Research On The Internal Mechanism Of Inclusive Growth For Clustered SMEs

With the rapid growth of economy, many problems occur or become apparent such as the widening gaps among social groups, employment pressure among other things, and the shortage of resources. Evidence shows that a considerable part of people from underdeveloped areas are still excluded from the traditional development system. Policy maker are aware of the need to test out or explore new approaches to development in the current circumstances."Inclusive growth", which is now key words of policy language, represents an important departure of development strategies from the conventional ones. United Nations Development Program (UNDP), World Bank, Asian Development Bank (ADB) and other international agencies all take inclusive growth as guiding ideology or core strategy, accompanying with inclusive growth research gradually becoming the focus of the academic.However, extant research still stays in the early stage of theory development and has several limitations as follows. Firstly, few scholars strictly define the connotation and dimension of inclusive growth, not to mention subsequent in-depth empirical research. Secondly, much of the extant research on inclusive growth is individual-level, which focuses on the elimination of social exclusion for the poor, being unaware of industrial cluster as an efficacious means to achieve firm-level inclusive growth. Finally, extant research fails to establish a unified theory to explore the internal mechanism of inclusive growth.This paper concentrates on "how shared resources influence inclusive growth of SMEs" and aims to answer the following questions:(1) What are the basic elements of shared resources?(2) What are the relationship between shared resources and inclusive growth of SMEs?(3) How does firm capability moderate the relationship between shared resources and inclusive growth of SMEs?(4) How does institutional environment of industrial cluster moderate the relationship between shared resources and inclusive growth of SMEs?Based on previous theoretical and empirical research, this paper carries out an in-depth research on the fore-mentioned four issues. Firstly, based on27sample firms, this paper explores the basic elements of shared resources by using grounded theory method. Secondly, by conducting a multiple case study, this paper concludes an initial theoretical framework of shared resources acting on inclusive growth. Thirdly, this paper proposes a conceptual model for subsequent empirical research.Finally, based on231questionnaires, this paper tests the relationship between shared resources and inclusive growth of SMEs, and then the moderating effects of institutional environment and firm capability on the relationship between shared resources and inclusive growth.As a result, some conclusions can be presented as follows:(1) Shared resources are multi-dimensional, including industrial chain supporting system, collective learning network, support of local institutions, intensive competing interactive atmosphere, and common reputation.(2) Shared resources are key determinants of inclusive growth. In detail, shared resources positively influence process equity and outcome equity.(3) Institutional environment significantly moderates the relationship between shared resources and inclusive growth. In detail, formal institutional environment positively moderates the relationship between shared resources and process equity, and the relationship between shared resources and outcome equity. Meanwhile, informal institutional environment positively moderates the relationship between shared resources and process equity, and the relationship between shared resources and outcome equity.(4) Firm capability significantly moderates the relationship between shared resources and inclusive growth. In detail, opportunity identification capability positively moderates the relationship between shared resources and process equity, and the relationship between shared resources and outcome equity. However, resource integration capability doesn’t significantly moderate the relationship between shared resources and process equity, and the relationship between shared resources and outcome equity.Overall, focusing on "how shared resources influence inclusive growth of SMEs", this paper conducts some theoretical innovations as follows:(1) This paper examines the influence of shared resources to inclusive growth. Much of the extant research on inclusive growth is individual-level, which focuses on the elimination of social exclusion for the poor, being unaware of industrial cluster as an efficacious means to achieve firm-level inclusive growth.This paper tries to fill the research gap by integrating shared resources theory and inclusive growth research. Based on a large sample empirical research, this paper reveals the relationship between shared resources and inclusive growth, which enriches firm-level inclusive growth research from RBV perspective. (2) This paper reveals the mechanism of firm capability and institutional environment to inclusive growth. Although extant research considers capability and institution as key factors to achieve inclusive growth, yet researchers don’t reveal the mechanism of capability and institution to inclusive growth. By creatively integrating firm capability and institutional environment to the mechanism of shared resources acting on inclusive growth, this paper is propitious to a better understanding of the mechanism of capability and institution to inclusive growth in the context of industrial clusters.(3) This paper develops a firm-level scale of inclusive growth. Extant research mainly uses economic statistics to measure inclusive growth, and maily focuses on macro-level or individual-level. This paper develops a firm-level scale of inclusive growth based on equity theory, social exclusion theory and welfare economics, which enriches currently qualitative thinking dominant inclusive growth research and promotes firm-level quantitative inclusive growth research in the future.