Developing a scale for business network clustering

The purpose of this paper is to report on the results of a scale development study that measures the nature of business clustering relationships. Business clusters, i.e. networks of businesses in a similar industry and/or region, have been studied previously but no scale has yet been developed that describes the true nature of these network relationships. By testing the DODS model proposed by Djorcev et al. (2015), which is conceptualized very differently from the well accepted and popular Porter models, this paper extends the clustering theory in business networks. In particular, we more deeply explore what it means to be in a cluster with other organizations. This paper reports on the survey test aspect of a mixed method project conducted in the global wine industry. The research design relies on a previous qualitative study where we proposed a model for the nature of business clustering to develop a multi-item survey. The new questionnaire tests the validity of eight dimensions of clustering (Being True to Ones‟ Core Business; Clarifying Motivations to Cluster; Determining Rules and Guidelines; Reconciling Collective Needs/ recognizing unique needs; Reconciling Collective Needs/international presence needs Determining Member Characteristics; Managing the Dynamics of Cluster Membership/ dynamics; Managing the Dynamics of Cluster Membership/alignment; Recognizing Drawbacks and Limitations) and outcome variables (three dependent variables: enhanced own organization‟s marketing strategies; Improved international presence; Improved regional awareness). This study aimed to validate the scale items and demonstrate construct relationships to business performance measures. Although refined from the initial item pool through this scale development process, the final scales appear somewhat generalizable, able to be used by researchers in a variety of industries. Managers can use this instrument to examine the aspects of their own network relationships as they relate to marketing strategies and regional awareness. This is a cross-sectional survey conducted only within one industry, thus findings may be limited by time and context. Future research ought to extend the generalizability we implied as well its stability over time.