Clusters under pressure: the impact of a crisis in Italian industrial districts

This paper analyses the relationship between increased competition and cluster resources - that is, horizontal cooperation, supporting organizations, and knowledge transfer - during the 2008-2010s economic crisis, and we discuss the impact of the crisis on small and medium enterprises (SMEs). The empirical study is based on a survey with entrepreneurs within two Italian clusters: Arzignano (tannery) and Riviera del Brenta (high-quality footwear and accessories). Our results show that competition impacts the clusters' competitive resources. We consider that support institutions act as a local resource but also as a local actor, which means that having a positive impact on them depends on the actions they develop to overcome a crisis. Thus, for local SMEs, territory is a source of competitive advantage, even when the cluster is under pressure. This paper provides two major contributions. First, we show that when cluster resources are affected by an external shock, a positive result might emerge. Second, from a managerial point of view, we show that institutions are important in supporting the cluster in times of crisis, and these institutions may be able to implement concrete actions to help local SMEs promote their products.