Formation and dissolution of inter-firm linkages in lengthy and stable networks in clusters

Abstract

Firms aspire to take advantage of technical and business networks through interorganizational interactions in order to improve performance. Consequently, researchers are increasingly attracted by the dynamics and implications of network formation at both local and global levels.From another perspective, authors have abandoned a monotonic effect and simplistic approach to proximity, as it emerges as a complex and multidimensional notion.Using data from a foodstuffs cluster located in the Valencia region (Spain) and advanced econometric methods, this paper aims to shed light on the detrimental effects and complementarities that may arise among the proximity dimensions. After controlling for network endogenous forces and firm characteristics, our findings reveal the effect of proximity dimensions on the creation of linkages in advanced stages of the cluster life cycle, in addition to the interactions among them.

Transitioning from an economic cluster to a collaborative community: mining projects in Greenland

“…Inter-organizational relationships, collaboration, in clusters depend on five proximity dimension: cognitive, social, institutional, organizational, and geographical (Belso-Martinez, 2016;Molina-Morales et al, 2015;Boschma, 2005). Studies provide evidence of proximities' influence on the formation of inter-firm linkages in clusters (Belso-Martinez, 2016;Molina-Morales et al, 2015).…”

“…Studies provide evidence of proximities' influence on the formation of inter-firm linkages in clusters (Belso-Martinez, 2016;Molina-Morales et al, 2015). They are context specific and depend on the stage of the life-cycle of the cluster (Belso-Martinez, 2016).…”

“…Common interpretive schemes are needed in order to understand each other, communicate meaningfully, and generate knowledge (Boschma, 2005). Limited cognitive proximity can lead to misunderstandings and impede performance, whereas too close cognitive proximity may reduce inter-firm knowledge exchange and learning opportunities (Belso-Martinez, 2016;Molina-Morales et al, 2015).…”

“…Trust emerges from frequent meetings and face-to-face interactions, which leads to cooperative behavior. This is linked to geographical proximity (Molina-Morales et al, 2015). However, a high level of social proximity may underestimate opportunistic behavior (Boschma, 2005).…”

“…Firms within clusters do form linkages. Collaboration and linkages between organizations in clusters are influenced by five proximity dimensions: geographical, social, cognitive, organizational, and institutional (Belso-Martinez, 2016;Molina-Morales et al, 2015;Boschma, 2005). Limitation and excess of proximity may prevent successful inter-organizational linkages (Boschma, 2005).…”