network openness on cluster performance tend to increase as environmental uncertainty increases, while the positive effects of network strength on cluster performance tend to decrease as environmental uncertainty increases. Our findings have theoretical and practical implications for social network research in general, and cluster research in particular.

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    Bibliographic Info

    Article provided by Elsevier in its journal Research Policy.

    Volume (Year): 39 (2010)
    Issue (Month): 2 (March)
    Pages: 239-253

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    Handle: RePEc:eee:respol:v:39:y:2010:i:2:p:239-253

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    Web page: http://www.elsevier.com/locate/respol

    Related research

    Keywords: Geographical clusters Cluster performance Social networks in clusters Environmental uncertainty;

    References

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    1. repec:hal:journl:hal-00424519 is not listed on IDEAS
    2. Breschi, Stefano & Malerba, Franco, 2001. "The Geography of Innovation and Economic Clustering: Some Introductory Notes," Industrial and Corporate Change, Oxford University Press, vol. 10(4), pages 817-33, December.
    3. Robinson, Douglas K.R. & Rip, Arie & Mangematin, Vincent, 2007. "Technological agglomeration and the emergence of clusters and networks in nanotechnology," Research Policy, Elsevier, vol. 36(6), pages 871-879, July.
    4. 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.
    5. Clive Lawson & Edward Lorenz, 1999. "Collective Learning, Tacit Knowledge and Regional Innovative Capacity," Regional Studies, Taylor & Francis Journals, vol. 33(4), pages 305-317.
    6. Adam B. Jaffe & Manuel Trajtenberg & Rebecca Henderson, 1992. "Geographic Localization of Knowledge Spillovers as Evidenced by Patent Citations," NBER Working Papers 3993, National Bureau of Economic Research, Inc.
    7. Ron Martin & Peter Sunley, 2003. "Deconstructing clusters: chaotic concept or policy panacea?," Journal of Economic Geography, Oxford University Press, vol. 3(1), pages 5-35, January.
    8. Schmitz, Hubert & Nadvi, Khalid, 1999. "Clustering and Industrialization: Introduction," World Development, Elsevier, vol. 27(9), pages 1503-1514, September.
    9. Caron H. John & Richard W. Pouder, 2006. "Technology Clusters versus Industry Clusters: Resources, Networks, and Regional Advantages," Growth and Change, Gatton College of Business and Economics, University of Kentucky, vol. 37(2), pages 141-171.
    10. 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.
    11. Akbar Zaheer & Varghese P. George, 2004. "Reach out or reach within? Performance implications of alliances and location in biotechnology," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 25(6-7), pages 437-452.
    12. Stuart S. Rosenthal & William C. Strange, 2003. "Geography, Industrial Organization, and Agglomeration," Center for Policy Research Working Papers 56, Center for Policy Research, Maxwell School, Syracuse University.
    13. Kaldor, Nicholas, 1972. "The Irrelevance of Equilibrium Economics," Economic Journal, Royal Economic Society, vol. 82(328), pages 1237-55, December.
    14. Jarvis, Cheryl Burke & MacKenzie, Scott B & Podsakoff, Philip M, 2003. " A Critical Review of Construct Indicators and Measurement Model Misspecification in Marketing and Consumer Research," Journal of Consumer Research, University of Chicago Press, vol. 30(2), pages 199-218, September.
    15. Michael Porter, 2003. "The Economic Performance of Regions," Regional Studies, Taylor & Francis Journals, vol. 37(6-7), pages 549-578.
    16. Bell, Martin & Albu, Michael, 1999. "Knowledge Systems and Technological Dynamism in Industrial Clusters in Developing Countries," World Development, Elsevier, vol. 27(9), pages 1715-1734, September.
    17. 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.
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    Cited by:
    1. Breandán hUallacháin & Der-Shiuan Lee, 2014. "Urban centers and networks of co-invention in American biotechnology," The Annals of Regional Science, Springer, vol. 52(3), pages 799-823, May.
    2. Andersen, Kristina Vaarst, 2013. "The problem of embeddedness revisited: Collaboration and market types," Research Policy, Elsevier, vol. 42(1), pages 139-148.
    3. Felzensztein, Christian & Stringer, Christina & Benson-Rea, Maureen & Freeman, Susan, 2014. "International marketing strategies in industrial clusters: Insights from the Southern Hemisphere," Journal of Business Research, Elsevier, vol. 67(5), pages 837-846.
    4. Huber, Franz, 2013. "Knowledge-sourcing of R&D workers in different job positions: Contextualising external personal knowledge networks," Research Policy, Elsevier, vol. 42(1), pages 167-179.
    5. Felzensztein, Christian & Brodt, Susan E. & Gimmon, Eli, 2014. "Do strategic marketing and social capital really matter in regional clusters? Lessons from an emerging economy of Latin America," Journal of Business Research, Elsevier, vol. 67(4), pages 498-507.
    6. repec:rom:campco:v:7:y:2011:i:1:p:305-311 is not listed on IDEAS

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