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Trust in Networks and Clusters
Abstract
It is widely accepted that technological change underpins a global economy and that geographic location and concentration is of foremost importance for regional development and competitive advantage. The realities of global competition require an understanding on the local level of global markets and the complexities of interactions with multiple stakeholders along global supply and value chains. There is increasing evidence that the performance of existing enterprises is significantly improved by networking and clustering. Especially for small- to medium-size enterprise (SME) owners, which play an important role in the economy of countries, local networks represent a potentially complementary response to insecurity arising from global economic developments. In the new economy, networks and clusters are regionally driven with local communities seeking to maintain their social, environmental and economic agendas in a global economic climate. The geographic scope of clusters can vary from a single city, state or region to a network of companies across state borders or even country borders. As industry clusters become more accepted, their definition, boundaries and composition become more complex, which has led some cluster researchers to focus on clustering activities rather than on clusters as such. This article focuses on clustering activities with an emphasis on network relationships.
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