Abstract
This paper examined the relationships among firms in a rapidly growing specialized industrial cluster—the Chery automotive cluster located in the Wuhu Economic and Technology Development in eastern China. After demonstrating how the Chery automotive cluster contributed to sustainable regional economic development, it focused on defining the roles that major firms play in the localized production network. Based on three attributes of the firm (network linkages, network position, and network power), the study identified a typology of firms’ role, including the dominant core, lead firms, gatekeepers, intermediaries, club of foreigners, peripherals, and loners. By revealing the heterogeneity of the firms and discussing the differing roles they play in the network, the paper made some policy recommendations to promote the sustainable development of the cluster, including providing policy supports to core firms, encouraging inter-firm networking and interaction, and diversifying the cohort of gatekeepers.
Highlights
One of main challenges that regions face in sustainable development is achieving sustainable economic growth while minimizing environmental impacts
An important development strategy of regions lies in embedding themselves in the global production network through developing or attracting industries, especially higher-value added and less-polluting industries
This study examines an industrial cluster anchored by Chery Automobile (“Chery auto cluster” hereafter) in the Wuhu Economic and Technological Development Zone (Wuhu ETDZ)
Summary
One of main challenges that regions face in sustainable development is achieving sustainable economic growth while minimizing environmental impacts. An important development strategy of regions lies in embedding themselves in the global production network through developing or attracting industries, especially higher-value added and less-polluting industries. Fostering industrial clusters is considered one important approach to improving regional competitiveness. Industrial clusters are geographical concentrations of firms from the same economic sector, along with specialized suppliers, service providers, firms in related industries and local institutions [1]. In addition to the intra-industry spillovers through the co-location of specialized activities pertaining to the same industry, inter-industry spillovers occur when firms forge backward and forward linkages with local suppliers and customers, and favor cooperation and creation of new ideas across sectors [3,4]. Industrial clustering may result in greater regional exports and employment growth, and promote sustainable economic growth [5]
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