The Influence of Social Capital on Cluster-Based Knowledge Sharing and Value Creation: An Empirical Analysis of the Hsinchu Science-based Industrial Park in Taiwan

Abstract

Geographic location not only connects dispersed companies and institutions across vertical and horizontal value activities, but also influences specialization benefits, procurement, technology diffusion, and public policy support. Those studying cluster networking and knowledge management usually emphasize the importance and antecedents of a cluster economy; however, a social capital perspective is sparsely employed when researchers looked into knowledge sharing and value creation. Social capital is usually defined as an asset that exists in social relations and networks. This paper intends to examine a cluster's value creation by employing the concept of social capital. While social capital and value creation is respectably set as the independent and dependent variable, knowledge sharing is set as the mediator to clarify the cause and effect. Because the Hsinchu Science-based Industrial Park (HSIP) in Taiwan is famous for its state-of-the-art technology in world competition, it is selected as the research sample. This study uses Structural Equation Modeling to test the hypotheses. Empirical results reveal a good overall fitness of the research framework. Social capital is found to significantly influence knowledge sharing and value creation, while knowledge sharing is confirmed to yield higher productivity and innovation.