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Straining but not thriving: understanding network dynamics in underperforming industrial clusters

Author

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  • Elisa Giuliani
  • Pierre-Alexandre Balland
  • Andrés Matta

Abstract

We investigate the micro-connectivity drivers of network change in an underperforming industrial cluster in Argentina. Our analysis is based on data collected in two consecutive surveys, conducted in 2005 and 2012, of entrepreneurs in the electronics cluster in Córdoba. We find that social and institutional factors influence micro-connectivity choices at the local level, while firms that are more open to non-local knowledge have the tendency to behave like external stars, potentially limiting the flow of non-locally generated knowledge into the cluster network as it grows. We interpret these results using the intuitions from strain theory and suggest that strain may engender an ‘everyone for themselves’ mentality in the most open cluster firms as they seek to escape from a condition of underperformance. We posit, also, that local social and institutional ties are relevant for most cluster firms to survive, but are not sufficient for the cluster to thrive.

Suggested Citation

  • Elisa Giuliani & Pierre-Alexandre Balland & Andrés Matta, 2019. "Straining but not thriving: understanding network dynamics in underperforming industrial clusters," Journal of Economic Geography, Oxford University Press, vol. 19(1), pages 147-172.
    • Handle: RePEc:oup:jecgeo:v:19:y:2019:i:1:p:147-172.
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    File URL: http://hdl.handle.net/10.1093/jeg/lbx046
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    Citations

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    Cited by:

    1. Li Pengfei & Turkina Ekaterina & Van Assche Ari, 2022. "The Tortoise and the Hare: Industry Clockspeed and Resilience of Production and Knowledge Networks in Montréal’s Aerospace Industry," ZFW – Advances in Economic Geography, De Gruyter, vol. 66(2), pages 81-95, July.
    2. Tsouri, Maria & Hansen, Teis & Hanson, Jens & Steen, Markus, 2022. "Knowledge recombination for emerging technological innovations: The case of green shipping," Technovation, Elsevier, vol. 114(C).
    3. Glückler Johannes & Panitz Robert & Hammer Ingmar, 2020. "SONA: A relational methodology to identify structure in networks," ZFW – Advances in Economic Geography, De Gruyter, vol. 64(3), pages 121-133, November.
    4. Marina Y. Sheresheva & Lilia A. Valitova & Elena R. Sharko & Ekaterina V. Buzulukova, 2022. "Application of Social Network Analysis to Visualization and Description of Industrial Clusters: A Case of the Textile Industry," JRFM, MDPI, vol. 15(3), pages 1-17, March.
    5. Carlos Bianchi & Pablo Galaso & Sergio Palomeque, 2020. "Invention and Collaboration Networks in Latin America: Evidence from Patent Data," Documentos de Trabajo (working papers) 20-04, Instituto de Economía - IECON.
    6. Vladimír Pažitka & Michael Urban & Dariusz Wójcik, 2021. "Connectivity and growth: Financial centres in investment banking networks," Environment and Planning A, , vol. 53(7), pages 1789-1809, October.
    7. You, Shuyang & Zhou, Kevin Zheng & Jia, Liangding, 2021. "How does human capital foster product innovation? The contingent roles of industry cluster features," Journal of Business Research, Elsevier, vol. 130(C), pages 335-347.
    8. Campi, Mercedes & Dueñas, Marco, 2022. "Clusters and Resilience during the COVID–19 Crisis: Evidence from Colombian Exporting Firms," IDB Publications (Working Papers) 12527, Inter-American Development Bank.

    More about this item

    Keywords

    Underperforming industrial clusters; local knowledge network; network dynamics; strain theory; social network analysis (SNA); stochastic actor-oriented models (SAOM) of network change; Argentina;
    All these keywords.

    JEL classification:

    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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