Development of A Theoretical Framework for the Study of Cluster Networked Agro-Based Processing in Indian Context using Literature Survey

Abstract

Role of clusters in value networks has increasingly been emphasized in that clusters can provide a conducive ecosystem for upgrading the elements of value chains. Defined as geographical concentrations of inter-linked firms and institutions in a particular field, clusters have been considered potential drivers of competitiveness and growth catalysts. The broad purpose of this study is to understand how social capital in clusters plays a role in knowledge spillovers and ultimately firm performance in case of agro-based clusters. Based of literature review, the study brings out that knowledge sharing plays a mediating role in relationship between social capital and innovation while absorptive capacity of a firm plays a moderating role. In the Indian context where agro-processing is carried out largely in the unorganised sector at micro, small and medium level having a limited internal absorptive capacity required for upgradation, knowledge sharing through networks can potentially increase the potential and realized absorptive capacity of the firms, thus leading to innovation in the agro-processing sector.