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Climate of competition, clusters and innovative performance

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  • Bengtsson, Maria
  • Sölvell, Örjan

Abstract

The aim of this paper is to examine industry competition and cooperation in industry clusters, and to explore the role they play in driving innovation among firms. The dependent variable, innovative performance, is measured in terms of both product and process development. A theoretical model is built on the basis of three constructs: industry competition, involving both structural and relational, or 'climatic' characteristics; industry cluster; and innovative performance. Seven hypotheses are extracted from the model. A LISREL model based on a stratified sample of all Swedish manufacturing industries is used to test our hypotheses. The empirical findings have important theoretical implications in three areas. First, by introducing relational dimensions of competition--the 'climate of competition'--we can build a more refined model of the nature of industry competition. Two types of climate are identified, the 'hot' and the 'cold'. Second, it is shown that the structure and climate of competition are both important drivers of innovative behavior. Third, in addition to competition, cooperation within clusters also has a significant impact on innovation.

Suggested Citation

  • Bengtsson, Maria & Sölvell, Örjan, 2004. "Climate of competition, clusters and innovative performance," Scandinavian Journal of Management, Elsevier, vol. 20(3), pages 225-244, September.
    • Handle: RePEc:eee:scaman:v:20:y:2004:i:3:p:225-244
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    Cited by:

    1. Taimin Li & Afzal Izzaz Zahari & Soliha Sanusi, 2023. "The Sustainability of Technological Innovation in China: From the Perspective of Network Relationships," Sustainability, MDPI, vol. 15(5), pages 1-26, February.
    2. Rachel Levy & Damien Talbot, 2015. "Control by proximity: Evidence from the 'Aerospace Valley' Competitiveness Cluster," Regional Studies, Taylor & Francis Journals, vol. 49(6), pages 955-972, June.
    3. Javier Martínez-del-Río & José Céspedes-Lorente, 2014. "Competitiveness and Legitimation: The Logic of Companies going Green in Geographical Clusters," Journal of Business Ethics, Springer, vol. 120(1), pages 131-146, March.
    4. Anna Bykova, 2011. "Institutes Of Innovative Development: Their Role In Regional Clusters," Economic Annals, Faculty of Economics and Business, University of Belgrade, vol. 56(190), pages 59-76, July – Se.
    5. Shuizheng Song & Md Altab Hossin & Xiaohua Yin & Md Sajjad Hosain, 2021. "Accelerating Green Innovation Performance from the Relations of Network Potential, Absorptive Capacity, and Environmental Turbulence," Sustainability, MDPI, vol. 13(14), pages 1-26, July.
    6. Benner, Maximilian, 2009. "What do we know about clusters? In search of effective cluster policies," MPRA Paper 43848, University Library of Munich, Germany, revised 2009.
    7. Soetanto, Danny & van Geenhuizen, Marina, 2019. "Life after incubation: The impact of entrepreneurial universities on the long-term performance of their spin-offs," Technological Forecasting and Social Change, Elsevier, vol. 141(C), pages 263-276.
    8. Lyu, Yibo & He, Binyuan & Zhu, Yuqing & Li, Li, 2019. "Network embeddedness and inbound open innovation practice: The moderating role of technology cluster," Technological Forecasting and Social Change, Elsevier, vol. 144(C), pages 12-24.
    9. Alexandra Catalina NEDELCU & Cristian BUSU, 2015. "Clusters Performance In The Romanian Automotive Industry," Proceedings of the INTERNATIONAL MANAGEMENT CONFERENCE, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 9(1), pages 645-654, November.
    10. Expósito-Langa, Manuel & Molina-Morales, F. Xavier & Tomás-Miquel, José-Vicente, 2015. "How shared vision moderates the effects of absorptive capacity and networking on clustered firms’ innovation," Scandinavian Journal of Management, Elsevier, vol. 31(3), pages 293-302.
    11. Sara Tessitore & Tiberio Daddi & Fabio Iraldo, 2010. "Eco-innovation and economic performance in industrial clusters: evidence from Italy," Working Papers 201005, Scuola Superiore Sant'Anna of Pisa, Istituto di Management.

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