Interpersonal Relationships as key Drivers of Cluster Performance

Digital Cluster organisations encompass physical agglomerations of individuals, companies, government and academic organisations situated within a geographical location. Member companies can be micro-entities, SME's and large corporations all expecting to gain advantage by their cluster membership. The collective gathering of technologies and intellectual property may incubate and accelerate innovation of services and products via networks (social and dynamic networks and ties to other networks and organisations). They could be described as something almost organic, in that they tend to come together through their own dynamics as much as they do through central direction. But how can we evaluate the performance of these collective entities such that they make a positive contribution towards delivering and creating value. The notion of clusters is very well established across disciplines that examine economic activity, ranging from business to geography. This research studies the potential and actual benefits of a cluster organisation, to understand the dynamics of the cluster in a tech-oriented environment. What are the interpersonal relationships that drive the cluster productivity as one of the three dimensions of cluster success suggested by Porter? The paper further suggests using an ethnographic approach to developing a management model for the performance management of clusters, through an extended period of close observation of these Digital organisations in action, specifically the senior management and the companies who active within the cluster. Clusters and other forms of agglomeration have been a subject of academic interest for decades, but they present some enduring challenges for researchers. Therefore, this research project should provide a unique contribution in both conceptual and methodological terms. Going further, in the future it could allow for comparative data to be created between different offshore island clusters, thus offering an understanding of which ones are the most effective, and why.