How much difference is there between industrial district firms? A net value creation approach

Abstract

We argue that industrial district firms possess a number of shared resources that explain the competitive superiority of these firms. These factors include common reputation, intensity of exchange and combination of resources, and participation of the local institutions. Using these shared resources we aim to address an unsolved question in the industrial district literature, namely, the internal heterogeneity of the clustered firms. Our empirical research drew upon a sample of 288 Spanish manufacturing firms belonging to industrial districts. Findings suggest that, even assuming a certain degree of homogeneity among internal district firms, they develop their own particular relationships and networks and, as a result, exploitation of the shared resources is irregular. These differences can therefore be used to explain the differences in value creation among firms.