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Chapter 5 – Cluster Structure 49 variety in a cluster. First, diversity of capabilities enhances the opportunities for cooperation in the cluster. A diverse cluster is a ‘fertile’ environment for new alliances. In a relatively homogeneous cluster, firms are more likely to develop alliances with actors outside the cluster and such external linkages do not (or to a lesser extent) generate positive effects for firms in the cluster. Second, clusters with a diverse population are less vulnerable for external shocks. Changes (technological, managerial, or social) affect some firms negatively, while others benefit from changes. Such winners do not necessarily have superior strategies and capabilities, but can also incidentally be well positioned to react to changes. The likeliness of the presence of ‘winners’ is larger in a diverse cluster. This argument for the positive effect of variety on performance is termed ‘Fisher’s Principle’ by (some) evolutionary economists (see Metcalfe, 1994, p. 64). A third argument for the positive effect of variety on performance is that diversity enhances opportunities for innovation. Diversity is an important source of ‘Schumpeterian new combinations’ (Nelson, 1994). More diversity leads to a more diverse information and knowledge base, which promotes innovation. Even though the importance of diversity is widely shared, the issue of measuring diversity and its effects on performance has hardly been addressed. With regard to clusters, studies of the importance of heterogeneity are lacking: As research on industrial districts enters a more mature phase, exploring the internal heterogeneity further seems a critical next step (Rabellotti and Schmitz, 1999, p. 106). 5.4.2 Dimensions of firm heterogeneity Firm heterogeneity can be measured on a large number of dimensions. Three relatively unambiguous firm dimensions that can in be analyzed relatively easy are ‘economic activity’ ‘size’ and ‘international scope’. The presence of firms engaging in different activities makes a cluster less vulnerable for external shocks, and provides a fertile environment for ‘new combinations’ and cooperation. The three arguments discussed above also apply to diversity of size. Large and small firms are in general complementary. Small firms are more flexible and co-operate relatively
50 The Performance of Seaport Clusters frequently in networks, whereas large firms possess the scale to engage in ‘fundamental R&D’. This provides a good basis for cooperation and joint innovation projects. International scope is relevant for the three above-mentioned reasons as well. Variety of international scope leads to a higher information inflow because information and knowledge diffuses faster within firms than across markets. Therefore the presence of business units in a cluster with establishments (for instance a parent company) outside the cluster enhances the likeliness of relatively early adoption of innovations. Variety of international scope also increases the likeliness of the ‘export’ of innovations that were successfully applied in the cluster (Albino et al, 1999). The reaction to external shocks also differs between firms with a different ‘international scope’. 5.4.3 Resource variety 28 Porter (1990) argues that variety of resources adds to cluster performance, because a variety of resources reduce the vulnerability to external shocks. A cluster chiefly dependent on one resource is likely to be strongly affected when either the importance of that resource reduces or the availability (in terms of price/quality) deteriorates. A mining cluster is an example of a cluster with a small resource base. Resources of which the availability can differ between clusters include knowledge and information, labor and raw materials. 5.5 Conclusions In this chapter four variables of cluster performance, related to the structure of a cluster were discussed. The effects of the variables were analyzed, predominantly based on existing literature. Some additional or more precise arguments were developed, in order to understand better how the structure of a cluster influences cluster performance. Table 7 summarizes the effects of cluster structure on cluster performance that were identified in this chapter. These will be tested in the empirical part. 28 Resource variety is not incorporated in the theoretical framework, since it is not really cluster specific.
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PETER W. DE LANGEN The Performance
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The Performance of Seaport Clusters
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Preface v PREFACE My first publicat
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Preface vii The frequent question w
Page 11 and 12: x Emperical part: three cases of se
Page 14 and 15: 1 INTRODUCTION Economists have alwa
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Chapter 8 - Clustering in Seaports
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106 The Performance of Seaport Clus
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112 9.3.3 The presence of intermedi
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118 Figure 15: Optimal investment q
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10 STRUCTURE AND PERFORMANCE IN SEA
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Chapter 10 - Structure and Performa
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11 GOVERNANCE AND PERFORMANCE IN SE
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Chapter 11 - Governance and Perform
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178 Table 74: Number of experts tha
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182 The evolution in market shares
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188 Table 85: Concentration pattern
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13 CONCLUSIONS FOR ANALYZING CLUSTE
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Chapter 13 - Conclusions for Analyz
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14 CONCLUSIONS ON SEAPORT CLUSTERS
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Chapter 14 - Conclusions on Seaport
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214 • Waste processing and recycl
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232 Industry experts The Performanc
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234 Agglomeration economies 10. Ind
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236 Cluster barriers Entry barriers
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238 Solving collective action probl
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240 The weight of the variables of
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Appendix 2: Cluster Experts in the
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Appendix 2: Cluster Experts in the
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English Summary 249 The Performance
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English Summary 251 The third schoo
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English Summary 253 The empirical p
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English Summary 255 Internal compet
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English Summary 257 • The innovat
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262 Tabel S1: Het effect van de vie
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Curriculum Vitae 271 Curriculum vit
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The Performance of Seaport Clusters
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