This study evaluates the progression and influencing factors of the chili pepper industry cluster in Xinzhou City, Shanxi Province from 2006 to 2020 from a social network standpoint, using both theoretical and empirical methods as well as incorporating field survey data. The findings reveal the following facts: (1) the chili pepper industry cluster underwent a steady evolution in the social network over the course of 15 years, evidenced by an increase in the network clustering coefficient from 0.157 to 0.470. The network scale expanded from 9 to 76 entities; thus it basically achieved maturity; (2) the development modes of the chili pepper industry cluster in Xinfu District can be summarized as follows: an “embryonic stage” (2006–2010), an “initial stage” (2011–2015), and a “developmental stage” (2016–2020), which are marked by a broker-centered industry mode during the embryonic stage, a cooperatives-centered industry mode during the initial stage, and a chili pepper association- and leading enterprise-centered industry mode during the developmental stage; (3) the policies, fund, market, labor, and external capital have a significant impact on the development of the chili industry cluster in the Xinfu District. During the embryonic stage, the primary influencing factors are fund (0.326) and market (0.309). During the initial stage, the primary influencing factors are market (0.162) and external capital (0.135). During the developmental stage, the primary influencing factors are policy (0.232) and market (0.232), with technology (−0.102) serving as a limiting factor. It is crucial to take into account natural resource endowment and industry mode features, foster technological advancement, and spur social capital involvement in developing chili pepper industry clusters. The government must create a supportive external environment for the chili pepper industry cluster’s growth to establish a solid foundation for the high-quality advancement of the agricultural industry cluster. The insights derived from this study can serve as a reference and source of inspiration for the growth of other vegetable industry clusters in China.