Cluster dynamics and firms’ strategies – an integrative framework

Ostapenko, Svitlana; Africano, Ana Paula; Meneses, Raquel

doi:10.1108/emjb-01-2022-0014

Cited by 3 publications

(10 citation statements)

References 90 publications

(240 reference statements)

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“…External factors, such as entering the EC community and further integration into the EU, have boosted the creation of new enterprises due to the flexibility in the legislative framework and provided financing for the cluster. Furthermore, the role of agency in the form of institutions for collaboration (both public and private) and firms' strategic choice toward diversification of their activities and subsequent internationalization has provided new trajectories that delocked cluster from its declining dominant industry, highlighting the importance of the diversification and internationalization strategies for the path's development following suggested framework by Ostapenko et al (2022). These findings represent relevant information to adapt policies and the firm's strategies accordingly.…”

Section: Douro Wine Clustermentioning

confidence: 90%

“…Furthermore, expanding qualitative dimension of the model of the Menzel and Fornahl (2010) and Ostapenko et al (2022) proposed the analysis of parameters of cluster brand/ Douro wine cluster identity, innovation, network, policies and include the analysis of external markets. Additionally, taking into account contributions provided by Martin and Sunley (2011) and Harris (2021) it also incorporates path development logic.…”

Section: Theoretical Framework 21 Cluster Life Cyclementioning

confidence: 99%

“…Therefore, cluster dynamics is considered following Ostapenko et al (2022) as a possible passage through the path’s emergence (emergence stage), path’s development (growth stage), path’s sustainment (maturity stage), path’s decline (decline stage) and path’s transformation (renewal stage) (Figure 1). In this graphical representation horizontal axe represent time, and vertical one is an aggregated representation of growth in the density of the shared perceptions on cluster identity/brand; pf number of firms and employees; of innovations; appearing (increase) of policies and regulations; and external markets – exports/FDI increase.…”

Section: Theoretical Frameworkmentioning

confidence: 99%

“…Additionally, taking into account contributions provided by Martin and Sunley (2011) and Harris (2021) it also incorporates path development logic. However, in Ostapenko et al (2022) proposed seven parameters of cluster evolution (cluster identity/brand; number of firms; number of employees; network; innovation; policies and regulations; and external markets – exports) and frames them into the Model of CLC stage/path identification. Without providing a theoretical foundation for the proposed model and most importantly, this model has not been supported empirically.…”

Section: Theoretical Frameworkmentioning

confidence: 99%

“…Thus, based on the literature review, the model of Ostapenko et al (2022) model is further developed; namely, literature has been organized (Table 1); the parameters have received a theoretical grounding (Table 2); and descriptions of the parameters in the model have been further extended and authors corrected in the model for CLC path’s identification (Table 3). Subsequently, the model is applied to a specific case study.…”

Section: Theoretical Frameworkmentioning

confidence: 99%

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New growth of the Douro wine cluster

Ostapenko,

Africano,

Meneses

2024

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Purpose This study aims to further develop the CLC stage/path’s identification model that distinguishes between path’s emergence (emergence stage), path’s development (growth stage), path’s sustainment (maturity stage), path’s decline (decline stage) and path’s transformation (renewal stage), and by applying it, define the current stage/path of the Demarcated Douro Region (DDR) cluster. The Port wine industry, which is the dominant industry of the DDR cluster, is at the maturity/decline stage – is the same for the cluster itself? Design/methodology/approach It is a case study with a longitudinal perspective based on the analysis of the dynamics of the parameters of cluster evolution using available secondary sources (cluster identity/brand; number of firms; number of employees; network; innovation; policies and regulations; and external markets – exports), especially addressing the past decade, that represent the stage of maturity/decline of the cluster’s dominant Port wine industry. Findings The conclusion is that since the 1990s the Demarcated Douro Region has gone through a “path transformation” where during the following 20 years new “anchors” for the cluster were gradually introduced, such as Doc Douro Wines, new forms of consumption of Port wine, tourism and olive oil. Since 2010 the cluster has entered a growth stage/(new) path’s development, where these “anchors” are in steady growth. The Douro brand is becoming more internationally recognized and established, the number of firms and employees is increasing, the network is restructuring with the creation of cluster-specific official institutions, innovation is especially reflected with increasing heterogeneity through diversification of the clusters into new activities and regulations and policies are supportive for expansion – all these parameters are indicating the rise of the new cycle for the cluster. Thus, the DDR cluster represents an attractive business environment and requires attention from regional policymakers to support the cluster’s development. Especially institutions have been highlighted as internal factors driving clusters growth, European integration as an external factor and firms’ strategies of diversification and internationalization as an appropriate de-locking mechanism for new path’s development. Research limitations/implications This research contributes to the CLC theory by further developing and applying a CLC stage/path identification model. It provides a better understanding of the dynamics of the DDR cluster that diverge from its dominant industry life cycle, which is relevant for regional policies and firms’ strategies. This study has its limitations. It provides an exploratory application of the theoretical framework proposed, and consequently, no general conclusions are possible yet. More empirical studies with different clusters in different stages are necessary to test the framework. Practical implications These findings are useful to policymakers when designing their policies for cluster development but also for clusters’ entities and actors when making their strategic decisions as it allows based on the verification of the established parameter of CLC to identify its current stage/path of development. Originality/value The paper presents a theoretically grounded model for CLC identification and for the first time to the best of the authors’ knowledge applies it to a cluster case – the DDR cluster. This case applies the proposed model and illustrates its usefulness. The model provides the tools for a better understanding of cluster dynamics.

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Section: Douro Wine Clustermentioning

confidence: 90%

Section: Theoretical Framework 21 Cluster Life Cyclementioning

confidence: 99%

Section: Theoretical Frameworkmentioning

confidence: 99%

Section: Theoretical Frameworkmentioning

confidence: 99%

Section: Theoretical Frameworkmentioning

confidence: 99%

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New growth of the Douro wine cluster

Ostapenko,

Africano,

Meneses

2024

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Nashville: The Creative Business Cluster and its Life Cycle

Hodges

2023

International Journal of Music Business Research

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Nashville, Tennessee, otherwise known as Music City, exhibits the characteristics of what has been called a creative business cluster that is centred around the business of country music. The presence of major record labels in the city devoted to the genre of music has created career opportunities for various types of music professionals as well as a community where there is a sense of camaraderie and cooperation among competitors. The community's success has bolstered the local economy due to the successes of the genre of music as well as the tourism country music has brought to the city. Business clusters have been shown to have life cycles that include the emerging phase, growing phase, sustaining stage and declining phase. This study utilises research from the literature on business clusters and their life cycles, along with the literature gained from the interviews of workers within the market, to determine where Music City currently lies along its creative cluster life cycle.

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Pathways to Prosperity: Navigating Post-Stagnation Growth and Revitalizing Business

Spitsin,

Vuković,

Ryzhkova

et al. 2024

Economies

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This study examines the ways in which firms recover from stagnation or sales decline, with a focus on two key aspects: traditional high-growth companies and growth restarts within the framework of organizational life cycle theory. Analyzing a dataset of 1883 Russian firms from 2013 to 2021, this research employs logistic regression to identify factors that promote growth. These factors include the youth of the firm, investment intensity, and significant sales drops during periods of stagnation. The study introduces a new economic category, termed ‘restarting growth’, which signifies a firm’s sustained expansion following an extended period of stagnation. This category is crucial for identifying factors that increase the likelihood of a company transitioning to growth after prolonged stagnation or production downturn. The findings of this study reveal that firms that are younger, invest more intensively in fixed capital, and have experienced a larger sales drop during a period of stagnation are more likely to transition to growth. These results are juxtaposed with the growth factors characteristic of traditional high-growth companies, as well as with the theoretical approaches explaining growth restarts within the framework of organizational life cycle theory. Such distinctions are pivotal both for academic understanding and practical applications in discerning how companies rebound from crises. Moreover, the research identifies several highly significant factors—indicators that can assist investors in selecting promising firms for financing.

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Cluster dynamics and firms’ strategies – an integrative framework

Cited by 3 publications

References 90 publications

New growth of the Douro wine cluster

New growth of the Douro wine cluster

Nashville: The Creative Business Cluster and its Life Cycle

Pathways to Prosperity: Navigating Post-Stagnation Growth and Revitalizing Business

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