The Performance of Seaport Clusters - RePub - Erasmus Universiteit ...
The Performance of Seaport Clusters - RePub - Erasmus Universiteit ...
The Performance of Seaport Clusters - RePub - Erasmus Universiteit ...
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13.4 Internal competition in clusters<br />
<strong>The</strong> <strong>Performance</strong> <strong>of</strong> <strong>Seaport</strong> <strong>Clusters</strong><br />
<strong>The</strong> results <strong>of</strong> the case studies confirm the importance <strong>of</strong> internal competition for cluster<br />
performance, as emphasized by Porter (1990) and Baptista (1999). In this study, the<br />
mechanisms that explain the positive effects <strong>of</strong> internal competition were studied. Three<br />
mechanisms were identified. All three mechanisms (monopoly rents, specialization and the<br />
vibrant environment) were found to be relevant in practice. This is an important conclusion,<br />
since the issue <strong>of</strong> internal competition is generally linked to the threat <strong>of</strong> monopoly power.<br />
<strong>The</strong> case study results show that internal competition has positive effects apart from<br />
preventing the abuse <strong>of</strong> market power. Since internal competitors have similar cost<br />
functions, they have strong incentives to specialize (to reduce competition). This also<br />
triggers innovation. Both effects are beneficial for the performance <strong>of</strong> a cluster. In this sense,<br />
it could be claimed that internal competition is most beneficial when it can lead to an<br />
‘oligopoly’ with specialized service providers and less beneficial when it leads to cut-throat<br />
competition, on top <strong>of</strong> the competition with firms outside the cluster.<br />
13.5 <strong>The</strong> role <strong>of</strong> leader firms in clusters<br />
<strong>The</strong> concept ‘leader firm’ was incorporated in the framework for analyzing the performance<br />
<strong>of</strong> clusters. <strong>The</strong> leader firm concept is relatively new and not well studied. Leader firms are<br />
defined as ‘firms with both the ability and the incentives to make investments with positive<br />
external effects for other firms in the cluster’.<br />
<strong>The</strong> case studies demonstrate that the leader firm concept contributes to the understanding<br />
<strong>of</strong> governance in clusters. <strong>The</strong> experts acknowledge the positive influence <strong>of</strong> leader firms on<br />
the performance <strong>of</strong> a cluster and they judge leader firms as important for the performance <strong>of</strong><br />
the cluster. Evidence from the three cases shows the role leader firms can play.<br />
Furthermore, the analysis <strong>of</strong> collective action regimes shows the difficulties that arise when<br />
leader firms are absent. <strong>The</strong>se results justify the conclusion that a special set <strong>of</strong> firms in<br />
clusters can have a substantial impact on its performance. <strong>The</strong>se firms can be termed<br />
leader firms.