Influential Factors On Growth Of Clustering Firms In The E-business Era

Inter-firm linkages and localized knowledge spillover are often considered as competitive advantages of cluster. However, the cluster literature pays less attention to the impact of local specialized market and e-commerce on cluster development. With the rapid development of economic globalization and electronic commerce, this study investigates the influences of both internal inter-firm linkages and external specialized markets and e-business environment on the growth of industrial clusters with a case study on the Children Garment cluster in Zhili, Zhejiang province. We found that inter-firm production linkages exert influences on the development of clustering firms but such effects are varied by the sources of knowledge and information, with only knowledge and information from suppliers is significant. The role played by e-business platform appears insignificant and the specialized market even produces a negative influence. This paper contributes to the existing literature by highlighting the knowledge heterogeneity from different sources and casting doubt over the mutual learning and trust relationship in a cluster. Meanwhile, the paper also points out the lock-in effect of specialized markets, In the end, the author provided policy recommendations for promoting the sustainable development of the children garment industry cluster in Zhili town, Zhejiang province.