Author: François N. Dubé, Yang Haijuan and Huang Lijun

Research Article

Year: 2015, Volume 15 No 1
Pages: 102-115

Abstract

The concept of industrial clustering—that is, the importance of synergies between complementary economic activities gathered together in one place—has long been associated with an easier, faster process of internationalization for participating rms. But the question of how exactly—by which mechanisms—such industrial clustering helps rms internationalize remains unclear. To fully understand this relationship, the present article focuses on the process of cluster governance, and distinguishes between three different aspects, namely, the cluster composition, the internal network density, and the degree of knowledge sharing. By focusing on two major halal industrial clusters in Malaysia—namely, the Penang International Halal Hub and the Melacca Halal Hub—we shall see how the different aspects of the Malaysian model of industrial clustering facilitates the process of rm internationalization in the Halal industry. In order to analyze the internal network of the two halal parks under study, we use the quantitative methods derived from Bossomaier and Green (1999), based on data related to networks of business interactions. The conclusions of the present article will allow us to formulate useful insights for other halal industrial clusters seeking to internationalize their activities.

Keywords: halal industry, industrial parks, firm internationalization, cluster governance, network density, knowledge management