Knowledge Acquisition and Diffusion in Small-Firm Clusters in Zimbabwe: A Complexity Theory Approach

Abstract

The purpose of this study was to establish the reasons behind the apparent success of small firms located in geographical clusters. The study proposes that small firms located in geographical clusters are collectively more efficient than other firms due to their ability to constantly acquire and share knowledge. The study took a Complexity Theory approach and modelled the cluster as a graph, wherein the nature and strength of the inter-firm relationships were represented by three measures of cohesion: 1) the clustering coefficient; 2) the average path length; and 3) the average vertex degree of the graph. It was concluded that the cluster had “small-world” characteristics which enabled both tacit and codified knowledge to be generated and shared, resulting in the collective efficiency of the firms.