Collaboration in an entrepreneurial cluster: a study of an urban coop

Purpose - Entrepreneurial clusters are viewed by academics, practitioners and policy makers as effective economic tools, associated with new business opportunities and innovation potential. Currently, the advancing cluster discussion is concerned with exploring the interplay and interdependence between cluster members, with collaboration increasingly taking centre stage. Despite this, however, the actual nature of collaboration is not fully understood. This study aims to explore collaboration, examining the underlying aspects of cooperative exchange, relationship-building and trust, and networking and knowledge sharing. Design/methodology/approach - The methodological design is qualitative, utilising a series of semi-structured interviews with a cohort of cluster members, operating in an urban cooperative. Findings - A shared purpose, underpinned by commonly supported value systems, is crucial in the formation of trust-based relationships. Competitive rivalry did not negatively influence motivation for collaboration. Instead, it is superseded by trust-based relationships, which facilitate information flow, acting as an enabler for collaboration. Collaboration, in pursuit of mutually beneficial goals, without fear of opportunism, is enacted through the formation of a number of, and different relationships, dependent on individual goals and/or stage of business development. Informal, rather than formal, relationships are built on respect and unspoken agreements, rather than on written formal contracts. Many “untraded” interdependencies lead to a stable networked cluster environment. Originality/value - This empirical study contributes to and advances entrepreneurial cluster literature providing a deeper understanding for academics and policy makers of the interplay between cooperative exchange, relationship-building and trust and networking and knowledge sharing.