Trajectory Dependence, Lock-In Effect, and Cluster Decline: A Case Study of the Footwear Cluster in Sinos-Paranhana Valley

Schmidt, V.; Santos, Diego Alex Gázaro dos; Zen, Aurora Carneiro; Bittencourt, Bruno Anicet; Belussi, Fiorenza

doi:10.1080/10978526.2020.1770607

Cited by 7 publications

(9 citation statements)

References 39 publications

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“…Previous studies identified the lack of export competitiveness of the cluster (Schmitz, 1999) and the lock-in effect (Schmidt et al , 2020). This paper complements the previous studies as it analyses the 20-year trajectory of different indicators of the footwear sector in RS, enabling an analysis of the decline trajectory that culminates in the current reality of the sector (meso-level).…”

Section: Discussion and Final Remarksmentioning

confidence: 99%

“…Schmitz (1999) analysed the reality of the sector until the end of the 1990s and pointed out some difficulties of the sector to upgrade and continue its growth process. Furthermore, Schmidt et al (2020) present a current study that analysed the decline trajectory of the sector from the perception of local actors (micro-level)[4].…”

Section: Discussion and Final Remarksmentioning

confidence: 99%

“…The second factor is that RS footwear firms are locked in a productive and market logic that has become outdated, hindering a change in the cluster's trajectory (Schmidt et al , 2020). The lock-in mentioned concerns a footwear production growth in RS that was carried out in a very specific way of participation in the global value chain.…”

Section: Discussion and Final Remarksmentioning

confidence: 99%

“…Since the mid-2000s, the cluster has lost its dynamism. Schmidt et al (2020), for example, discussed the decline of the cluster in relation to a lock-in process by analysing the micro-level (firms).…”

Section: Introductionmentioning

confidence: 99%

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Footwear cluster’s decline in the South of Brazil: the transformation of a supercluster

Ruffoni

García

Roehrig

2022

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Purpose This paper presents an empirical contribution to the literature on cluster evolution, highlighting the decline phase. The analysis focuses on the footwear sector in Rio Grande do Sul (RS) state, in southern Brazil, where an important footwear cluster is located, which was once considered one of the world's largest footwear clusters. The purpose of this study is to analyse the transformation of this footwear industrial sector since the beginning of the 2000s using several sectoral statistics. Design/methodology/approach This paper presents an empirical and longitudinal study that comprises the sourcing of 20 years of secondary data, based on official sources. The main data analysed were production, price, industrial structure, labour market and foreign market. Findings The main results indicated a significant reduction in production, export and employment. In addition, a precarization of the labour market was observed, with lower wage levels, even with an increase in the formal qualification of labour over time. The finding is that the RS footwear sector underwent a huge structural change and lost the status of a worldwide supercluster. This decline occurred due to two central factors: an external shock related to China's entry into the international and Brazilian domestic markets, accompanied by a slowdown in the Brazilian economy since 2015; and the difficulty of local firms responding to the new challenges. Research limitations/implications Synthesizing the findings, it is understood that this paper contributes to registering the trajectory of decline over time of the footwear sector in RS. In this sector, the Sinos Valley cluster is located, historically known as a footwear producing and exporting supercluster. This cluster loses the characteristic of a “supercluster”, but it still remains an important footwear cluster in Brazil. Therefore, this study reinforces the existence of fragilities already pointed out by the literature in Schimtz (1999) and, more recently, in Schmidt (2020). The need to address a set of fragilities remains current, both at the micro- and meso-levels. This is key to reversing the decline trajectory of the cluster and the sector. Moreover, as recent studies on clusters point out, one still must think about the impact of another ongoing paradigmatic transformation concerning the use and development of Industry 4.0 technologies. Thus, the central challenge is to think about and implement new public and private policies. The historical, economic and social relevance of the sector and the cluster demand efforts to reverse the decline. Originality/value This study focuses to contribute to the discussion about the decline of the footwear production in the region by analysing secondary data regarding the industrial sector. This is an analysis at the meso-level (industry). The authors understand that the originality of the research lies in the longitudinal analysis for a recent period (past 20 years) that captures the greatest current crisis experienced by the region.

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Section: Discussion and Final Remarksmentioning

confidence: 99%

Section: Discussion and Final Remarksmentioning

confidence: 99%

Section: Discussion and Final Remarksmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Footwear cluster’s decline in the South of Brazil: the transformation of a supercluster

Ruffoni

García

Roehrig

2022

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“…However, while EEG has offered elaborated explanations for understanding the success stories of regional industrial path development, limited attention has been given to failures and dark phases of path development processes (Blažek et al, 2019;Phelps et al, 2018). Analyses of such negative paths generally focus on difficulties of diversification of sunset industries in old industrial regions (Cho & Hassink, 2009;Schmidt et al, 2020), while other types of failed path development processes are less studied. Further, while Binz et al (2016b) suggest that path development processes require multiple resources, in particular knowledge, markets, financial investments and legitimacy, failure cases generally emphasize deficiencies in competencies and skills as a key explanatory factor (e.g., Isaksen, 2015Isaksen, , 2018.…”

Section: Introductionmentioning

confidence: 99%

Industry legitimacy: bright and dark phases in regional industry path development

Jolly

Hansen

2021

Regional Studies

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The paper contributes to debates on dark phases of regional industry path development processes. We focus on the role of industry legitimacy and study legitimacy spillovers from contextual structures in the case of the biogas industry in Scania, Sweden. Previously presented as a success case, we show how legitimacy spillovers from various contextual structures influenced the path development process, in both the emergence and acceleration phases, and in the recent decline period. The analysis highlights how previously accumulated resources in the form of knowledge, finance and market were insufficient to prevent industry decline when it suffered a loss of legitimacy.

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How to Be More Innovative in Clusters? The Influence of Geographical Agglomerations on Its Firms

et al. 2022

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Trajectory Dependence, Lock-In Effect, and Cluster Decline: A Case Study of the Footwear Cluster in Sinos-Paranhana Valley

Cited by 7 publications

References 39 publications

Footwear cluster’s decline in the South of Brazil: the transformation of a supercluster

Footwear cluster’s decline in the South of Brazil: the transformation of a supercluster

Industry legitimacy: bright and dark phases in regional industry path development

How to Be More Innovative in Clusters? The Influence of Geographical Agglomerations on Its Firms

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