Abstract
This paper employs longitudinal case study research to investigate why and how KIBS embeddings impact the evolution of industrial cluster's network structure. The paper answers these intrinsic research questions by examining how network structure of Datang socks cluster located in southeast China, evolutes under the influence of KIBS embedded from 2003-2007. Initially, in order to explore the functional mechanism, KIBS embedding process of each development phase has been analyzed. Next, SNA and UCINET software have been used to unveil the process of the change of cluster network structure, such as network density, network between centrality and network agglomeration. Finally, we summarize the KIBS' functional mechanism by KIBS' ability to influence some important variables and optimize cluster network structure, which provides solid advice to policy makers.
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