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6 CLUSTER GOVERNANCE In this chapter the influence of cluster governance on the performance of clusters is discussed. We define cluster governance as the coordination of activities in a cluster 29 . Clusters are characterized by frequent interaction and coordination. Different coordination mechanisms are used, market coordination included. Based on a literature review, four variables related to the governance of clusters are distinguished (see Figure 9). Figure 9: Four governance variables Cluster structure Cluster performance Cluster governance Presence of intermediaries Level of trust Embedded leader firms Solutions to collective action problems A framework to analyze coordination in a cluster is developed in the first paragraph. The four variables are discussed in the following four paragraphs and a concluding section finalizes the chapter. 29 Jessop (1997, p. 95) defines governance as ‘collaborative interaction between stakeholders’. Our definition is more ‘Williamsonian’: starting from an analysis of the roles of different mechanisms of ‘collaborative interaction’. Issues such as the risks of ‘hold-up’ and ‘hostages’ (Nooteboom, 1999A) are not discussed.
54 6.1 Coordination in a cluster The Performance of Seaport Clusters The need for coordination in clusters is undisputed amongst cluster scholars (see Harrison, 1994). Cluster scholars frequently regard clusters as special solutions to a coordination problem. In this stream of literature (the flexible specialization literature, see Piore and Sabel, 1984) clusters are regarded as networks of (small) firms that cooperate based on trust and cooperation. This ‘mode of production’ is an alternative to production by large conglomerates. Other scholars question this particular definition of clusters (Markusen, 1996) but acknowledge the importance of coordination in a cluster. Different modes of coordination (or to use the terminology of Williamson: modes of governance) can play a role in clusters (see Hollingsworth et al, 1994). We distinguish six general modes of coordination (see Campbell et al, 1991, Hollingsworth and Boyer 30 , 1997, and Williamson, 1985): markets, firms, interfirm alliances, associations, public-private organizations and public organizations 31 . None of the different modes of coordination is ‘structurally superior’, each mode has advantages and disadvantages. Consequently, different modes of coordination are used in a specific domain 32 , to solve different coordination problems. In Table 8, an overview is given of different modes of governance, their advantages, disadvantages and ‘domain’. 30 Hollingsworth and Boyer (1997) identify six modes of governance, five of which (firms, markets, interfirm alliances, associations and public organizations) are included in this study. Public- private organizations are added and ‘communities’ are omitted, because communities are not designed to coordinate specific activities. 31 Campbell et al (1991) argue that government has such special abilities (such as changing property rights, allocating resources and serving as gatekeepers) that it cannot be analyzed as merely an alternative governance mechanism. Hollingsworth and Lindberg (1985) and Hollingsworth and Boyer (1997) do analyze the state as a governance mechanism. We include public organizations in the analysis of governance when they provide public services (such as education). The legislative role of the government is not included in the analysis. 32 This is a ‘Williamsonian approach’, because each mode of governance has a ‘structural domain’, based on its advantages and disadvantages. However, this does not imply that all modes of governance develop automatically in their ‘structural domain’. Thus, this framework is not sufficient to analyze governance regimes in full detail, but a useful starting point.
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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
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x Emperical part: three cases of se
Page 14 and 15: 1 INTRODUCTION Economists have alwa
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Page 52 and 53: 5 CLUSTER STRUCTURE In this chapter
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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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