Modelling inter-firm competitive  rivalry in a port logistics cluster: a case study of Melbourne, Australia

By: A. Singh, P. Chhetri, R. Padhye. The International Journal of logistics Management, DOI: 10.1108/IJLM-01-2021-0053, January 2022.

Abstract: “Purpose – The paper models the effect of spatial clustering on various dimensions of inter-firm competitive rivalry among port logistics firms using Porter’s five forces model. Design/methodology/approach – A survey-based quantitative approach is adopted to collect data from logistics firms, which are directly or indirectly dependent on the Port of Melbourne in Australia. A structural equation modelling (SEM) technique is used to examine the theorised relationships between various dimensions of inter-firm competitive rivalry and the tendency of spatial clustering of logistics firms in the vicinity of Port of Melbourne. Findings – The results indicate that the inter-firm competitive rivalry increases significantly when logistics firms are spatially clustered. This effect is further augmented when they cluster around the port. Co-location of firms near the port tends to increase “bargaining power of buyers”, whilst indirectly affecting “competitive rivalry” via “threats of substitutes”. This indicates that co-location enhances the bargaining power of buyers through the greater availability of substitute services that in turn promotes competitive rivalry among firms. However, co-location has an insignificant effect on “barriers to entry” and “bargaining power of suppliers”. Low entry barrier thus favours high competitive rivalry among firms. Hence, this paper validates the Porter’s cluster and five forces models that confirm the positive effect of port logistics clusters (PLCs) on bargaining power of buyers and indirect effect on competitive rivalry partially mediated through threats of substitutes. Practical implications – This study provides empirically grounded evidence for firms to evaluate co-location decision choices and help buyers and sellers to devise business strategies to enhance inter-firm competitive rivalry and bargaining power. Originality/value – This is the first systematic attempt to empirically validate Porter’s five forces model in the context of PLC. Furthermore, the conceptualisation of PLC concept both as spatial and functional constructs (i.e. dependency on port) is novel. This study thus has broadened the meaning of cluster from a geographic entity to a more useful functional construct to reflect inter-firm dependencies.” [ABSTRACT FROM AUTHORS]

Cooperation in a minimum-waste innovation  ecosystem: a case study of the Czech Hemp Cluster

By: J. Spicka. International Journal of Emerging Markets, DOI: 10.1108/IJOEM-08-2021-1189, January 2022.

Abstract: “Purpose – Innovation ecosystems face many environmental challenges. The literature review shows that innovation ecosystems accelerate innovation activity, but empirical studies have not provided enough case studies focusing on the minimum-waste business strategy as one aspect of the circular economy. Various forms of interaction between members occur in the innovation ecosystems, which determines the level of cooperation. This paper aims to show the structure and forms of cooperation in an innovation ecosystem using the Czech Hemp Cluster (CHC) and its surroundings and suggest research directions in the field of interaction between members in an innovation ecosystem. Although hemp is associated with the production and distribution of narcotics, it is a versatile plant supporting the minimum-waste business strategy. Design/methodology/approach – The research is based on a theoretical part of a literature review of major scientific articles on innovation ecosystems from 2016 to 2021. The case study of the CHC and the hemp ecosystem is based on qualitative research in the form of a content analysis of the mission of the cluster members. In addition to content analysis, the classic multidimensional scaling method and hierarchical cluster analysis were used to reveal ecological guilds. Findings – The case study highlighted the specific relationship between the cluster and the ecosystem. The cluster does not determine the ecosystem boundaries, but the ecosystem is a much broader system of cooperation and interaction between organisations. Clusters emerge after an ecosystem has existed for a particular time to coordinate collaboration and information between organisations and stakeholders. The analysis of the CHC revealed the specific role of non-profit organisations (NPOs) in the innovation ecosystem. NPOs are not engaged in primary functions in the value chain, but they provide supporting activities through coordinated networking, disseminating information on innovation, awareness-raising and stakeholder education. Compared to natural ecosystems, innovation ecosystems are typically characterised by higher forms of collaboration between members. Research  limitations/implications – An exciting opportunity for research on innovation ecosystems is the ecological guilds taken from natural ecosystems and whose identification can help define the boundaries of innovation ecosystems. An opportunity for further research is the comparison of NPO-based and government-based clusters playing a central role in developing innovation ecosystems. Regarding the problematic generalisability of the case study to the entire agricultural production, a challenge is a search for minimum-waste business models in agriculture characterised by the biological nature of production. Originality/value – Theoretical and empirical studies have not yet considered innovation ecosystems in the minimum-waste context to a sufficient extent. The paper builds on previous scholarly studies focusing on innovation ecosystems and, for the first time, discusses the role of NPOs in the innovation ecosystem. The CHC case study adds a suitable minimum-waste business model to the still very scarce literature on sustainable innovation ecosystems. The article discusses the purpose and forms of cooperation in an innovation ecosystem, identifies a complementarity of roles in the innovation cluster and describes the interrelationship between the cluster and the ecosystem. Discussion of the ecosystem leader in the cluster-based innovation ecosystem shows the differences between Czech, Polish and German life science ecosystems.” [ABSTRACT FROM AUTHOR]

Sustainable development early  warning and financing risk management of resource-based cluster using  optimization algorithms

By: Y. Wang, W. Xue. Journal of Information management, DOI:10.1108/JEIM-03-2021-0152, January 2022.

Abstract: “Purpose – The purpose is to analyze and discuss the sustainable development (SD) and financing risk assessment (FRA) of resource-based industrial clusters under the Internet of Things (IoT) economy and promote the application of Machine Learning methods and intelligent optimization algorithms in FRA. Design/methodology/approach – This study used the Support Vector Machine (SVM) algorithm that is analyzed together with the Genetic Algorithm (GA) and Ant Colony Optimization (ACO) algorithm. First, Yulin City in Shaanxi Province is selected for case analysis. Then, resource-based industrial clusters are studied, and an SD early-warning model is implemented. Then, the financing Risk Assessment Index System is established from the perspective of construction-operation-transfer. Finally, the risk assessment results of Support Vector Regression (SVR) and ACO-based SVR (ACO-SVR) are analyzed. Findings – The results show that the overall sustainability of resource-based industrial clusters and IoT industrial clusters is good in the Yulin City of Shaanxi Province, and the early warning model of GA-based SVR (GA-SVR) has been achieved good results. Yulin City shows an excellent SD momentum in the resource-based industrial cluster, but there are still some risks. Therefore, it is necessary to promote the industrial structure of SD and improve the stability of the resource-based industrial cluster for Yulin City. Originality/value – The results can provide a direction for the research on the early warning and evaluation of the SD-oriented resource-based industrial clusters and the IoT industrial clusters, promoting the application of SVM technology in the engineering field.” [ABSTRACT FROM AUTHORS]

Are clustering and R&D institutions in post-socialist  states functional tools for sustainable development?

By: A. Mempel-Sniezyk, P. Hlavacek. European Planning Studies, DOI: 10.1080/09654313.2021.2013779, December 2021.

Abstract: “This paper explores the process of achieving sustainable development at a regional level in post-socialist states in the context of the clusters concept. In spite of the research on how it is achieved in particular countries, it remains under-researched or the results are in conflict. We consider if qualitative parameters of regions, the complex process of dependence between R&D financing in regions, whether the policies implemented in the development processes of post-socialist countries are important for the greater development of clustering and the higher concentration of clusters. The empirical analysis is based on Spearman’s ρ rank correlation and the stepwise regression analysis. We find that dependencies between the functioning of clusters and selected factors of the sustainable and qualitative development of regions were confirmed. The research shows that the expected effects are not clear, albeit that such policies resulted in a change in the direction of the activities, and that better performance can be expected by taking directional measures. Overall, our findings confirm the expected dependencies of involving public financing on R&D and clusters in regions. We find that the policies implemented in the post-socialist states do not necessarily involve large-scale permanent environmental improvement.” [ABSTRACT FROM AUTHORS]

Detection of geographical clustering:  cultural and creative industries in Barcelona

By: L. Maddah, J. M. Arauzo-Carod, F. A. Lopez. European Planning Studies, DOI: 10.1080/09654313.2021.2020218, December 2021.

Abstract: “Creative clusters are increasingly being recognized as vital tools in the promotion of the competitiveness, innovation, urban development, and growth of cities in developed countries. This paper studies the geography of Cultural and Creative Industries (CCIs) in Barcelona (Spain) for the years 2009 and 2017. We investigate the spatial distribution of firms using the Scan methodology, which identifies the localization of clusters and assigns them statistical significance. Our findings indicate that CCIs are not located haphazardly— they tend to cluster in and around Barcelona’s prime districts. The evolution of the clusters over these nine years reveals distinct patterns of clustering among the twelve CCI sub-sectors. The mature clusters in Barcelona’s core tend to have greater growth and enhanced transformation capabilities. Our results can guide CCI cluster policy, taking into account the specificity of each sub-sector. In addition, they can direct place-based development strategies, creative urban and rural planning, and restructuring in a polycentric context.” [ABSTRACT FROM AUTHORS]

Entrepreneurial opportunity and related specialization in  economic ecosystems

By: P. Auerswald, L. Dani. Research Policy, DOI: 10.1016/j.respol.2021.104445, December 2021.

Abstract: “Entrepreneurial ecosystems are most often defined as locally bounded networks of institutions and individuals that help entrepreneurs to identify and exploit market opportunities. However, a prerequisite of the ability to exploit an entrepreneurial opportunity is the existence of the opportunity to begin with. In this paper, we propose an approach to representing how entrepreneurial opportunities are embedded in a regional economy. The central methodological contribution of our paper is to introduce the concept of related specialization, which we define as the concentration of high interdependencies between specialized industries within a metropolitan region, relative to the national level of concentration. We find that related specialization is positively correlated with entrepreneurial outcomes across U.S. metropolitan areas. We use related specialization to make a first attempt at representing the trophic structure of an economic ecosystem. In a biological ecosystem, the trophic structure refers to energy-transfer relationships between different species. As introduced in this paper, we propose the analogy that, in an economic ecosystem, the trophic structure may be mapped in terms of the supply-chain relationships between industries within a region. We argue that these analytic tools can help policymakers more readily understand the opportunities that are imminently available to entrepreneurs in their local environments.” [ABSTRACT FROM AUTHORS]

Exploring the scope of regions in challenge-oriented  innovation policy: the case of Schleswig-Holstein, Germany

By: R. Hassink, H. Gong, K. Frohlich, A. Herr. European Planning Studies, DOI: 10.1080/09654313.2021.2017857, December 2021.

Abstract: “Recently, challenge-oriented innovation policy has become increasingly popular in political and scientific discussions. However, the extent to which such a challenge-based thinking has entered regional policy making is relatively unclear. This paper examines the scope of the regional level in promoting challenge-based innovation, focusing on the recent renewable energy innovation policy in Schleswig-Holstein, Germany. The results show that while regional innovation policy in Schleswig-Holstein aims to address several structural and transformational systemic failures, many other problems and challenges remain, as they are beyond the capacity of a single region to address. Based on this analysis, we draw four conclusions. First, similar to many other structurally weak regions, policymakers in Schleswig-Holstein are struggling with some of the same key challenges that the policy was originally designed to address. Second, multi-scalar governance and inter-scalar coordination are essential for managing regional sustainability transitions. Third, challenge-driven innovation policy is an extension of, rather than a replacement for, conventional regional innovation policy. Finally, environmental and economic goals should be well balanced in challenge-driven regional innovation policy design.” [ABSTRACT FROM AUTHORS]

The interplay of strategies and knowledge for competitive  advantages in a medium low-tech industrial cluster located in an emerging  country

By: M. Ferasso, A. Sulich, G. Duran-Romero, A. Stando. In International Journal of knowledge  Management Studies, Vol.13, No 1, 2022.

Abstract: “This research explored how strategies and knowledge are used within a medium low-tech industrial cluster to achieve competitive advantages. Firstly, a meta-bibliographical survey of literature was conducted to find theoretical gaps; secondly, an empirical case study was analysed. The dataset comprises collected interviews, several documentation and non-participating observations. Data was analysed through categorisation technique, after being reduced, prioritised and synthetised. Main findings revealed that the cluster' companies implemented adaptive strategies, according to Chaffee's typology and differentiation strategies, according to Porter's, by outsourcing R&D of each inner company to a specialised partnered research centre. This cluster is characterised with strong tendencies of coopetition, trusted relationships, and planning of conjoint activities to provide and to share learning, effective combination of resources in strategic communities, and profiting from economic efficiency. The main strategic knowledge is considered the consumer market rather than secrets, patents or intellectual properties. Knowledge related to specific expertise is the second key strategic asset that allows competitive advantages to cluster's companies. This research represents a first attempt to understand industrial dynamics regarding the strategy and knowledge interplay in a context of medium low-tech clusters. Practical implications for cluster governances, policymakers and scholars are addressed.” [ABSTRACT FROM AUTHORS]

Urban Chemical Industry Cluster Area Restructuring and  Determinants: A Case Study of a Typical Old Industry Area Along the Yangtze  River, China

By: Z. Hui, D. Xuejun, J. Tingting. Chinese Geographical Science, DOI: 10.1007/s11769-022-1267-3, January 2022.

Abstract: “China is in a transitional period between urban renewal and industrial change. In this period, the focus has been on the suburbanization of enterprises and land transformation in old industrial areas, particularly areas with chemical industries. A life cycle theoretical framework was established to develop chemical industrial zones in the context of urban expansion and land function conversion. The long-term historical processes and mechanisms that transformed a typical old chemical industry area along the Yangtze River, Yanziji Area of Nanjing City were unveiled and comparatively analyzed. The study found that the entire life cycle of the case study area was formed through the combined action of different influencing factors. Traditional industrial location factors played important roles during the rise and continuity of the chemical industry zone, while unconventional environmental regulations and government policies drove its decline and transformation. In the transformation of the old chemical zone, the renewal and redevelopment of industrial land into higher-value residential land is a key link determining the feasibility of government fund compensation and the circulation of capital. These findings demonstrate that regional control and environmental regulation play crucial roles in determining the location of polluting industries and the renewal of urban industrial areas. This research enhances the understanding of the development history and reconstruction of chemical industry clusters and plots within megacities at a finer geographic scale.” [ABSTRACT FROM AUTHORS]