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Impact of cluster networks on exporting scope: importance of cognitive proximity and strategic fit with firm's upgrading innovation strategies and organisational capabilities

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  • Poh-Lin Yeoh

Abstract

Distinguishing between intra-cluster ties (ICTs) and extra-cluster ties (ECTs), findings from the 110 semiconductor firms in Malaysia suggest that SMEs forming more ETCs tend to have higher exporting scope. The extent to which intra- and extra-cluster ties impacts SMEs' exporting scope further depends on the strategic fit with the firm's innovation upgrading strategies, and firm-specific capabilities in networking and realised absorptive capacity. In addition to networking capabilities, the positive interaction between extra cluster ties and realised absorptive capacity capability on export scope confirms the importance of reaching out to extra clusters with knowledge and capabilities that are similar enough to facilitate the understanding and internalisation of knowledge, but at the same time different enough to facilitate contributions of complementary knowledge. With respect to the moderating relationship between firms' innovation upgrading strategies and ETCs on exporting scope, we found a non-significant and positive finding for product and process innovation upgrading, respectively.

Suggested Citation

  • Poh-Lin Yeoh, 2024. "Impact of cluster networks on exporting scope: importance of cognitive proximity and strategic fit with firm's upgrading innovation strategies and organisational capabilities," International Journal of Export Marketing, Inderscience Enterprises Ltd, vol. 6(2), pages 206-232.
    • Handle: RePEc:ids:ijexpo:v:6:y:2024:i:2:p:206-232
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