Industrial clusters in the developing economies: Insights from the Iranian carpet industry

Abstract

Industrial clusters are perceived as potential drivers of small and medium‐sized enterprises development and efficient policy instruments to lead national and regional innovation and growth. However, these clusters in developing economies are typically placed in complex environments that impose a mix of serious challenges that adversely affect their overall performance. Therefore, this study aims to analyze the nature of these challenges and understand their dynamics using a case study of a carpet industry cluster in Iran. Using multiple sources of evidence, the study reveals two distinct, yet interrelated, levels of challenges: micro and macro. Under each level, a number of key dimensions were identified and theoretically linked which helped to conceptualize the structure of these challenges and model their dynamics.

Adaptive learning in cross-sector collaboration during global emergency: conceptual insights in the context of COVID-19 pandemic

“…would perceive their working systems as incompatible (Saadatyar et al, 2020). Thus, failure to tackle these differences can seriously undermine the interaction and communication, that underpin collective learning-adaptation endeavor, as partners would lose their relational capital-that is much needed to maintain trust and commitment within the relationship (Luo, 2020).…”

“…In effect, cross-sector collaboration brings together organizations from two sectors or more that are inherently different due to their diverse ideologies, institutional logic, business models, motives, culture and value systems (Selsky and Parker, 2005). These discrepancies can complicate the collaboration process as partners would perceive their working systems as incompatible (Saadatyar et al, 2020). Thus, failure to tackle these differences can seriously undermine the interaction and communication that underpin collective learning-adaptation endeavor, as partners would lose their relational capital that is much needed to maintain trust and commitment within the relationship (Luo, 2020).…”

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“…Meanwhile, as the literature emphasizes, social capital is a necessary condition to unleash the innovative potentials in clusters and other networks of enterprise connections. Sharing information, knowledge, and ideas requires trust (Hoffman, 2014;Lai et al, 2014;Garcia-Villaverde et al, 2017;Saadatyar, Al-Tabbaa, Dagnino, & Vazife, 2019) and these structures become dysfunctional without this element, leading to failure in meeting expectations or fulfilling tasks. As emphasized by Chen, Haga, and Fong (2016), the lack of social capital means that the cooperation structures created are usually short-lived, because social capital is a kind of "glue" that holds them together.…”

“…That is also because the results on the formation and development of effective links within clusters have not been optimistic. It has been firmly identified that the mere creation of a cluster does not release its innovative potential (Saadatyar et al, 2019). To make it happen, it is necessary to reach an openness to establish cooperation with all its actors, including competitors.…”

“…Its course is influenced by many factors with characteristics pertaining to both external and internal conditions (Daniluk, 2019). Among many effective factors which are investigated by many studies, the literature has highlighted the inter-firm trust as one of the most important factors (Wasiluk, 2018a;Saadatyar, Al-Tabbaa, Dagnino, & Vazife, 2019).…”