Clusters in developed countries, such as the Silicon Valley in the U.S. and Sophia Antipolis in France, utilize geographical proximity to industries, universities, and the government to establish collaborative systems. On the other hand, although clus...
Clusters in developed countries, such as the Silicon Valley in the U.S. and Sophia Antipolis in France, utilize geographical proximity to industries, universities, and the government to establish collaborative systems. On the other hand, although clusters have been established based on geographical proximity to promote knowledge exchanges in Korea, industries, related organizations, and those in the same business rather work together regardless of proximity forming knowledge network. Therefore, it is necessary to investigate the effects of geographical proximity and knowledge network, industries' two strategic means, on communication with their partners along with their relative effect. In addition, since the ultimate goal of choosing geographical proximity and knowledge network is technological development performance, which necessitate the process of acquiring knowledge through relationship network with partners, we also need to explore the role of communication and the process of acquiring knowledge based on geographical proximity and knowledge network. The present study surveyed the firms that are in an industry complex, and a total of 182 questionnaires were used in the final analysis. The findings of the study are as follows:
First, geographical proximity has a significant effect on knowledge network. The results indicate that the cluster projects that are strategically promoted by the government have a spreading effect on establishing various knowledge network. Second, geographical proximity showed a significant effect on technological knowledge development, communication, and general knowledge learning. On the other hand, knowledge network only affected communication. The results show that geographical proximity plays more important role than knowledge network in causing the industry to acquire knowledge. More importantly, even though both factors affected communication, knowledge network showed a greater relative effect on communication than geographical proximity. The finding suggest that although communication can occur through geographical proximity, the efforts to establish strategic knowledge network by the government and related organizations are more effective for communication between partners. Three communication was shown to affect technological knowledge development and general knowledge learning. It is confirmed that communication affect technological knowledge development and general knowledge learning through geographical proximity and knowledge network. Especially, the indirect effect of communication was greater than the direct effect of geographical proximity, indicating the importance of communication with partners. Fourth, of technological knowledge development, communication, general knowledge learning, only technological knowledge development and general knowledge learning showed a significant effect on technological development performance. The results imply that despite the importance of communication with partners the process of actual acquisition (i.e., technological knowledge development, general knowledge learning) is necessary within the industry in order to achieve technological development performance.