Knowledge interactions isomorphism and innovation performance of firms in industrial clusters

Abstract

Among the various strategies for regional entrepreneurial development, industrial newlinecluster development programs bear greater significance. An industrial cluster is a newlinegeographic concentration of interconnected businesses, suppliers and other related newlineinstitutions in a particular field. It is defined as a geographically proximate group of firms newlineand associated institutions in related industries, linked by economic and social newlineinterdependences (Porter, 1998). newlineThe broader objective of the present study is to explore how firm s involvement in newlineindustrial cluster activities and subsequent knowledge interactions help them achieve newlineinnovation performance. Grounded on the theories such as population ecology theory, newlinesocial conformity theory, social contagion theory and knowledge-based view of the firm, newlinethe study attempts to propose and test a comprehensive theoretical framework to explain newlinehow the degree of involvement in cluster activities influence the innovation performance newlineof small firms located in cluster ecosystems. The model investigates the relationship newlinebetween a firm s industrial cluster involvement and its incremental innovation newlineperformance through the intermediate processes of organisational isomorphism and newlineorganisational learning. newlineTo test the proposed theoretical model, data were obtained through survey method newlineemploying structured questionnaires. Data were collected from 496 footwear newlinemanufacturing firms located in major footwear clusters of India such as Agra, Kolkata, newlineChennai and Calicut. Data were subjected to demographic analysis and mediation analysis newlineusing SPSS and Process Macro, and structural equation modelling using AMOS. newline