Network dynamics and cluster evolution: Changing trajectories of the aluminium extrusion industry in Dali, China

Abstract

Research on industrial clusters has shifted in a paradigmatic way from an exploration of structural ideal-types toward evolutionary explanations. Thus far, however, networks- the key concept in the former paradigm-and evolution-the focus in the latter- remain somewhat unconnected in the literature. This article addresses this gap by developing a comprehensive tri-polar analytical framework of cluster evolution. This framework combines the three concepts of context, network and action, allowing each to evolve in interaction with the others. The empirical analysis applies this framework to the aluminium extrusion industry cluster in Dali, Guangdong province, which has developed over a period of 30 years. Our study finds that with the formation of a new generation of entrepreneurs, previous kinship-based learning networks have disappeared, causing significant changes to action and interaction within and between firms. © The Author (2011). Published by Oxford University Press. All rights reserved.