Clusters Go Green: Drivers of Environmental Sustainability in Local Networks of SMEs

Literature on eco-parks and eco-clusters has emphasized the opportunities for the coupling of local economic development and sustainability, going beyond firms’ green strategies to include also supply chains and local networks of firms. Studies have described the conditions and policies for the development of new sustainable economic activities in specific areas based on the industrial ecology approach. In contrast, little attention has been given to analysing how existing industrial districts are facing the chances of the new competitive pressures related to sustainability. The paper investigates the drivers and the evolutionary paths of industrial districts towards environmental sustainability. The empirical analysis is based on qualitative case studies of two Italian industrial districts specializing in the production of leather (Arzignano) and tiles (Sassuolo). Managerial and policy implications are provided. DOI: 10.4018/jissc.2013010103 38 International Journal of Information Systems and Social Change, 4(1), 37-52, January-March 2013 Copyright © 2013, IGI Global. Copying or distributing in print or electronic forms without written permission of IGI Global is prohibited. in which those firms are located (e.g., Coté & Cohen-Rosenthal, 1998; Dansero, 1996). From this point of view, in the last decade, literature on eco-parks and eco-clusters has emphasized the opportunities for the coupling of local economic development and sustainability, going beyond firms’ green strategies to include also supply chains and local networks of firms. Those studies have described the conditions and policies for the development of new sustainable economic activities in specific areas based on the industrial ecology approach (e.g., Deutz & Gibbs, 2004). Eco-clusters or ecoparks are artificial “eco-systems” (Dimitrova, Lagioia, & Gallucci, 2007) oriented to recreate environmentally-friendly industrial activities, promoted by specific policy programmes of intervention. While eco-clusters can be considered to be new aggregations of economic activities with interesting growth potential, in contrast, little attention has been given to analysing how existing industrial districts are facing the chances of the new competitive pressures related to environmental sustainability. The widespread literature on industrial districts (e.g., Becattini, Bellandi, & De Propris, 2009) depicts a specific model of economic development where the economic systems and the social fabrics are interconnected and support one another, rooted in specific territorial areas. This model contributed to the economic success of many countries (e.g., Italy) and regions (e.g., Silicon Valley) and has been used by policy makers (e.g., The European Cluster Memorandum, 2007) to promote local developments and economic growth. How are industrial districts able to incorporate environmental issues in the behaviour of local firms? Which is the role of firms and local institutions in this process? The paper investigates the evolutionary paths of industrial districts towards environmental sustainability and their drivers. We discuss the literature on eco-clusters and sustainability. We analyse the district model and the emerging trends applicable to environmental issues. We then focus on empirical analysis, based on qualitative case studies of two Italian industrial districts specializing in the production of leather (Arzignano) and tiles (Sassuolo). Managerial and policy implications are provided in the concluding section. COUPLING ECONOMIC AND ENVIRONMENTAL SUSTAINABILITY: THE ROLE OF ECO-CLUSTERS Literature on green strategies emphasizes the relevance of enlarging the green approach beyond firms’ boundaries to include other economic players, such as the supply chain (e.g., Seuring & Müller, 2008). Since sustainability strategy usually requires a transformation in the inputs used for products or processes, as well as reorganization of the way the firm approaches manufacturing and sales processes, firms have also to develop a new “green” approach to supply chain management (SCM). In this perspective, research emphasizes how the management of environmental-related processes cannot be limited to the firms’ boundaries. Rather, it has also to include suppliers as key partners in the achievement of sustainability. Crucial SCM activities, such as supplier selection and monitoring, become even more important whenever the environment is concerned. Another related stream of studies focuses on value chains, which are able to include multiple players in the process of value creation based on green options in an industry-based framework (Jeppesen & Hansen, 2004). However, the analysis of the territorial dimension is also crucial in this respect since the spatial dimension of economic activities influences the scale of environmental impacts (local, regional, national or international). At the same time, the territories in which industrial activities are located hardly affect business initiatives towards sustainability due to the social context (Clini, Musu, & Gullino, 2008). From this point of view, other scholars have focused their analysis on how to promote sustainable economic activities by applying industrial ecology principles to economic systems through the 14 more pages are available in the full version of this document, which may be purchased using the "Add to Cart" button on the product's webpage: www.igi-global.com/article/clusters-green-driversenvironmental-sustainability/75534?camid=4v1 This title is available in InfoSci-Journals, InfoSci-Journal Disciplines Communications and Social Science. Recommend this product to your librarian: www.igi-global.com/e-resources/libraryrecommendation/?id=2