The Performance of Clusters - an Analysis of the Impact of Cluster Context, Structure, and Functioning on Cluster Performance

This study examines how different contextual, structural, and functioning characteristics of clusters influence cluster performance. Hereto, we develop a conceptual framework that identifies potential influencing factors, validate it statistically and estimate the impact of the variables on cluster performance using PLS structural equation modelling. Our results show that important determinants of cluster performance are, among others, long-term planning security and procedural trust between the cooperating firms (contextual conditions), formalized rules and sustainable structures (structural elements) and clear goals and tasks (functioning characteristics). However, the results also reveal that determinants assessed as important by the literature like proximity, cooperation experience but also monetary incentives for the cluster management do not seem to have a positive impact on performance. Our results do not only modify general assumptions in cluster research concerning drivers of cluster performance, but also help firms and policymakers to conceptualize successful clusters.