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

  • Eisingerich, Andreas B.
  • Bell, Simon J.
  • Tracey, Paul
Registered author(s):

    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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    File URL: http://www.sciencedirect.com/science/article/B6V77-4Y41TW1-1/2/62ca85fca27eb71824af6607a09293f8
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    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
    Contact details of provider: Web page: http://www.elsevier.com/locate/respol

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    1. Clive Lawson & Edward Lorenz, 1999. "Collective Learning, Tacit Knowledge and Regional Innovative Capacity," Regional Studies, Taylor & Francis Journals, vol. 33(4), pages 305-317.
    2. Ron Martin & Peter Sunley, 2002. "Deconstructing Clusters: Chaotic Concept or Policy Panacea," ESRC Centre for Business Research - Working Papers wp244, ESRC Centre for Business Research.
    3. 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.
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    5. Kaldor, Nicholas, 1972. "The Irrelevance of Equilibrium Economics," Economic Journal, Royal Economic Society, vol. 82(328), pages 1237-55, December.
    6. 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.
    7. repec:hal:journl:hal-00424519 is not listed on IDEAS
    8. 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.
    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. 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.
    11. Schmitz, Hubert & Nadvi, Khalid, 1999. "Clustering and Industrialization: Introduction," World Development, Elsevier, vol. 27(9), pages 1503-1514, September.
    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. Caron H. John & Richard W. Pouder, 2006. "Technology Clusters versus Industry Clusters: Resources, Networks, and Regional Advantages," Growth and Change, Wiley Blackwell, vol. 37(2), pages 141-171.
    14. 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.
    15. 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.
    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. 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.
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