Edited by Craig C. Julian, Zafar U. Ahmed and Junqian Xu
Chapter 4: Global optimal values of enterprise cluster fitness for Chinese firms
Tang Linjia and Lin Li
Enterprise cluster, as a platform for local industrial specialization and cooperation through the assembling process of enterprises and relevant institutions within certain regions, has created external effects for lowering transaction costs and promoting technological innovation (Wei and Wei, 2004). The innovation network established on the foundation of enterprise clusters has produced positive effects to lower innovation expenses, enhance innovation performance and motivate regional competitiveness (Chi, 2005). The vitality of a cluster is imbedded within the social culture and the interaction network of institutions within a cluster based on the mutual trust of each individual. Therefore, the management of enterprise clusters should not only be implementing policy from the macro-industrial level and cultivating a healthy competitive environment, but also be executed to a more detailed micro level to cope with the relationships among cluster members and the optimization of cluster structures. The cluster members include institutions and organizations such as enterprises of large, medium and small sizes, scientific research institutions, intermediaries, suppliers, customers and governmental departments (von Hippel, 1994), and these organizational members operate as critical nodes within a cluster network. The interaction and intensity of connection among such organizational nodes has formulated the structure of a cluster, and the degree of complexity of the cluster structure has exerted significant influence on the fitness of the enterprise cluster (Press, 2006).
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