Abstract
Existing knowledge-based theory (KBT) of cluster largely neglect the mechanism of cluster evolution. We draw on an in-depth qualitative research of Danyang glasses manufacturing cluster in China to understand the complex interplays among cluster competitive advantage, knowledge creation, cluster institutional processes, and cluster learning behaviors. Data analysis found that cluster institutional processes and learning behaviors operate in recursive configurations that underpin cycles of cluster growth, decline and restoration. Based on these results, we develop a dialectical process model of cluster evolution. It contains two self-reinforced spirals (institutional isomorphism reinforcing with cluster exploitation and institutional entrepreneurship reinforcing with cluster exploration) and their dialectical connector (institutional contradictions and actors' reflections). Our findings contribute to the KBT of cluster by untangling the dynamics that drive changes in the whole cluster evolutionary lifecycl...
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