Vertical and horizontal relationships in an industrial cluster: Implications for firms' access to global markets

We model the relational coordination of different types of interdependencies among clustered SMEs and the resulting improvement in their collective efficiencies and access to international markets. Specifically, their relational coordination of pooled, sequential and reciprocal interdependencies results respectively in greater sourcing of collective inputs, superior production efficiencies and higher innovation rates. These collective efficiencies in turn serve as competitive currencies for SMEs to access global markets. Empirical evidence from an exclusive survey with 232 wood-furniture SMEs clustered in Buenos Aires, Argentina generally supports our model. We discuss implications for theory, practice and public policy.