No abstract

No abstract

Purpose – There are contradicted perspectives on relationship between geographic cluster and competitive advantage of firms in previous research. Extant research has paid extremely attention to the effect of both geographic cluster and industrial network on firms’ performance; however, little studies have delineated the relationship between geographic cluster, industrial network, and competitive advantage. The purpose of this paper is to demonstrate that firms within the same cluster that have established idiosyncratic network resources have stronger competitive advantages than firms that have not. Design/methodology/approach – An empirical study of two prominent geographic clusters from Taiwan is analyzed by structural equation modeling. Findings – The results indicate that the degree of networking does play a mediating role between geographic cluster and competitive advantage, which may help resolve the conflicting results obtained by researchers on the influence of clusters on competitive advantage. The results also find that both degree of networking and betweenness position are conducive to the pursuit of competitive advantage. Practical implications – The research shows that firms merely locate themselves in the right cluster does not guarantee they can outperform their rivals. Rather, developing of network relationship with other firms proximate to the same cluster will strengthen a firm's competitive advantages. Originality/value – In the theoretical perspective, this paper attempts to fill the gap in the links between clusters, networks, and competitive advantage by providing that the networking as a mechanism for firms in a cluster to improve their competitive advantage.

No abstract

In the industrial environment, individual enterprises survive by obtaining specific resources. Niche theory uses adaptations of the organizational niche and the environment to explain the survival opportunities of generalist and specialist organizations. However, it does not explain in depth the key to the sustainable development of many enterprises with poor conditions, which have productive social relationships and can obtain the resources that are needed for sustainable development from these relationships. In this study, 106 valid questionnaires were obtained through e-mail. Taiwanese firms investing in China were taken as the enterprise groups, and SPSS statistical software was used to test the empirical relationships among niche characteristics, network relationships, and enterprise performance. The research draws the following conclusions. (1) When the external environment changes unfavorably, the financial performance of firms with a high degree of network embeddedness and large niche width is poorer than that of firms with a low degree of network embeddedness. (2) When the external environment changes unfavorably, the financial performance of firms with a low degree of network centrality and high niche specificity is better than that of firms with a high degree of network centrality. These results can provide suggestions for management theory and practice.