Clusters, Social Fields, and Capabilities

This article addresses how the economic organization and evolution of industrial clusters is affected by how firms are embedded in social fields—dense agent networks with shared rules of conduct, coordinating interfirm relations. The article points out that while clusters represent a local form of economic organization, they do not depend solely upon local social fields. Rather, some clusters are influenced by regional and national, as well as global, social fields, and it is argued that this may explain the ability of these clusters to restructure and adapt to changing market conditions. The importance of various social fields for three Norwegian fish-processing clusters is analyzed. Very different local and national, as well as global, networks affect these clusters. Consequently, the clusters have evolved quite differently. The case studies presented in the article suggest that while a local social field may facilitate coordination among firms in a cluster, it may also create collusion and create economic lock-in.