Industry Cluster Governance Issues Discussed

Industrial clusters have widely aroused attentions from the theoretical circles and the government since the 1990s of last Century. Advanced countries fist paid attention to it, while China started to do researches in this field since the late of 1990s. Scholars of different fields look at industrial clusters from different perspectives. This paper will combine institutional economics theories with social economics and take Chengde Electric Appliance as an example to have a deep look at the micro-governance mechanism of industrial clusters from the contract governance and social network governance prospect.As a social and economical phenomenon, industrial cluster is very competitive and sustainable. But there is a problem that cannot be neglected-based on the swift development of economic globalization, the complexity of industrial cluster and the malfunction of organization, industrial cluster is confronted with a series of social and economical problems. Not all industrial clusters can successfully maintain a long-lasting competitive ability and the decaying of industrial clusters is not rare. Industrial cluster has a potential risk while boosting regional economical development. Thus the preservation and development of industrial cluster plays a crucial role. If an industrial cluster of enterprises and organizations is able to run efficiently, a corresponding method of organization order maintenance which includes contract management, social network management and third party management. In the three organization mechanisms, and its organization mechanism acts as the main safeguard in transactions and plays a dominant role in industrial cluster. The implant of social connection is the basis of industrial cluster,Corporate economic activities of those industrial clusters that have intensive production and life network characteristics embed in the social network, which makes the social capital formed by the network, such as, trust, anti-opportunism and so on, exert governance function to cluster activities. Moreover, the participation of third party members, such as governments and clans which will motivate the development of industrial cluster, is an important means of perfecting industrial cluster.