Business networks in an auto-component cluster: an exploratory study

Abstract

PurposeThe purpose of this paper is to find out the different types of business networks formed by firms with the stakeholders present in a cluster, i.e. how firms in a cluster interact with the cluster stakeholders?Design/methodology/approachTo answer the research question, this study uses an exploratory research design, which is carried out in two stages, Stage 1 involves use of primary data, which was collected through semi-structured personal face-to-face interview mode and Stage 2 involves survey research method where data was collected through a survey questionnaire. Data for interviews and questionnaires were collected from managers and owners of firms operating in the cluster at their offices.FindingsThe study has identified four types of business networks between a firm and its buyers, only one type of business network with the suppliers and educational institutes, finally two types of business networks with government agencies and local associations. However, with respect to network with other stakeholders such as research institutes and competitors, the study shows that the interaction between a firm and these stakeholders is not strong i.e. the linkages between them remain largely unfilled.Research limitations/implicationsThe study has been limited to only one cluster thus it might not be appropriate to generalise the findings. Further research in this area needs to be done by taking other clusters to generalise the findings.Originality/valueThe study has tried to answer the research gap of lack of literature on types of business networks formed by firms with the stakeholders present in an industrial cluster, and thus, contributed to the existing literature of business networks. The identified business networks provide a much deeper understanding of how firms connect with its buyers, its suppliers, government agencies and educational institutes operating in an auto-component cluster.