Article

Balancing localization and globalization: Exploring the impact of firm internationalization on a regional cluster

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Abstract

This paper explores the impact of firm internationalization on regional industrial clusters. The past decade has witnessed the popularization of two intertwined trends in geographic competitiveness: globalization and localization. While previous research has sought to understand and analyse how multinational enterprises pursue strategies to capture critical expertise and resources in dynamic regional environments, to date only limited efforts have sought to explore how internationalization affects ‘cluster’ relationships among locally founded, rapidly growing firms. Specifically, this paper explores whether the internationalization of local firms weakens the local relationships associated with industrial clusters. It reports the findings of research conducted on the internationalization of a cluster of companies in the photonics industry. Twenty-three senior executives were interviewed, face-to-face. Grounded theory methodology was applied to the data to create a new conceptual framework to explore how internationalization impacts the embedded social relationships of locally established firms. The findings suggest that, as firms internationalize, intimate local relationships become less significant. As local companies mature and their sales and markets expand, they develop new capabilities and operations. Firms pursuing strategies to develop capabilities outside their home region gain access to outside resources and, in turn, elect to reorient their level of intra- vs. inter-cluster interaction.

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... Knowledge sharing (Martin, Warren-Smith, and Lord 2019;McKeever, Anderson, and Jack 2014;Weber and Weber 2011), innovation (Alsos et al. 2013;Bayat, Schøtt, and Zali 2014;Elo and Vincze 2019;Jensen 2014;Pahnke et al. 2015;Kawarazuka and Prain 2019;Schøtt and Cheraghi 2015;Schøtt et al. 2014) and internationalization (DeMartino, McHardy Reid, and Zygliodopoulos 2006;Leppäaho and Pajunen 2018;Musteen, Datta, and Butts 2014;Solano 2016) are all related to different forms of firm expansion. Knowledge sharing can take place in an interplay among entrepreneurs, culture and communities (McKeever, Anderson, and Jack 2014), and the gender perspective shows how networks are gendered and how culture influences both gendering and the relationship between networks and innovation (Schøtt and Cheraghi 2015). ...
... To expand through internationalization (DeMartino, McHardy Reid, and Zygliodopoulos 2006;Leppäaho and Pajunen 2018;Musteen, Datta, and Butts 2014;Solano 2016), social embeddedness in networks is important (Masiello and Izzo 2019). Both local and international linkages can be beneficial for the internationalization process, with actors in a local context with dense international linkages having an advantage in the internationalization process through the formation of research alliances (Al-Laham and Souitaris 2008). ...
... Both local and international linkages can be beneficial for the internationalization process, with actors in a local context with dense international linkages having an advantage in the internationalization process through the formation of research alliances (Al-Laham and Souitaris 2008). Internationalization is also affected by industrial clusters, where local relationships become less important and firms develop new capabilities outside their home regions, which in turn provides access to new resources (DeMartino, McHardy Reid, and Zygliodopoulos 2006). Social embeddedness in networks also translates into higher firm performance and growth (Hernández-Carrión, Camarero-Izquierdo, and Gutiérrez-Cillán 2017; Herz et al. 2016;Ozcan and Eisenhardt 2009;Quagrainie 2016). ...
... The role of knowledge-intensive business services, as producers of innovation and new technology, has recently been given consideration (Musolesi and Huiban 2010;Passiante et al. 2003;Teirlinck 2018). Moreover, in relation to peripheral regions, we take into account an unprecedented growth of IT and proliferation of digital connectedness in the periphery instead of the centre, with view to making contribution to 'peripheral entrepreneurialism' and regional learning (DeMartino, Reid, and Zygliodopolous 2006;Julien 2007;Rae 2017). ...
... External knowledge is costly as it encompasses relationships with external agents, such as customers, suppliers, competitors and support agencies outside the cluster (Doran, Declan and Eoin 2012). In addition to transaction costs, firms that reach out to external sources are bound to incur 're-orientation costs ' (DeMartino et al. 2006). Re-orientation cost is the cost of changes and realignment on existing interactions, which arises when firms in a cluster reach outside their home region to gain access to resources and develop capabilities (DeMartino et al. 2006;Pounder and John 1996). ...
... In addition to transaction costs, firms that reach out to external sources are bound to incur 're-orientation costs ' (DeMartino et al. 2006). Re-orientation cost is the cost of changes and realignment on existing interactions, which arises when firms in a cluster reach outside their home region to gain access to resources and develop capabilities (DeMartino et al. 2006;Pounder and John 1996). In contrast, increased face-to-face interaction with regional players, instead of reaching outside home region for resources, is likely be less costly since it avoids re-orientation costs (DeMartino et al. 2006). ...
Article
We investigate how intra-cluster knowledge exchange affects the frequency of product innovation. Based on self-administered survey data of digital SMEs from Bournemouth and Poole regions of England, this study shows that digital firms that sustain both temporary and prolonged relationships with outbound employees have a higher probability of introducing frequent product innovation. Moreover, while cognitive proximity and the use of external knowledge providers increase the probability of frequent product innovation, geographical proximity reduces it. Our findings suggest that managers of young digital firms with limited resources in peripheral regions should 'act near' before reaching out.
... Underlying technologies and components levels remain strongly science-based, with a majority of Small and Medium-sized Enterprises (SMEs) and spin-offs maintaining strong ties with universities (75% of SMEs studied by Hendry et al., 2000). On the contrary, big firms dominate in end-user markets, with less links to the local milieu (DeMartino, McHardy Reid, & Zygliodopoulos, 2006). A growing part of innovation in photonics is now driven by applications of these technologies in end-user industries, involving complex knowledge interactions between photonics and non-photonics firms. ...
... Existing empirical work suggests a high degree of spatial clustering of photonics firms (Feldman & Lendel, 2010;Hassink & Wood, 1998). Some well-known photonic clusters have been studied in recent papers: the Rochester photonic cluster in the U.S. (DeMartino et al., 2006); the Iena and Munich clusters in Germany (Hassink & Wood, 1998) and the Saclay cluster near Paris. But traditional territorial models such as industrial districts or clusters fail to explain the spatial structure of the photonics industry (Hendry & Brown, 2006;Hendry, Brown, & Defillippi, 2000;Ketelhöhn, 2006). ...
... But traditional territorial models such as industrial districts or clusters fail to explain the spatial structure of the photonics industry (Hendry & Brown, 2006;Hendry, Brown, & Defillippi, 2000;Ketelhöhn, 2006). For example, DeMartino et al. (2006) found little role of intimate local relationships when firms internationalize; Hendry and Brown (2006) found no significant impact of clustering on firms' performances in the U.K. A previous work regarding the Bordeaux photonic cluster suggests that technological recombination in overlapping industries plays a crucial role in the development of this cluster: it has undergone a structural shift from a traditional cumulative to a more combinatorial trajectory. This shift can be explained, on one hand, by the extension of targeted technologies to the whole spectrum of photonic and optical technologies, and, on the other hand, by the development of a very flexible pattern of integration of complementary technological bricks (Becue, Carrincazeaux, & Gaschet, 2009). ...
Article
This article aims at assessing the role of related variety, that is, the relatedness of knowledge bases used by different sectors within a region, as a major driver of clusters’ development. Some recent theoretical papers underline the role of clusters as ‘knowledge platforms’ organizing the recombination of technologies in overlapping industries, following the seminal definition of clusters by Porter as ‘geographic concentrations of linked industries’. In order to investigate the role of related variety in cluster dynamics, we analyse the patterns of development of clusters specializing in photonics in Europe. Photonics constitutes a new and rapidly evolving set of technologies with a high expected degree of technological recombination. However, due to inadequate traditional sectoral classifications, we propose an original method to delineate the perimeter of photonics in patent databases. A two-step algorithm is then used to identify systematically photonic clusters in Western Europe at the local level. In the last part of the paper, a typology of technological trajectories of clusters over the last decades is developed and then correlated with a set of quantitative measures of technological relatedness. The results highly confirm the role of related variety as a major driver of success, particularly for the biggest European clusters.
... For Malerba (2005) or Waxell and Malmberg (2007), the relevant geographic scale depends on the nature of the "fields of interaction" considered: more local for interactions within the employment market and social interaction; mainly regional (or national) for financial and institutional interaction; and more global for industrial and "cognitive" relationships. Lastly, for other authors, the relevant geographic scale depends on the "maturity" of the innovation stakeholders and therefore the stage reached in the "lifecycle" of the sector, technology or system under consideration (see Gertler and Levitte, 2005;Coenen et al., 2006;DeMartino et al., 2006;Waxell and Malmberg, 2007). 24 Pohoryles (2001, p. 31) argues a similar point, defining the "knowledge production system" as "complex interactions and interdependencies between actors positioned at three levels of social aggregation -institutional, national and international -and the interactions between these levels" (see Hamdouch and Moulaert, 2006). ...
... The same is true for Waxell and Malmberg (2007) in their study of the Uppsala cluster in Sweden, which reveals that, for this cluster's young biotechnology businesses, the "local environment" is the benchmark space. In contrast, as soon as they enter into a dynamic of growth and internationalization, they develop mainly outside the local environment (see also DeMartino et al. [2006] for a similar conclusion in relation to the photonics industry in the region of Rochester in the State of New York). ...
Article
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Based on the case of the biopharmaceutical industry, the aim of this paper is to challenge the core conviction now widespread within the “spatial clustering theory”, which devotes a key (if not exclusive) role to geographical proximity in explaining clustering dynamics of innovation activities within spe-cific territories. Our argument is threefold. First, mere geographical proximity is not enough; in many cases, cognitive, organizational and strategic forms of proximity are often at least as crucial as the topological closeness among inno-vation actors. Second, our idea is that clusters are fundamentally the territoria-lized outcome of combinations of inter-organizational and social networks among actors pursuing common goals, each of these actors having a specific territorial and social embedding that allows him or her (or not) to operate and interact at different spatial scales. These networks are socially and territorially embedded, but they can operate at various spatial scales. Third, sector-driven dynamics – as is in the case of biopharmaceuticals – may structurally frame the way the actors interact and collaborate in R&D projects and innovation proce-sses. Indeed, the dynamics underlying the emergence, structuring and evolution of biopharmaceutical clusters are both multi-actor and multiscalar. In this perspective, clusters and networks appear to be intertwined phenomena, con-substantial one to each other, and co-evolving organizational modes of biop-harmaceutical innovation.
... This increasing centrality positively affects the development of international relations. SMEs can accelerate the development of new processes and products and obtain useful advice about product design or marketing, and they can find it easier to establish relationships with international partners that could help to increase their international presence (De Martino, Mc Hardy Reid, & Zygliodopoulos, 2006;Majocchi, Bacchiocchi, & Mayrhofer, 2005;Schwens & Kabst, 2009). In addition, highly connected SMEs can use their status and power in the domestic market to establish international links (Gnyawali & Madhavan, 2001). ...
... Future studies could obtain data about the evolution of the positions SMEs hold in their international markets, and compare these with the ones developed domestically. In this sense, several studies have argued that there are substituting effects between domestic and international networks (De Martino et al., 2006;Henisz & Macher, 2004). It would be necessary to look in more depth at which positions the firms have in each case and which have a reinforcing role that helps the firm's competitiveness domestically and internationally. ...
Article
The objective of this research is to study the influence of the evolution of the domestic clustered network on the development of the international relationships of firms. Building on international business theory and the dynamic geographically bounded networks approach, and using a social network analysis methodology, we analyse how increasing the number of contacts and the betweenness role of the firm, as well as the diversity and density of the domestic network, can allow firms to more easily establish international links.
... The analysis proposed by economic geography research has been the study of the evolution of network models with territorial bases formed by same-sector firms, such as the local production system, innovation milieu, industrial area and industrial district/cluster (Biggiero, 2006;Menghinello et al., 2010;Martin and Sunley, 2011). Another line proposed by management theory has been the study of firm strategy (Bianchi, 2001;DeMartino et al., 2006;Hervas-Oliver and Albors-Garrigos, 2009). Despite the research effort undertaken, there is still a lot of controversy regarding the issues of uneven profitability and the net balance between positive and negative externalities and firm performance (McCann and Folta, 2008). ...
... In the T&C industry, the end in 2005 of the WTO (World Trade Organization) system of quotas that had been in place for several decades, resulted in a very large growth of imports from emerging markets, namely China and other Asian countries (WTO, 2012). This boom in the imports of clothing threatened the survival of the European T&C industry and led to a new strategy of importing inputs from low cost countries and/or relocating production activities to those countries (Samarra and Belussi, 2006;DeMartino et al., 2006). In this way, production activities have been progressively replaced with non-production activities, such as design, sales and marketing, accompanied by the multi-location of the firms (Molina-Morales and Martinez-Fernandez, 2006). ...
Research
Full-text available
Globalization has led to a debate about the future of European Traditional Manufacturing Sectors (TMS). Based on firm-level data from five European countries, we analyse how agglomeration and strategy-structure binomials mediate the effects of globalization on the financial performance of textile-clothing firms. Our analysis reveals that Northern European firms are organized as larger and vertically integrated firms more focused on higher value added products whereas Southern European firms are Small and Medium Enterprises SMEs that are geographically clustered and focused on lower value added products. In this context Northern European firms generate better financial performance under globalization. Conference version: http://www-sre.wu.ac.at/ersa/ersaconfs/ersa12/e120821aFinal00533.pdf
... Vgl. DeMartino et al. (2006), S. 7;Wood et al. (2005), S. 5;Williamson (1985), S. 122. ...
Thesis
Cluster und deren Management sind seit den 1990er Jahren im Fokus von Wissenschaft und Politik und werden als Instrument für globale Wettbewerbsfähigkeit genutzt. Die Europäische Kommission stellt dazu fest: "What is abundantly clear is that the stimulation of networking, including in the clusters […] is crucial and requires attention from policy makers". Um das Instrument Cluster gewinnbringend zu nutzen, ist es notwendig zu wissen, wie ein erfolgreiches Clustermanagement abläuft und gestaltet werden kann. Ziel der vorliegenden Arbeit ist es, diese Themenstellung anhand der deutschen Automobilindustrie zu untersuchen. Die deutsche Automobilindustrie ist für dieses Vorhaben von großem Interesse, da sie sowohl aus gewachsenen, als auch aus politisch initiierten Clustern besteht. Theoretischer Bezugsrahmen für die Arbeit ist die Transaktionskostentheorie, die eine Struktur zur Messung der Vorteilhaftigkeit einer Organisationsform vorgibt. Nach der Ausarbeitung der konzeptionellen Grundlagen der Clusterbildung wird über eine empirische Erhebung die Forschungsfrage erörtert: Welche Effizienzgewinne innerhalb der verschiedenen Transaktionskostenarten lassen sich in der deutschen Automobilindustrie durch Clustermanagement erzielen, das durch Unternehmen oder politische Instanzen initiiert wird? Die Untersuchung zeigt, dass die Unternehmen hier in der Verantwortung sind, konkret ihre Interessen zu formulieren und an ausgewählten Aktivitäten im Cluster teilzunehmen, um einen Vorteil zu generieren. Die opportunistische Teilnahme an einem angebotenen Programm zeigt nicht die gewünschte Effizienzsteigerung.
... Globalization is one of the factors that can exert pressure to change the territorial distribution of the manufacturers that traditionally formed an LPS (Buckley and Ghauri 2004;DeMartino et al. 2006). Due to globalization, industrial districts (clusters) may undergo significant change over time (Martin and Sunley 2011;Ha-Brookshire and Lee 2010): the districts appear and grow, change their features and their orientation, modify their internal patterns, may transform, or may languish and disappear. ...
Article
Full-text available
In a globalized economy and becoming more knowledge-based, two apparently contradictory phenomena are shaping the organization and location of many mature economic activities: a general tendency of firms to agglomerate geographically while traditional clusters (and notably industrial districts) are facing a period of crisis in their identity, structure, and cohesion. Since the turn of the new century, regulatory changes, intensified global competition, rapid changes in technology and markets, and increasing complexity and uncertainty in the business environment, have created a more dynamic and globalized market conditions for the European firms of mature industrial sectors, like textile and clothing (T&C) industry. As a result of these changes and of the firms’ responses, the future of this industry and of the regions where it is located has been put into question. The aim of this research is to determine the territorial dynamics of startups in the textile and clothing industry in Spain. For this research, we have adopted a historical perspective focused on analysis of the intersection of the geographical locations of startups in Spain (the industrial district effect) and the main types of activities performed by new-venture firms (the subsector effect). Our results have important implications for the theory and practice in the textile and clothing industry: the need to distinguish the location of a firm when both analyzing its performance and formulating and implementing public policies.
... In addition, there has been a strong focus on strengthening external cluster linkages, and there is a consensus that external links are crucial for cluster evolution and growth. To be innovative, strong clusters are dependent on factors such as new knowledge and networks to avoid lock-in and decline (Bathelt et al., 2004;Breschi & Malerba, 2001;Nadvi & Halder, 2005), and it has been widely acknowledged that such ties need to be balanced between the local and the global (Bathelt et al., 2004;Birkinshaw & Hood, 2000;De Martino, Reid, & Zygliodopoulos, 2006;Fornahl & Tran, 2010;Giblin, 2011;Humphrey & Schmitz, 2002;Kramer & Diez, 2011;Larsson & Malmberg, 1999;Montagnana, 2010;Owen-Smith & Powell, 2004;Perkmann, 2006;Phelps, Mackinnon, Stone, & Braidford, 2003;Raines, Turok, & Brown, 2001;Rosenfeld, 1997;Turok, 1993;White, 2004;Zucchella, 2006). Accordingly, the interplay between spatial levels has been of interest to geographers since the introduction of Porter's cluster concept (Humphrey & Schmitz, 2002;Malmberg & Power, 2006;Martin & Sunley, 2003), famously conceptualized as local buzz and global pipelines (Bathelt et al., 2004). ...
Article
Full-text available
Consistent with Marshallian/Porterian theories, the Norwegian cluster policy has been linked to the development of specialized regional industry environments. Cluster projects are relatively sector-specific entities often supporting (already) strong regional industries and sectors. Following a review of the current literature on clusters and innovation, and informed by evolutionary thought, we argue that such constellations of specialized clusters may hamper the long-term innovation ability of regions. In a conceptual discussion of cluster evolution and its links to innovation and regional path renewal, we argue that special emphasis – both theoretical and political – has been placed on the geographical scale of clusters, but there has been less emphasis on scope. Accordingly, we present three theory-based strategies for cluster evolution and link these to regional development and innovation by assessing their impact on regional path renewal. We illustrate our argument empirically using examples from the Norwegian Centre of Expertise (NCE) cluster programme.
... As part of their remit, policymakers have looked at different ways of facilitating the creation of networks amongst firms with a view to providing new opportunities for knowledge exchange (BODDY, 2000;HUGGINS et al., 2008;PICKERNELL et al., 2007). There are ample examples which demonstrate the active role of policy in supporting such initiatives (DE MARTINO et al., 2006;JOHANNISSON et al., 2007;YUSUF, 2008). Although regions and regionalism is often at the forefront of policy agendas (PEARCE and AYRES, 2009), there has been much criticism over the ability of policymakers to create new knowledge exchange networks for regional firms (HUGGINS and WILLIAMS, 2011;PEARCE and AYRES, 2009). ...
Article
Larty J., Jack S. and Lockett N. Building regions: a resource-based view of a policy-led knowledge exchange network, Regional Studies. This study looks to understanding further about how important the choice of intermediary can be in supporting policy-makers in their regional development activities. Drawing on the resource-based view as a framework, it provides new insights into resource combinations underpinning the successful creation and expansion of a regional network for knowledge exchange. Through an in-depth study of a partnership of three intermediaries involved in designing and implementing a regional information and communication technology (ICT) network, the study highlights that policy-makers need to consider not only the organizational resources of intermediaries but also the resources of key individuals from those organizations.
... Extra-cluster sources generally provide novel knowledge that is different from what usually circulates inside the cluster, thus enabling cluster firms to renew ideas and to break with pre-established concepts (Schilling 2005;Cattani and Ferriani 2008). In fact, these external interactions can prevent clusters from declining (De Martino, Mc Hardy Reid, and Zygliodopoulos 2006). Hence, the capacity to identify and adapt to external changes and developments is critical for the cluster (Robertson, Jacobson, and Langlois 2009). ...
Article
The present study assesses the explanatory capacity of three levels of factors, namely, internal to the company, and internal and external to the cluster, in predicting firms' incremental innovative performance in cluster contexts. The empirical research conducted here focuses on a sample of 92 companies from the Spanish textile industrial cluster in Valencia. Findings reveal that the significant role played by firms' interorganizational ties as a moderating factor between absorptive capacity and their incremental innovative performance. Additionally, results reflect the differentiated roles developed by intra‐ and extra‐cluster linkages in these interaction processes.
... Pour d'autres auteurs encore, ce processus d'ouverture est même vu comme un phénomène naturel inscrit dans le cycle de vie des clusters High-Tech (Owen-Smith et al., 2002 ;Gertler et Levitte, 2005). Dans ce cadre, les liens locaux tendent généralement à décliner progressivement -selon une logique de cercles concentriques centrifuges (13) (DeMartino et al., 2006 ;Waxell et Malmberg, 2007) -en importance à l'issue de la phase de construction du cluster au profit de liens plus diversifiés (d'un point de vue organisationnel et (12) Pour une typologie des formes de connaissances échangées au sein des clusters (selon leur degré de mobilité), cf. Asheim et Gertler (2005). ...
Article
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La littérature sur les clusters High-Tech a connu un développement remarquable au cours des années récentes. Elle a permis de souligner la spécificité des secteurs High-Tech (notamment les technologies de l’information et de la communication et les sciences de la vie) et des logiques spatiales et réticulaires d’organisation des dynamiques d’innovation sur lesquels ils s’appuient. Cependant, en dépit de sa richesse, cette littérature présente une grande hétérogénéité d’approches qui rend difficile la compréhension des formes et des logiques de clusterisation dans ces secteurs. Cet article propose une lecture critique de ces travaux et esquisse une grille de lecture visant à les mettre en perspective de manière constructive en vue d'investigations futures dans ce domaine.
... Instead of investing on local interactions with younger and less experienced firms, old firms can learn about the technological, managerial and competitive environments directly by their own experience. Moreover, they can establish relationships with distant agents that provide a source of knowledge they can use to improve their performance (Belso-Martinez 2006;De Martino et al. 2006;Hendry et al. 2000). ...
Article
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We argue that the benefits provided by locations inside science and technology parks evolve over time. Firms inside parks can improve performance due to certain advantages related to knowledge spillovers and shared resources that can be particularly useful in earlier stages of the industry life cycle. In these industries, local knowledge sharing is particularly useful because no standards are clearly established, as we have confirmed in a sample of 12,800 firms from the PITEC database, located either on- or off-park. We also find that young firms can benefit more from the park than more established businesses in terms of both business growth and innovative capacity. Although older firms have greater experience and investments that would increase their capacity to absorb external knowledge, their associated rigidities prevent them from incorporating changes into their structures.
... On the other hand, the majority of the studies about business tie have been focused on clusters, industrial districts and/or conglomerates (Schmitz 1999, De Martino et al. 2006, Grabher & Ibert, 2005Waxell & Malmberg 2007). In other words, they have been based on the study of geographically concentrated businesses. ...
Article
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The aim of this paper is to explain what a multienterprise tie is, what evidence its analysis provides and how does the cooperation mechanism influence the establishment of a multienterprise tie. The study focuses on businesses of smaller dimension, geographically dispersed and whose businessmen are learning to cooperate in an international environment. The empirical evidence obtained at this moment permits to conclude the following: The tie is not long-lasting, it has an end; opportunism is an opportunity to learn; the multi-enterprise tie is a space to learn about the cooperation mechanism; the local tie permits a businessman to alternate between competition and cooperation strategies; the disappearance of a tie is an experience of learning for a businessman, diminishing the possibility of failure in the next tie; the cooperation mechanism tends to eliminate hierarchical relations; the multienterprise tie diminishes the asymmetries and permits SME's to have a better position when they negotiate with large companies; the multi-enterprise tie impacts positively on the local system. The collection of empirical evidence was done trough the following instruments: direct observation in a business encounter to which the businesses attended in 2003 (202 Mexican agro industry SME's), a survey applied in 2004 (129), a questionnaire applied in 2005 (86 businesses), field visits to the businesses during the period 2006-2008 and; a survey applied by telephone in 2008 (55 Mexican agro industry SME's).
... Las redes locales, en cuyos vínculos impera la competencia, tienden a debilitarse en la medida en que las empresas que le conforman se internacionalizan (De Martino, et al 2006). Contrario a esto último, aquellas redes en las que la cooperación impera se fortalecen y se benefician de la inserción internacional de alguna de sus empresas. ...
Article
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El objetivo es exponer la Responsabilidad Social como generadora de venta-jas competitivas internacionales para la empresa agroindustrial mexicana. Se aplicaron cuestionarios a una muestra aleatoria de empresarios, se realizaron entrevistas a profundidad con informantes clave y se analizaron 26 casos atípi-cos a partir de la teoría sobre la internacionalización. Estos casos coinciden con el perfil Socialmente Responsable Latinoamericano, han aumentado su partici-pación en los mercados exteriores sin crecer y han fortalecido los vínculos con la localidad de origen. Existe un círculo virtuoso entre la Responsabilidad Social en la Empresa y la generación de ventajas competitivas.
... Whereas previous studies about the benefits of locally oriented internationalization strategies have predominantly focused on large firms -namely multinational enterprises (MNEs) (e.g. De Martino, McHardy Reid, and Zygliodopoulos 2006;Gellynck, Vermeire, and Viaene 2007;Semlinger 2008) -internationalization orientations with more global scopes have been reported among small and medium-sized enterprises (SMEs) in the international entrepreneurship literature (Knight and Cavusgil 2004;Loane and Bell 2006). Whether -and if so, how -international SMEs can benefit from locally oriented internationalization strategies is understudied. ...
Article
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This study identifies a gap in research concerning how small and medium-sized enterprises (SMEs) can benefit from pursuing locally (rather than globally) oriented internationalization strategies. Becoming overly dependent on one single foreign market could potentially reduce the inflow and diversity of new knowledge that can serve as input for new product development. This study discusses how this risk can be minimized. In this endeavour we create a theoretical model that investigates how the local sales concentration and relationship-specific commitment of SMEs relates to new product development. To do this we draw on the behavioural internationalization process framework. The theoretical model is tested on an effective sample of 188 Swedish SMEs. The results show that relationship-specific commitment mediates the effect of local sales concentration on new product development. The implication is that investments which enable collaboration in important business relationships are crucial requisites for keeping firms innovative and in pace with market fluctuations. The findings thus contribute to international business literature by showing that a local market scope of operations combined with a relationship orientation are beneficial for new product development in international SMEs.
... Prior research (Mudambi et al., 2016(Mudambi et al., , 2017 has also revealed that competition can motivate alliance formation and industry clustering as well as shared learnings that ultimately shape firms' competitive positions. De Martino, Reid, and Zygliodopoulos (2006) found that firms electing to develop capabilities outside their local region and gain access to outside resources reorient their degree of intra-cluster vs. intercluster interaction. In summary, there is strong evidence for the various drivers and marketing resources that influence the different phases of cluster development and so we propose: ...
Article
This study focuses on changes over time in inter-firm cooperation of an export-oriented regional cluster within a Latin American emerging economy. The study was conducted in the Chilean salmon industry. A longitudinal study, collecting primary data from managers, was conducted over ten years. Unexpectedly, findings revealed that as the cluster matured, firm's members tended towards more individual behaviour than strategic inter-firm cooperation though, they continued to cooperate in more basic cost-reducing strategies. This result extends the industry cluster literature and provides insights into the cooperative and competitive changes that take place over time.
... Numerous corporations have developed global strategies to go transnational, and as a result, they face more complex and dynamic environments involving different countries and cultures. A major issue for multinational companies nowadays is the balance between globalization, to integrate diverse business across geographic areas and cultures, and localization, to respond to local conditions (De Martino et al., 2006;Lu and Bjorkman, 1997;Mejia et al., 2016). In order to effectively manage business operations in different markets and societies, corporations need to reorient and are required to be cosmopolitan, adopting a universal perspective to implement their global strategy as well as having an open mindset to understand diverse cultures. ...
Article
With the rapid growth of global business and travel, many international hotel companies have expanded their operations to China. Effective staff strategy becomes a key issue when corporations face a paradox between their strategic mission in the global context and their daily operations in local environments. Through in-depth interviews with executives and senior managers from hotel associations, international hotel groups and hotel owners, this paper explores the current managerial structure of international luxury hotels and how it is shaped by this paradox. The findings indicate that international hotel companies prefer to assign cosmopolitan general managers to run their properties and maintain company policies and standards, while using local medium managers or seconds-in-command to assist the key executives in dealing with local issues. By rethinking this phenomenon under the wider contexts of globalization and cosmopolitanism, we argue that the current managerial structure represents a cosmopolitan elite culture developed in the context of Western modernity. The influences of the hotel industry's features and the outstanding characteristics of the Chinese context on the talent localization process are also discussed, and some implications are provided.
... Owen-Smith and Powell (2002) have thus shown that for the Boston biotechnology community, the access to new knowledge is not limited to local and regional interaction, but is often acquired through interregional and international strategic partnerships. This finding suggests that firms in clusters gain competitive advantages from implementing both local and global strategies (DeMartino et al., 2006). Thus, along with the " local buzz " , firms need to establish " global pipelines " , channels of communication built to attain knowledge outside the local milieu (Bathelt et al., 2004). ...
Article
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Purpose – The purpose of this study is to investigate the internationalization of international new ventures (INVs). Specifically, this research explores the ways in which a formal cluster can facilitate the internationalization process of these firms. Design/methodology/approach – The authors studied how four INVs benefitted from the actions of two clusters in France – Systematic and Mov’eo – as they internationalized. They conducted semi-structured interviews with the CEOs and other representatives of the INVs and with the members of the cluster management teams. Findings – The findings indicate that clusters can facilitate the internationalization of INVs by providing resources, networking opportunities and legitimacy to help them reach global markets and by increasing the speed of internationalization. Originality/value – By analyzing the specific role that a formal cluster plays in the internationalization of INVs, this research contributes to the literature examining the link between location and INV internationalization. The authors argue that the cluster’s role can be considered as that of an intermediary organization helping INVs to expand globally.
... To be innovative, strong clusters are dependent on new knowledge, information and networks, among other items, to avoid lock-in and decline (Bathelt et al., 2004;Breschi and Malerba, 2001;Nadvi and Halder, 2005). It has been widely acknowledged that such ties need to be balanced between the local and the global; the embeddedness (Hess, 2004) of both clusters and firms within clusters has been extensively investigated (e.g., De Martino et al., 2006;Fornahl and Tran, 2010;Kramer and Revilla-Diez, 2011;Montagnana, 2010;Perkmann, 2006;White, 2004). Bathelt et al. (2004) argue, for instance, that the coexistence of intense local networking and a high number of external linkages facilitate collective learning processes that trigger innovation in the cluster. ...
Article
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For more than two decades, cluster theory has served as a basis for widespread implementation of regional development policies in several countries. However, there are still persistent struggles in academia towards agreement on clear operational definitions of a cluster. In this article, we argue that this definitional haziness, reflected by difficulties in demarcating the scale and scope of clusters, leads to a stretching of the cluster concept when put into practice. We show how actors, through cluster projects, are utilizing strategies of “hubbing” and/or “blending” to develop their own understandings of both what clusters are and what they might or should be. Through studies of three Norwegian cluster projects, we argue that national cluster policies, through translation of an academically vague concept, facilitate a stretching of the original definition of clusters, giving regional stakeholders leeway to integrate other theoretical rationales instead. We argue that this is not taken into account in current policies.
... In fact, a number of authors have already suggested that much of the innovation in clusters may derive from outside of the cluster (Asheim and Belussi, 2007;Boschma and Ter Wal, 2007;Maskell et al., 2006). Even, it is argued that without such external interactions the cluster may accelerate its decline (De Martino et al., 2006). ...
... This paper examines the motivations for cluster firms to internationalize. Since the 1990s, industrial clusters have, in general, become more international, both inwardly through foreign investments in multinational enterprises (MNEs) and outwardly through the internationalization of cluster firms (Amdam & Bjarnar, 2015;Bellandi & Caloffi, 2008;Bertolini & Givannetti, 2006;deMartino, Reid, & Zygliodopoulos, 2006;Hervás-Oliver & Albors-Garrigós, 2008;Pelegrín & Bolancé, 2008;Phelps, 2008;Yeup & Le-Yin, 2008). Extant research shows that cluster membership has a positive impact on early internationalization through access to collaborative networks and resources (Porter, 1998;Storper, 1992;Zucchella, Palamara, & Denicolai, 2007). ...
Article
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This paper explores the implications of the collective identity of a regional cluster on firms’ internationalization. Prior research has established the value of cluster “insidership” through access to knowledge and resources. Through a longitudinal study, we find that cluster identity, through distinct identity claims, provides imperatives and shapes the motivation of firms to internationalize. These imperatives, we argue, stem from cluster identity seen as defined features of regional collectives, extending reference theory to encompass the role of social cues from similar firms located geographically close. The imperatives are particularly salient in the early stages of firms’ internationalization, adding the role of cluster identity to explain the differences between inexperienced and experienced firms in internationalization.
... Globalization and internationalization impact the embedded social relationships of locally established firms. Therefore, firms should intimate local relationships to expand their sales and markets (DeMartino, Reid & Zygliodopoulos, 2006). CDN RIVAL CASE STUDY 5 Competition. ...
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The sole CDN Company, Akamai, couldn’t keep its position among the new competitors, especially in their local markets. The international company should deal with each market according to its conditions which are usually different from the other markets. This localization or globalization problem was the challenge the Akamai encountered. It was in a position to respond properly in order to maintain its dominating position or at least keeping a good market share in the targeted countries. The organization structure, as well as the marketing mix, will be analyzed to investigate the problem root causes. Based on the analysis, the solution strategies could be proposed and how its implementation plan as well.
... Homegrown MNEs tend to develop large global supply chains with emerging countries, thus extending their business at the global level. The thickness of the relationships among cluster firms tends to decline, however, as does the level of cooperation and embeddedness (De Martino, Mc Hardy Reid, & Zygliodopoulos, 2006). MNEs acquire or ally with some of the most successful cluster firms (Biggiero, 2002;De Marchi et al., 2018;Oliver et al., 2008;Teubal, Avnimelech, & Gayego, 2002). ...
Article
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The literature on clusters is based on the seminal writings of Marshall, followed by Becattini’s rediscovery of the concept of the ‘industrial district’ and the analyses promoted during the 1980s by Porter, who highlighted the importance of geographically interconnected firms and institutions specialized in a particular field and clustered in a limited space. Although the cluster model is often described as being static and locally self-contained, various empirical studies and our analysis have pointed out the increasing involvement of cluster firms in the process of change, renewal and internationalization. In this context, several modalities may be studied within the cluster life cycle – which proceeds from the process of multinational enterprise (MNE) entry to the development of global value chains and to the emergence of homegrown MNEs – in addition to possible alliances between cluster firms and external MNEs. The recent entry of MNEs in clusters, as well as the phenomenon of homegrown MNEs, do not necessarily require a questioning of the cluster model per se, but they do contribute to showing how complex and interwoven the evolution of local economies is. A rich number of empirical cases will be presented in this review.
... In the light of the worldwide trends of globalization and localization (e.g. De Martino et al. 2006) it is additionally interesting to analyse whether the headquarter location of a company has a moderating influence on the positive firm-specific cluster effect. As shown in model 4, at least for low-tech industries this seems to be the case. ...
Article
The tendency of industries to cluster in some areas and possible effects of this regional clustering have fascinated researchers from multiple disciplines alike. Driven by the success of some clusters, as for example Silicon Valley, the concept has also become quite popular among politicians. Despite the already substantial financial support, a positive cluster effect on the success of the corresponding companies has not been consistently asserted yet. In this context, recently it has been accentuated to further examine the role of contextual influences that might explain the ambiguous effect of clusters on firm s success. The aim of this paper is therefore to investigate the alleged effect of clusters on firm performance and the moderating influence of the specific context by conducting a meta-analysis of the relevant empirical literature. Therefor four different performance variables from four separate publication databases are considered. After the selection and exclusion process, the final sample of the meta-analysis consists of 168 empirical studies. The statistical integration of the corresponding results of these empirical studies indicate that there exists relatively weak evidence for a pure firm-specific cluster effect. Instead, it can be asserted that several variables from different levels of analysis directly or interactively moderate the relationship between clusters and firm s success. For example, it is pointed out that the probability for a positive firm-specific cluster effect is significantly higher in high-tech industries as well as for small and medium-sized companies. Depending on the specific conditions, clusters can therefore be blessing and curse at the same time.
... While the results of environmental hostility on EO are unclear, environmental dynamism has been shown to be a positive motivator of EO (Chakrabarti and Mondal, in press;Rosenbush et al., 2013) as firms work to compete against their rivals with an aim to "beat them to the punch" (Miller, 1983, p.771). Additionally, firms' internationalisation has been found to affect regional industrial clusters such that when firms in a given region experience a greater involvement in international economic activity, local relationships within regional clusters become less significant (de Martino et al., 2006). This process is normally coupled with the acquisition of more advanced capabilities and the establishment of new operations, making a firm more likely to adopt an entrepreneurial strategic posture. ...
... Las redes locales, en las que los vínculos de competencia imperan, tienden a debilitarse en la medida en que las empresas que les conforman se internacionalizan (De Martino, et al 2006). ...
Technical Report
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La Universidad La Salle ha facilitado el desarrollo del proyecto ULSA CA 0012/10 La Responsabilidad Social Empresarial suscitada por los vínculos de cooperación internacional y su impacto en el desarrollo local, que entre sus metas para el primer año tiene la elaboración de un modelo que explique la internacionalización de la PYME latinoamericana con base en su implicación en el programa de cooperación europea AL-INVEST. Para alcanzar dicha meta se analizó la forma en que se internacionalizó la PYME participante en el programa, se identificaron los mecanismos que intervienen en la internacionalización de la misma, y se focalizó el análisis en los casos identificados como articuladores de la red local a la red internacional. A si mismo, el eurocentro Nafin facilitó las bases de datos necesarias para el desarrollo del primer año del proyecto.
... While the results of environmental hostility on EO are unclear, environmental dynamism has been shown to be a positive motivator of EO (Chakrabarti and Mondal, in press;Rosenbush et al., 2013) as firms work to compete against their rivals with an aim to "beat them to the punch" (Miller, 1983, p.771). Additionally, firms' internationalisation has been found to affect regional industrial clusters such that when firms in a given region experience a greater involvement in international economic activity, local relationships within regional clusters become less significant (de Martino et al., 2006). This process is normally coupled with the acquisition of more advanced capabilities and the establishment of new operations, making a firm more likely to adopt an entrepreneurial strategic posture. ...
... Firms that already have extensive international experience are also less likely to improve their performance through using the international experience of others as a knowledge source (Henisz & Macher, 2004;Shaver et al., 1997). Firms with significant international experience can learn about the institutional, technological, and competitive environments in foreign markets by using their direct experience, through the depth and diversity of their exports (Belso-Martinez, 2006; De Martino, Mc Hardy Reid, & Zygliodopoulos, 2006;Hendry, Brown, & Defillippi, 2000). Besides, firms with significant international experience do not depend on the knowledge and perspectives of domestic clustered firms, thus establishing relationships with domestic exporters does not help their performance and it is even possible that these could weaken their performance (Zhang & Pezeshkan, 2016). ...
Article
This research evaluates how firms develop an intermediary role, connecting their international experience with knowledge provided by the domestic network. These firms act as international gatekeepers, providing valuable knowledge about distant markets to their partners in the domestic network. By adopting a network perspective, we mapped from whom the firms obtain knowledge or the kind of relationship that each firm establishes with other members of the network, disentangling how the gatekeeper can, in fact, integrate international and domestic networks. Empirical evidence indicates that gatekeepers develop a domestic network based on closed relationships with domestic partners that have central positions but are not a real threat for them.
... Homegrown MNEs tend to develop large global supply chains with emerging countries, thus extending their business at the global level. The thickness of the relationships among cluster firms tends to decline, however, as does the level of cooperation and embeddedness (De Martino, Mc Hardy Reid, & Zygliodopoulos, 2006). MNEs acquire or ally with some of the most successful cluster firms (Biggiero, 2002;De Marchi et al., 2018;Oliver et al., 2008;Teubal, Avnimelech, & Gayego, 2002). ...
... In these clusters, focal firms or key players may have international experience and act as gatekeepers, identifying potential threats and opportunities, and connecting the other firms with global supply chains and networks. The establishment of international linkages, however, may have a deleterious effect on local linkages (De Martino et al. 2006). Schmitz (1999a) also found that the development of alliances between key firms in the Sinos Valley footwear cluster in Brazil and global suppliers has weakened local cooperation among manufacturers. ...
Chapter
This chapter aims to investigate the association between the country’s development stage and the level of corporate social disclosure of firms operating in these countries. The theoretical background includes a discussion on corporate social responsibility (CSR), corporate social disclosure (CSD) and the influence of country on CSR and CSD. We tested our research hypotheses using the five stages of development presented in the Global Competitiveness Report (GCR) and the Global Reporting Initiative (GRI) reports of 144 countries. The findings confirm the hypotheses that there is a relationship between countries’ stages of development and the disclosure level of these countries. Our results show that countries in the first stages of development present a lower level of CSD, countries in middle stages are associated with average levels of CSD, and countries in the advanced stage present higher levels of CSD. We explain this association based on institutional issues and stakeholder pressures. Our chapter contributes to the understanding of the factors that may influence differences in disclosure among countries. Since most studies about CSD focus on characteristics at the firm level such as size, industry, and managers’ motivations, our study contributes by presenting evidence on the macro level.
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The purpose of this paper was to analyze the impact of resources on export performance of clustered companies. We argue that the insertion in clusters provides access to resources that influence the internationalization process of firms. We conducted a survey in the French wine industry, the main consumer market in volume and second largest producer of wine in the world. The population of the study includes exporting French wineries, located in clusters. The sample consists of 130 French wine exporters, located in different wine clusters. In short, the results indicated that access to cluster’s resources has a positive impact on the process of internationalization and export performance of companies. One managerial implication of the research is the importance of commercial resources. The firms with higher export performance attributed greater importance to their commercial resources. Further studies may measure the utilization of resources in the internationalization strategy, and compare the importance and the use of resources in accordance with the level of export performance of companies.
Article
Transformations in the institutional environment and advances in technological infrastructures have led to a rise in remote work with implications for local environments. While there is significant literature on the social and spatial effects of telecommuting, the growth of remote work warrants a holistic analysis of its specific implications for local economic and community life. Drawing on interviews with representatives of 22 firms in one state, this exploratory study examines how locational factors drive firms’ remote work utilization. Together with an analysis of interviews with 12 remote employees, it also examines how remote work arrangements are modifying firms' and employees' connections to the local environment. The firm interviews indicate that remote work is increasingly utilized as a strategy to overcome regional talent acquisition challenges. The analysis reveals that remote work utilization can rework or attenuate the local economic and social linkages of remote-utilizing firms and remote employees. These findings suggest that the dynamics of remote work in local environments entail processes of disembedding and reembedding moderated by organizational and contextual factors. By situating questions and findings in relation to local contexts, this study details how firm dynamics and work-life patterns associated with remote work introduce opportunities and challenges for community and economic development efforts.
Article
This research contributes to the debate on the determining factors that support access to global value chains by companies belonging to emerging clusters in transition economies. The role of these economies is becoming increasingly relevant in a global world, where discovering new opportunities is focused on increasing market knowledge in order to offer the appropriate products. From a geographical approach, managing both the knowledge flows circulating within the cluster and those coming from external sources can have a positive effect on the companies’ international presence. To analyse these research questions, the wine industry cluster in the Muntenia-Oltenia region of Romania was studied. This wine-growing territory is also known as Romanian Tuscany due to its geographical location. In this area, the wineries have different characteristics depending whether or not they have international projection. The results suggest that local knowledge of the cluster, managed through the network of connections, is necessary for the international presence of the cluster. Moreover, there is a multiplier effect in those wineries where there is foreign ownership, due to their international entrepreneurial character. In summary, this paper contributes to a better understanding of how companies in an emerging cluster work in order to access global value chains.
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This chapter argues that cluster policies in East Asia parallel the advent of a new model of government–business relations that may be labelled ‘entrepreneurial state’. This concept suggests that entrepreneurial aspects of state activity, that were already prevalent within the East Asian developmental states, currently turn out as dominant policy features, thus changing the dominant rationale of government towards an entrepreneurial direction that implies a shift from the developmental assimilation of technological novelties in catch-up growth to their entrepreneurial creation in a setting that allows for technological leadership. The related policy rationale promotes innovation as the source of international competitiveness, framed by a multi-level architecture of governance that strengthens a regionalised type of industrial policies, which points to the formation of cluster policies.
Article
The assessment of firms' innovativeness levels in a specific territory can be assumed to be an important indicator of future innovative collaboration, some of which might also be cluster setup initiatives. Assuming that geographical proximity can also provide a favorable opportunity for strengthening interfirm ties, the goal of the chapter is to discover the best innovation variables for Turkish firms in terms of being members of potential innovative cluster formations. Following an overview of the innovation parameters used in the study, the current situation of the firms in question and their problems are briefly stated. The analysis part includes a regression test to discover the variables affecting firms' innovativeness in order to tackle the problems stated. Regression results have shown that intellectual capital, technology infrastructure, and geographical concentration levels affect the innovation performance of the firms in different regions. The conclusion involves further policy improvements for empowering regional innovation capabilities.
Thesis
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This dissertation investigates the theoretical and conceptual underpinnings of evolutionary economic geography (EEG) and its approach to regional restructuring. A dynamic approach considering that regional industries are continuously renewing (albeit to differing degrees) is developed. Such considerations have largely been ignored in investigations of regional restructuring and much work on EEG, which have instead focused on how to re-establish former contingencies following external shocks, i.e. a reactive approach. The concept of regional industry renewal is discussed, emphasising that regional restructuring is a continuous process characterized by different ‘intensities’ in different regions and/or time periods. Moreover, it is emphasized throughout this dissertation that EEG has addressed the micro level of firms and organizations, the meso level of regional settings, and the macro level of national and international settings. However, particular focus has been put on the meso level, as is illustrated by the literatures on industry clusters, regional innovation systems (RIS) and the concept of related variety. However, ‘uni-level’ approaches focusing on the meso level have implied that EEG has predominantly developed imprecise categorizations of micro-level activity and that the role of the macro level mainly has been approached by looking at supraregional linkages as relatively homogenous. These approaches can largely be classified as static, and dynamic approaches that treat the three levels as integrated are lacking. Thus, the approach to regional industry renewal used herein emphasizes that its sources can be both endogenous and exogenous to a region, and also that agency can play a role in shaping how these processes develop spatio-temporally, i.e. that different actors can proactively contribute to the process. In addition, the few recent contributions investigating the micro, meso and macro levels in conjunction have largely focused on path creation and new industry development, and less so restructuring of existing industry activity. Thus, a multilevel approach to regional industry renewal is developed. Furthermore, this is connected to the debates over the role of structure and agency in EEG. It is argued that EEG has generally ascribed power to structure over agency, but that recent conceptual and empirical works have granted agency (ascribed to the micro level) a more prominent role in the evolution of economic systems. It is proposed that different actors, e.g., firms, industry clusters, and national policymakers, have different scopes and roles in the regional industry renewal processes, but that, importantly, agency resides not only at the micro level but also at the meso and macro levels. The connotation of this argument is for instance that the agency of cluster facilitation can play an important role in regional industry renewal. This is referred to as ‘system agency’, because deliberate actors can play a role in changing structural frameworks, e.g., through changing national regulations or regional innovation policy, and that they, in turn, can influence the practices of other (regional) actors. These issues are explored based on seven papers, each of which used qualitative methodology. The papers contribute with theoretical and empirical insights on the role of agency and multilevel dynamics in regional industry renewal. The empirical work described in these papers focused on the Bergen region in western Norway. Based on this work, the Bergen region is argued to be characterized by beneficial multilevel dynamics as a result of strong firms and research and development organizations, and an industry structure characterized by related and diversified activities. Furthermore, policy has arguably played an important role in contributing to regional industry renewal in the Bergen region, inter alia through RIS development. In addition, the region is also characterized by a largely positive interweaving in global knowledge flow and trade, and several leading firms operate in the region. Thus, the Bergen region serves well as a case study illustrating the theoretical and conceptual approaches developed in this dissertation.
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Consistent with Marshallian/Porterian theories, the Norwegian cluster policy has been linked to the development of specialized regional industry environments. Cluster projects are relatively sector-specific entities often supporting (already) strong regional industries and sectors. Following a review of the current literature on clusters and innovation, and informed by evolutionary thought, we argue that such constellations of specialized clusters may hamper the long-term innovation ability of regions. In a conceptual discussion of cluster evolution and its links to innovation and regional path renewal, we argue that special emphasis – both theoretical and political – has been placed on the geographical scale of clusters, but there has been less emphasis on scope. Accordingly, we present three theory-based strategies for cluster evolution and link these to regional development and innovation by assessing their impact on regional path renewal. We illustrate our argument empirically using examples from the Norwegian Centre of Expertise (NCE) cluster programme.
Book
Barbara Jankowska Koopetycja w klastrach kreatywnych. Przyczynek do teorii regulacji w gospodarce rynkowej.
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The aim of this chapter is to provide a broad understanding of the relationship between entrepreneurship, the internationalization of firms and regional development. It will present a literature review of the internationalization process, attending to related concepts and internationalization theories, and examine the traditional approach versus new patterns of internationalization. In the field of entrepreneurship it will consider the entrepreneurial orientation as a measure of a firm´s entrepreneurship and the relationship with its internationalization. In sum, this chapter aims to reach an understanding of how the entrepreneurial ecosystem, including clusters and networks, as well as entrepreneurial orientation developed by firms, contribute to internationalization of the firm, and the possible regional impacts resulting from entrepreneurship and internationalization.
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Dyskusję nad konsekwencjami globalizacji dla klastrów można osadzić na grun-cie, z jednej strony, teorii zaliczanych do szeroko rozumianego biznesu między-narodowego (international business), a z drugiej – teorii podejmujących zagad-nienia lokalizacji i odległości geograficznej. Debata nad kwestią lokalizacji aktywności gospodarczej w powiązaniu z internacjonalizacją firmy, której szcze-gólnym przypadkiem jest globalizacja, wypływa w koncepcjach dotyczących zachowań korporacji międzynarodowych 2 , a w szczególności w paradygmacie Johna Dunninga (1958; 1973) i w macierzy Alana Rugmana (1996), opisującej decyzje odnoszące się do ekspansji korporacji międzynarodowych. Zagadnienie lokalizacji i odległości geograficznej wyeksponowano także w diamencie Micha-ela Portera, który koncentruje się na mezoekonomicznych determinantach mię-dzynarodowej konkurencyjności firmy i budowaniu przewagi konkurencyjnej 1 Autorka dziękuje anonimowemu Recenzentowi artykułu za cenne uwagi. Artykuł przygotowano w ramach realizacji projektu badawczego MNiSW nr N N112 319938 " Koopetycja w klastrach kreatywnych – implikacje dla międzynarodowej konkurencyjności, innowacyjności i umiędzynarodowienia firm ". Znacznie skrócona wersja tekstu skoncentrowanego na klastrach i globalizacji, bez kluczowych dla prowadzonego wywodu tabel i schematu analitycznego, została w maju 2010 r. zgłoszona na konferencję naukową " Wyzwania gospodarki globalnej " , zorganizowaną przez Uniwersytet Gdański (Jankowska, 2010). 2 Zgodnie z ujęciem Dunninga i Lundan (2008), korporacja międzynarodowa to podmiot zaangażowany w BIZ oraz kontrolujący czynności tworzące wartość dodaną w więcej niż jednym kraju. Studia ekonomiczne nr 2 (LXiX) 2011 * Katedra Strategii i Polityki Konkurencyjności Międzynarodowej, Uniwersytet Ekonomiczny w Poznaniu.
Thesis
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The benefits for firms to be located in clusters are fairly well documented. However, the effects of those benefits on firm internationalization are less clearly understood. We tried to fill that gap by using a research design incorporating two innovative elements. Primarily, the samples of previous studies were mainly composed of firms. We therefore included in our sample other key actors of the cluster. Secondly, the previous studies largely focused on cluster resources and cluster networks. Our research design attempts to integrate those concepts by presenting them in a sequential manner. Our qualitative study is a single case study that uses the Danish Cleantech cluster as a unit of analysis. In April 2015, ten semi-structured interviews were realized in Denmark. Our sample is composed of two civil society institutions, two public institutions, two research institutions and four businesses. Our results show the importance for firms to be active in networks to activate the full potential of the cluster. They confirm that institutions play a role inside the networks to improve availability of certain benefits for firms. Contrary to what was expected, there is little evidence that businesses directly benefit from being located in the cluster for their internationalization.
Article
This paper examines the process by which firms in a cluster start to export based on systemic interactions and the process of diffusion of exporting as a business strategy within the cluster. Two Brazilian manufacturing industries are studied, and within each one a geographic cluster was identified as the origin of dynamic export growth. Players in each industrial cluster, as well as other significant players, were interviewed or identified using secondary sources, and extensive secondary data research was undertaken to study clusters’ historical development. Detailed analysis and a comparison of the two experiences made it possible to draw some general conclusions concerning the similarities and differences between the two clusters in terms of the adoption and diffusion of exporting.
Article
The notion of "people and pipelines" (i.e., interpersonal and intraorganizational networks) is a parsimonious description of the paths by which firms typically engage in boundary-spanning to develop opportunities to innovate and internationalize. Yet, we know little about how requisite connectivity develops for smaller, resource-poor firms whose access to people and pipelines is limited. I propose that small firms, who are members of industry clusters, are able to span their boundaries through bridging ties to people and pipelines via cross-border intercluster alliances. With case-based illustrations derived from cluster managers and small firms within those clusters, this research is intended to extend our understanding of bridging ties as a form of global market boundary-spanning by exploring this emerging phenomenon in the context of resource-poor, entrepreneurial firms who have no alternative, if they are to innovate and internationalize, but to do so on a shoestring budget.
Chapter
From small companies to major enterprises, the COVID-19 pandemic put us all to test. While it has left us facing an unpredictable future, it also offers us the chance to create a self-sufficient and self-reliant India, or “Atma Nirbhar Bharat.” The motivation towards a self-reliant India became stronger after the border conflict with China. Being dependent on China for both finished products and raw material, it is imperative for India to reduce this dependence. The “Atma Nirbhar Bharat” needs to be planned and executed as a nationwide program comprising several projects. Successful execution of this program needs to follow a systematic project management approach. This chapter tries to develop a blueprint for planning and execution of this program which is aimed at a self-reliant India.
Chapter
This chapter analyses the trajectory of the Cabo Frio beachwear cluster in Brazil. Departing from the extant literature on cluster evolution, the study describes the stages of birth, take-off, growth, and maturity of the cluster, focusing specifically on the attempts to develop exporting activities. The results suggest that the lack of cooperation among local firms is the major reason behind the inability to internationalize, although one cannot dismiss the negative effects of the overvalued Brazilian currency, as well as aspects internal to the firms. Change agents have tried to introduce new practices and attitudes toward cooperation in the cluster, but failed to do so. The key issue, therefore, is why the firms in the cluster failed to cooperate, despite several initiatives and investments to promote collective actions. The chapter advances some possible explanations, with implications for other Brazilian clusters.
Thesis
Many of the insightful writings on clusters identify the role of entrepreneurs as key agents in the formation of firms and clusters. This thesis argues instead that local entrepreneurship is not ceased once firms and clusters are established; local entrepreneurship is about the continuous (re)creation of both businesses and clusters in global spaces. Global spaces for local entrepreneurship emphasises how firms collectively become an agent of continuous renewal. Firms enact an organising context materialising in networks that stretch relations and collaborations according to the issues being dealt with. These networks are localised but are extended beyond the geographical boundaries of clusters. One important example of this, which is in focus in this doctoral thesis, is that firms operating in clusters often interact with actors whom they have met at international trade fairs (ITFs). ITFs are those attractive events that individuals, firms and institutions attend temporarily to exhibit and trade products in foreign and national markets. This thesis is based on the work contained in a cover and five papers. Each paper contributes to the research objective and questions brought forward in the thesis cover. The empirical evidence has been mostly drawn from several case studies conducted in the Lammhult cluster in Sweden. The findings show that firms build their organising contexts in order to stretch the reach and accessibility to local and non-local actors; they jointly co-create potential opportunities. The organising contexts are mapped in networks using three proximity orders. The empirical findings report three types of situations in which there is a potential opportunity for continuous renewal. By emphasising the opportunities that can be originated when a business is not realised or when a new or improved product or process has not been generated yet, this thesis aims to stimulate a theoretical reappraisal of global spaces for local entrepreneurship. With the conceptual development of global spaces for local entrepreneurship, we put forward the idea that such spaces enhance an ability to renew firms and clusters. The underlying reason is that local entrepreneurship is centered on the social interaction between individuals, firms and/or institutions; it materialises in intended and unintended dialogical situations when there is a commitment to the continuous renewal of firms and clusters. Such dialogical situations carry with them an opportunity for co-creating new businesses, new products and new processes.
Article
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Researchers in international strategy are increasingly investigating the role of regional clusters as features of international industry, most concerned with the competitive role of clusters and the competitive interactions among cluster firms. We look instead at knowledge sharing between firms through the medium of untraded interdependencies - knowledge exchanged informally and without explicit compensation. We specifically address knowledge development at the firm and the cluster level and examine the role of knowledge stocks and flows in establishing competitive advantage for clusters and firms.
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This article presents a theoretically based method for identifying the clusters of industries in which a region has a competitive advantage. The method combines cluster analysis with discriminant analysis, using variables derived from economic base theory and measures of productivity, to identify the industries in which a region has its greatest competitive advantage. These industries are called driver industries because they drive the region’s economy. The driver industries are linked to supplier and customer industries with information from a region-specific input-output model to form industry clusters. After introductory comments about cluster-based approaches to understanding regional economies, the authors present an overview of their method and the variables used. They then apply this method to the Cleveland-Akron Consolidated Metropolitan Statistical Area.
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The idea of industrial clusters forming the basis of regional economic growth has moved rapidly from academe to policy. This research, which forms part of the ESRC Cities: Cohesion and Competitiveness Programme, suggests that greater clarity is needed in defining and applying the concept in different regions. Several different types of clusters have already been identified. The precise basis of their relative success also seems to be different according to the degree of globalisation present and the position that regions occupy in their national hierarchies. In the case of London and the South East, the research shows that the internal characteristics of firms, the 'pick and mix' possibilities of a large agglomeration, and its position as an international trading gatweway, are critical for success ful innovation in the region.
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Business clusters have been observed and studied since the turn of the century, yet the phenomenon has been vastly underrated and undervalued in economic development and planning policy. As long as branch plants dominate economic development policy, interest in clustering involves merely seeking suppliers for these customers. Today though, as industry restructures, becoming leaner and more flexible, the importance of lateral inter‐firm relationships takes higher policy priority. A comparison of cases from Tupelo, Mississippi and Castel Goffredo, Lombardia, shows the relevance of clustering to localized economic development.
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The purpose of this work is to develop a systematic understanding of embeddedness and organization networks. Drawing on ethnographic fieldwork conducted at 23 entrepreneurial firms, I identify the components of embedded relationships and explicate the devices by which embeddedness shapes organizational and economic outcomes. The findings suggest that embeddedness is a logic of exchange that promotes economies of time, integrative agreements, Pareto improvements in allocative efficiency, and complex adaptation. These positive effects rise up to a threshold, however, after which embeddedness can derail economic performance by making firms vulnerable to exogenous shocks or insulating them from information that exists beyond their network. A framework is proposed that explains how these properties vary with the quality of social ties, the structure of the organization network, and an organization's structural position in the network.
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Disambiguates theories of industrial clusters by providing a framework of three ideal-typical forms of clustering: the classic model of pure agglomeration, the industrial-complex model, and the social network or club model. The first two of these models come from classical and neoclassical economic tradition. The third comes from sociology. An analytic definition of these models and a discussion of their implications are provided. The economic models are also contrasted with the sociological model. The analysis examines how the theories might be empirically tested using actual data from the London area, and discusses the significance of the distinction between these models for policymakers. The model of pure agglomeration arises from Marshall and Hoover. Marshall theorized that firms localize in a given geographic area due to the development of a local pool of specialized labor, the increased local provision of non-traded input specific to an industry, and the maximum flow of information and ideas. Hoover classifies the sources of agglomeration advantages into three groups: internal returns to scale, localization economies, and urbanization economies. Industrial complexes are characterized by sets of identifiable and stable relations among firms which are in part manifested in their spatial behavior. Traditionally, the focus of the analysis under this model is how location affects transaction costs. The social network model sees the creation of organizations is a rational response to the transaction cost problems caused by bounded rationality and opportunism in a pure market-contracting economy. Because such a system requires interpersonal trust, proximity has often be a prerequisite for the development of social networks. (CAR)
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The tripartite model of an old-industrial northwestern part of the country, of an efficient and dynamic Third Italy, mainly driven by small and medium firms' agglomeration, and a peripheral lagging South still influences the economic debate on regional development: small firms tend to be regarded as the most dynamic industrial organisation, and for this reason, regions with a high proportion of small firms tend to have higher economic growth. The aim of the paper is to present the Italian reality on the basis of some recent data on regional growth and innovation patterns. The results are surprising. Among them, that regional industrial structure in Italy seems to depart from the traditional tripartite model and that they diverge with the traditional tripartite model even in the level of competitiveness of Italian regions.
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Two seemingly competing tendencies, the globalization of economic activity and the localization of industries, have captured the interest of scholars, economic development professionals, and policy-makers in recent years. While trends towards globalization of industries and companies appear to reduce the importance and distinctiveness of (subnational) regions, a tendency towards localization of certain industries and economic activities appears to do exactly the opposite. The simultaneous globalization and localization tendencies have created policy challenges for national and local governments. One response to these challenges has been a dramatic proliferation of regional development policies based on regional clusters of firms and industries.
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The Oxford Handbook of International Business contain articles by distinguished scholars in the field of international business. The authors are all authorities on their chosen topics and have been active as leaders in the Academy of International Business. Their articles survey and synthesize relevant literature of recent years. The book is split into five major sections, providing comprehensive coverage of the following areas: the history and theory of the multinational enterprise; the political and policy environment of international business; strategies of multinational enterprises; the financial areas of the multinational enterprise (marketing, finance and accounting, Human Resource Management [HRM], and innovation); and business systems in Asia, South America, and the transitional economies.
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This article outlines a model of regional cluster development in which the clusters and foreign multinational enterprises (MNEs) are interdependent. Such clusters are characterized by a strong or dominant presence of foreign MNEs as well as a strong contribution by cluster-based subsidiaries to the overall strategy of the MNEs. The case of the Hong Kongfinancial-services cluster is used to demonstrate that interdependent clusters provide types of investment opportunities, particularly for “marketplace-seeking” and “information-seeking” investments, and benefits to foreign multinationals that go beyond those usually contemplated in the MNE literature, while the locations housing such clusters receive benefits that also go beyond those usually contemplated. The article concludes with implications for economic policy, firm strategy, and further research on the interaction between clusters and MNEs.
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Innovation has become the defining challenge for global competitiveness. To manage it well, companies must harness the power of location in creating and commercializing new ideas.
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With the publication of his best-selling books "Competitive Strategy (1980) and "Competitive Advantage (1985), Michael E. Porter of the Harvard Business School established himself as the world's leading authority on competitive advantage. Now, at a time when economic performance rather than military might will be the index of national strength, Porter builds on the seminal ideas of his earlier works to explore what makes a nation's firms and industries competitive in global markets and propels a whole nation's economy. In so doing, he presents a brilliant new paradigm which, in addition to its practical applications, may well supplant the 200-year-old concept of "comparative advantage" in economic analysis of international competitiveness. To write this important new work, Porter and his associates conducted in-country research in ten leading nations, closely studying the patterns of industry success as well as the company strategies and national policies that achieved it. The nations are Britain, Denmark, Germany, Italy, Japan, Korea, Singapore, Sweden, Switzerland, and the United States. The three leading industrial powers are included, as well as other nations intentionally varied in size, government policy toward industry, social philosophy, and geography. Porter's research identifies the fundamental determinants of national competitive advantage in an industry, and how they work together as a system. He explains the important phenomenon of "clustering," in which related groups of successful firms and industries emerge in one nation to gain leading positions in the world market. Among the over 100 industries examined are the German chemical and printing industries, Swisstextile equipment and pharmaceuticals, Swedish mining equipment and truck manufacturing, Italian fabric and home appliances, and American computer software and movies. Building on his theory of national advantage in industries and clusters, Porter identifies the stages of competitive development through which entire national economies advance and decline. Porter's finding are rich in implications for both firms and governments. He describes how a company can tap and extend its nation's advantages in international competition. He provides a blueprint for government policy to enhance national competitive advantage and also outlines the agendas in the years ahead for the nations studied. This is a work which will become the standard for all further discussions of global competition and the sources of the new wealth of nations.
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This article addresses the impacts of cluster-based economic development strategies on (a) low- and middle-income people, (b) economically distressed urban and rural places, and (c) small enterprises. It draws on the collective experiences and ideas of a small group of experts and practitioners from various parts of the US and Europe to pinpoint some of the reasons why certain people, places, and firms are left out or fall behind in regional efforts to develop economies based on clusters, identify the barriers to more widely dispersed benefits, and suggest some opportunities for surmounting those barriers. It goes on to recommend new approaches and initiatives that extend opportunities to marginalized populations, less favoured regions, and very small firms and thereby produce more just clusters.
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This article proposes that the idea of a regional sectoral cluster can provide economic development practitioners with more fruitful guidance for local sectoral policy than can the traditional conceptions of the industrial complex Outstanding studies of the steel sector in Chicago and the motion picture industry in Los Angeles illustrate the traditional analyses of the industrial complex. But studies of the optics and imaging sector in Rochester, New York, and the waste management sector in Buffalo suggest that these traditional analyses are excessively rigid for local economic development practice. The lessons lead us to a more open conception of sector-specific interrelationships that local practitioners could draw on to diagnose and strengthen selected sectors in their regions.
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The paper presents the results of an empirical study that aims to investigate the impact of interfirm co-operation over innovation on four different types of innovation: product, process, incremental and radical innovation. Drawing on the innovative milieu literature, the impact on the above four types of innovation was tested for both external and internal factors of innovation such as inter-firm co-operation over innovation, production networking, as well as R&D investment and R&D personnel. Four probit models were run by using a unique data set compiled as part of the Regional Innovation Strategy for the West Midlands (UK) Project. The main findings of the paper seem to provide substantial evidence that, for any of the four types of innovation considered, firms' capacity to innovate could greatly improve if they co-operated with other firms over innovation in addition to or instead of investing in R&D. Innovation policy should not overlook, therefore, the systemic component of innovation and ought to attempt to initiate and support inter-firm co-operation. This would mean a renewed and more focused analysis of firms' clusters as part of a multi-faceted approach to innovation policy.
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We present a model for describing and assessing the strengths and weaknesses of industrial clusters from a regional perspective. The model is a symmetrical framework combining dimensions of the Porter competitiveness `diamond' with an equally explicit accounting of infrastructure and markets, important in a regional framework. Measures are organized under headings of Groundings, Enterprises and Markets, which gives the model its name: GEM. The characteristics of regional innovation systems are contained in the overall competitiveness framework. The GEM determinants are organized in a way that facilitates subjective scoring and allows a mapping onto a more conventional production-system structure. We have developed scoring criteria for each of the six determinants that relate to overall competitiveness of the cluster and have established an heuristic competitiveness function (GEM Assay) that captures the substitution/complementarity relationships among the determinants. We present some examples of the use of the framework and the assay in assessing regional clusters and policies for strengthening them.
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In State, Power, Socialism, Nicos Poulantzas conceptualized a state that materializes and concentrates power and displaces the class struggle from the econ- omic to the political arena. In the past twenty years, much has changed. We argue that economic relations have been transformed by economic globalization, work reorganization, and the compression of space, time, and knowledge transmission through an information and communications revolution. Knowledge is far more central to production, and the locus of the relation between power and knowledge has moved out of the nation state that was so fundamental to Poulantzas' analysis.
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The main objective of regional policy is to reduce regional differences. The means by which this objective is reached have changed considerably. In this paper, four generations of regional policy are discussed. The first generation, dating back to the beginning of the sixties and a time of economic growth, was based on the principle of distribution. As of the end of the seventies, the environment began to change, with no growth left to distribute, but with territorial production systems to be restructured and reorganized. The issue of distribution gave way to the issue of creating specific territorial resources. From being of exogenous nature, regional policy became more endogenous. Thus, the policies of the second–generation were geared to promoting the endogenous development capacities of each region depending on each region's specific resources. With globalization, the opposition between endogenous and exogenous development policies became outdated. Third–generation policies presented a combination of endogenous and exogenous aspects aimed at creating comparative, environmental advantages. Lastly, and more recently, fourth–generation policies have made their appearance, revealing the need to stimulate, in medium–sized towns, the external manifestations of neighbourhood, variety and accessibility.
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Studies contextual networks to explain the network as an intermediary between a firm and its global environment. In contrast to the "habitat" or "milieu," the context model focuses specifically on entrepreneurship -- offering both stability and change, suggesting guidelines but allowing for entrepreneurial independence. Networks are defined as personalized socioeconomic exchange, encompassing both influence and information diffusion. The industrial district, the science park, and the innovative corporation are identified as three fundamental contexts, each consisting of node, local, and global level networks. The industrial district is characterized by competition and cooperation, the science park by separation and integration, and the corporation by coexisting chaos and order. To study these contexts, a 1990 postal survey is conducted in southern Sweden, focusing on Anderstorp industrial district, Ideon science park at Lund University, and Telub Service Corporation. Through graph analysis of the data, Anderstorp is found to be a highly integrated, self-organizing arena for entrepreneurship. Ideon consists of elaborate networks, but members are too loosely bundled, so that they are not typically interconnected. Telub Service has even more elaborate networks, but these are not able to mobilize social relationships. Conclusions show that different context logics reflect how the network is structured. Further comparative studies are needed, including the impact of technology on contexts. Finally, a support strategy is suggested based on socio-economic policy and the results of the study, which would foster entrepreneurial activity by creating arenas for building social and business networks. (CJC)
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First published in 1890, and reaching an eighth edition in 1927, Marshall's Principles of Economics was in its time the dominant textbook on economics in Britain. Intended as a compendium or codification of the whole of economic thought, only the first of two planned volumes was published. Marshall's study is microeconomics, the study of individual markets and industries. Although Marshall considered that the concern of economics was human behavior, he introduced the rigorous use of mathematics, methods of science, and differential calculus. He famously stated that economic evolution is gradual. Marshall introduced time into economic analysis as a powerful tool (partial equilibrium analysis); he isolated various forces and time to work out partial solutions, "other things being equal;" in a step-by-step fashion, more factors are introduced to allow treatment of broad issues and the domain of the dynamic problem becomes larger. Of consumer demand, he developed the concepts of marginal increments and marginal utility, elasticity of wants, immediate and deferred uses, price and utility, and consumer surplus. Marshall analyzed the factors of production as land, labor, capital, and organization. Marshall realized neither labor, supply, or demand could account for price and output; price determination was an equilibrium of normal supply and demand, and he develops the use of demand and supply curves and the concepts of price elasticity of demand, marginal costs, and diminishing and increasing returns. He recognized the link between shifts in supply and demand. He showed that consumers attempt to equal prices to their marginal utility. He also recognized consumer surplus and producer surplus. He used the idea of surplus to analyze the effects of taxes and price shifts on markets. Since markets adjust to changes in supply and demand over time, he introduced the ideas of the market period, the short period when output can be increased by adding labor, and the long-term period for capital to be introduced. Other concepts he developed include those of competitive equilibria, internal and external economies of scale, increasing and decreasing cost industries, quasi-rent, and costs of production. Finally, the issues of distribution of national income are explored: earnings of labor, interest, profits of capital and business, rent of land, and the effect of progress on value and standards of living. (TNM)
Article
ABSTRACT Competitiveness can be defined as the ability of an economy to maintain stable or increasing market shares in an economic activity while sustaining stable or increasing living shares for those who participate in it. Government policy in all countries has strong effects on competitiveness. With the turn away from a Cold War economy the Clinton Administration has pursued a technology policy explicitly linked to the quest for heightened national competitiveness. It is based on a rejection of Reagan-Bush era analyses of the competitiveness problem, which centered on cost reduction in industry. There are many different forms of technology policy for competitiveness, however. Some center on labor quality, while others center on technological spillovers between industries. An effective policy should promote technological spillovers in the economy. All such policies, moreover, are only effective if they are organized and governed properly. The Clinton-Gore policy has many different programs and methods of governance. This paper argues that it should reinforce the regional level of organization of technology policy formulation and implementation.
Chapter
Since the 1970s, the role of small and medium firms in economic development has widely come to the fore in regional economic theory. During this period, especially in Italy, the good performance of regions with a high share of small firms contrasted with the poor and decreasing rate of growth of the traditional large firms of the North-Western part of the country. The so-called ‘Third Italy’ phenomenon became widely known, indicating the high economic performance of North-Eastern and Central regions (NEC)1. A long wave of economic success accompanied the regions of the Third Italy — a success which was explained by the high flexibility of small firms with respect to market volatility, their innovativeness in terms of customised production, and the existence of district economies accompanying territorial specialisation.
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We present a model for describing and assessing the strengths and weaknesses of industrial clusters from a regional perspective. The model is a symmetrical framework combining dimensions of the Porter competitiveness `diamond' with an equally explicit accounting of infrastructure and markets, important in a regional framework. Measures are organized under headings of Groundings, Enterprises and Markets, which gives the model its name: GEM. The characteristics of regional innovation systems are contained in the overall competitiveness framework. The GEM determinants are organized in a way that facilitates subjective scoring and allows a mapping onto a more conventional production-system structure. We have developed scoring criteria for each of the six determinants that relate to overall competitiveness of the cluster and have established an heuristic competitiveness function (GEM Assay) that captures the substitution/complementarity relationships among the determinants. We present some examples of the use of the framework and the assay in assessing regional clusters and policies for strengthening them.
Article
This paper analyses whether firms located in strong industrial clusters or regions are more likely to innovate than firms outside these regions. The study examines innovative activity using a database of innovations in the UK. The innovative record of 248 manufacturing firms during 8 years (1975–1982) is examined and related to employment in the region where they are located, and other variables. The results show that a firm is considerably more likely to innovate if own-sector employment in its home region is strong. On the other hand, the effect of strong employment in other industries does not appear to be significant. This may indicate that congestion effects outweigh any benefits that may come from diversification within clusters. The limitations of the data, however, do not allow for any definitive conclusion.
Book
Most writing on sociological method has been concerned with how accurate facts can be obtained and how theory can thereby be more rigorously tested. In The Discovery of Grounded Theory, Barney Glaser and Anselm Strauss address the equally Important enterprise of how the discovery of theory from data--systematically obtained and analyzed in social research--can be furthered. The discovery of theory from data--grounded theory--is a major task confronting sociology, for such a theory fits empirical situations, and is understandable to sociologists and laymen alike. Most important, it provides relevant predictions, explanations, interpretations, and applications. In Part I of the book, "Generation Theory by Comparative Analysis," the authors present a strategy whereby sociologists can facilitate the discovery of grounded theory, both substantive and formal. This strategy involves the systematic choice and study of several comparison groups. In Part II, The Flexible Use of Data," the generation of theory from qualitative, especially documentary, and quantitative data Is considered. In Part III, "Implications of Grounded Theory," Glaser and Strauss examine the credibility of grounded theory. The Discovery of Grounded Theory is directed toward improving social scientists' capacity for generating theory that will be relevant to their research. While aimed primarily at sociologists, it will be useful to anyone Interested In studying social phenomena--political, educational, economic, industrial-- especially If their studies are based on qualitative data.
Book
The underlying theme of this book is the impact of the increasing globalization of economic activity, and the advent of the knowledge-based economy, on the spatial distribution of economic activity, both between countries and within countries. More especially, it seeks to reconcile the paradox of 'slippery space', as demonstrated by the growing transnationalization of the production of goods and services, and that of 'sticky places' as shown by the increasing tendency for certain kinds of economic activity—and particularly knowledge- intensive activities—to be concentrated, or clustered, in limited spatial areas. These twin forces, both of which have been separately identified and extensively analysed in the literature, may be considered as opposite sides of the same spatial coin. In this book, they are viewed from the lenses of several scholarly disciplines, each of which is advancing understanding of one of the most significant trends of our day and age. The book is divided into four main parts. Part One first identifies the key analytical issues to be examined later, and then presents geographical, economic, and business perspectives of these. Part Two looks at the role of macroregions as units of spatial analysis. Part Three contains eight country studies. Part Four examines in more detail some of the policy implications of the subject matter dealt with in earlier chapters. The book is aimed at scholars and graduate students in the fields of business, economics, geography, and political science.
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Over the past decade, there has been growing interest in local industrial agglomeration and specialization, not only by economic geographers but also by economists and by policy-makers. Of the many ideas and concepts to have emerged from this new-found focus, Michael Porter's work on clusters has proved by far the most influential. His cluster theory has become the standard concept in the field, and policy-makers the world over have seized upon Porter's cluster model as a tool for promoting national, regional, and local competitiveness, innovation and growth. But the mere popularity of a construct is by no means a guarantee of its profundity. Seductive though the cluster concept is, there is much about it that is problematic, and the rush to employ cluster ideas has run ahead of many fundamental conceptual, theoretical and empirical questions. Our aim is to deconstruct the cluster concept in order to reveal and highlight these issues. Our concerns relate to the definition of the cluster concept, its theorization, its empirics, the claims made for its benefits and advantages, and its use in policy-making. Whilst we do not wish to debunk the cluster idea outright, we do argue for a much more cautious and circumspect use of the notion, especially within a policy context: the cluster concept should carry a public policy health warning.
Article
Incl. bibliographical notes and references, index, biographical note on the author
Article
This book traces the theoretical explanation for clusters back to the work of classical economists and their more modern disciples, who saw economic development as a process involving serious imbalances in the exploitation of resources. Initially, natural resource endowments explained the formation of nineteenth and early twentieth-century industrial districts. Today, geographical concentrations of scientific and creative knowledge are the key resource. But these require a support system, ranging from major injections of basic research funding, to varieties of financial investment and management, tothe provision of specialist incubators, for economic value to be realised. These are also specialised forms of knowledge that contribute to a serious imbalance in the distribution of economic opportunity.
Article
Industrial districts are seen as generating significant advantages in production and innovation. However, the way concentrations of firms actually relate to one another is often assumed. This paper draws on an international study into the opto-electronics industry to examine the extent and significance of localized inter-company trading and network relationships in six regions. National and international relationships are found to be much stronger than local ones. This is a function of customer and supplier markets, which derive from the technological characteristics of the industry and the way its markets have been created. Such factors are important for understanding the potential for the development of industrial districts in high technology sectors.
Article
Economic geography in an era of global competition poses a paradox. In theory, location should no longer be a source of competitive advantage. Open global markets, rapid transportation, and high-speed communications should allow any company to source any thing from any place at any time. But in practice, Michael Porter demonstrates, location remains central to competition. Today's economic map of the world is characterized by what Porter calls clusters: critical masses in one place of linked industries and institutions--from suppliers to universities to government agencies--that enjoy unusual competitive success in a particular field. The most famous example are found in Silicon Valley and Hollywood, but clusters dot the world's landscape. Porter explains how clusters affect competition in three broad ways: first, by increasing the productivity of companies based in the area; second, by driving the direction and pace of innovation; and third, by stimulating the formation of new businesses within the cluster. Geographic, cultural, and institutional proximity provides companies with special access, closer relationships, better information, powerful incentives, and other advantages that are difficult to tap from a distance. The more complex, knowledge-based, and dynamic the world economy becomes, the more this is true. Competitive advantage lies increasingly in local things--knowledge, relationships, and motivation--that distant rivals cannot replicate. Porter challenges the conventional wisdom about how companies should be configured, how institutions such as universities can contribute to competitive success, and how governments can promote economic development and prosperity.
Article
In recent years, the significance of geography among firms has declined due to the introduction of electronic methods of communication. However, with the increasing presence of the biotechnology industry, with its affiliated university-based scientists, the issue of geography is proposed as a significant issue for consideration. Most notably, researchers cite that the role of the scientist within the firm impacts the geographic proximity between the firm and the scientist. The types of links between scientists and firms are examined, drawing on a database of biotech firms that have issued IPOs. The data analyses indicate that firm proximity is often influenced not only by the scientist's role in the firm, but also by his or her status in the scientific community and by his or her age. Although past studies have cited the relationship between informal knowledge spillovers and proximity, the current research suggests that geographic proximity plays a less significant role when knowledge is transmitted through formal ties between scientists and corporations. Areas of future research are identified, including the impact of factors such as the proximity of other firm locations and research institutions, and how the role of geography differs between regions. (AKP)