Cluster Governance Mechanisms

In recent years, the risk of cluster causes more and more attention. Cluster risk aversion is a collective action of multi-cluster subject participating to coordinate their conflict of interest. The generation of the collective action poses the problem of "cluster governance ". However, the more important meaning of cluster governance research is revealing the "black box" of the cluster governance, that is, through the analysis of how various governance mechanisms affect cluster firms'interations, to explain and predict the development of the cluster.With respect to the research of corporate governance and public governance, the problem of cluster governance, which most of the literature depends on the network governance research, is a virgin land to be reclaimed. This paper, based on existing research, using the theory of institutional economics and socialeconomics, as well as game theory and case analysis, established an analytical framework of cluster governance research, and explored into the main three governance mechanisms, including network governance, leading corporate governance and third-party governance. Through the case of Taizhou sewing machine industrial cluster, the paper discussed governance mechanisms of the cluster, and their effect on the cluster firms'interactions.At the same time, through a multi-clusters case and the developing history of Taizhou sewing machine cluster, the paper explored the interactive relationship between governance mechanism and governance structure.Through theoretical and empirical analysis and argument, this study formed the following conclusions:(1)The network governance mechanism of industrial cluster is mainly comprised by four forms, theyare trust, reputation, collective punishment and macro-culture. Each of these mechanisms, under certain conditions, plays the role of coordinating and ensuring the transactions between firms in cluster.The network governance only can achieve the maximum results under the combined effect of the four mechanisms. However, even if the cluste is lacking in reputation, collective punishment and macro-culture mechanisms, cluster enterprises can use the "trial and error" to establish new corporatepartnerships, and expand the scope of transactions.(2)Leadingcorporate governance mainly refers to its effect on supporting enterprises" behavior. The division structure of leading enterprise and its supporting enterprises is the mian factor affecting the leadingcorporate governance. Which kind of division structure will the leading enterprise choose is depend on its economical thority in cluster, innovation pattern among/between leading enterprises and the overlapping level of the supporting network. In addation, the leadingcorporate governance is also reflected in its effect of leading or stimulating competation on the cluster enterprises which are in the same industrial chain link.(3)The governance of industry association is reflected in three aspects, that is price management and industry standardizing, Information and implementation intermediary. However, the association governance is only in effect on the premise that it has the executive power, which derived from the cluster enterprises" heterogeneity, administrative authority of local government and the special social prestige of the leaders of the association.(4)Local governments through direct or indirect means to achieve the governance of the cluster, with the characteristics of mandatory, externalities and dynamic. Their effects of governance is the most common, but existing "North paradox".(5)The case study of Taizhou sewing machine industrial cluster indicated that the cluster would be missing some of the governance mechanism under the influence of the cluster development level and the objective environment. As a result, governance mechanism failed to achieve the perfect effect.(6)The case study of 21 local industrial clusters and the developing history of Taizhou sewing machine industrial cluster indicated that the difference of governance structure leads to the difference of clusters' governance mechanisms.Meanwhile, the cluster governance structure wil change under the cumulative effect of governance mechanisms.The study concluded deepens the understanding of governance issues on the cluster. On the basis of the relevant research, the paper has been made in the following new developments:(1) Establishing a systematical analysis framework of cluster governance, explaining and predicting the development of the cluster from the perspective of cluster governance; (2)Analyzing the network governance of industrial cluster systematically, discussing the mechanism of network governance as well as its producing conditions. Thereby, analyzing when the conditions are not available, how firms in cluster realize spontaneous collaboration equilibrium; (3) Analyzing the leadercorporate governance from the perspective of division structure, clearing the logic of leading corporate governance research; (4) Large-scale cases and empirical study to complement the lack of empirical analysis of existing cluster of governance research...