Abstract
Horizontal interaction and networking between competitors as opposed to vertical value-chain-based linkages has long been under-conceptualized in the literature on the internal and external structure of clusters. Combining labor mobility/spill-offs, friendship ties among competitors, the role of trade fairs/professional conferences, and competitive interaction, a framework of clusters is developed that focuses on the horizontal dimension as an alternative way to interpret local and external learning. This model is applied to investigate divergent strategies and learning activities of three lead firms in the Hangji toothbrush industry, China, drawing on both vertical linkages in global value chains and horizontal interaction in competitive networks. Although both frameworks can explain differences in strategies among the lead firms in the cluster, the notion of competitive networks is particularly significant as horizontal interaction may provide additional explanations beyond producer-buyer linkages and learning.
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