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Article

Building Clusters without Trust: Government as a Relational Architect in Industrial Cluster Formation

Details

Citation

Al-Tabbaa O, Saadatyar FS, Choksy U, Koghut M & Vazife Z (2025) Building Clusters without Trust: Government as a Relational Architect in Industrial Cluster Formation. European Management Review.

Abstract
Industrial clusters in developing economies often confront a paradox: engineered by state policy yet lacking the pre-trust and shared norms that drive organic networks. Drawing on two industrial clusters in Iran, we unpack how government actors become ¡°relational architects,¡± scaffolding structural and cognitive dimensions of social capital to seed collaboration where trust is absent. However, our study also warns that heavy©\handed, top-down site selections and mandated partner mixes can fracture the nascent bonds they intend to forge. In contrast, well-placed intermediaries and collaboratively crafted capacity-building forums can repair those fractures, allowing genuine trust to emerge¡ªthough only after sustained, state-mediated interaction. By questioning the longheld belief that trust must precede collective action, we demonstrate a reversed sequence: structural links and cognitive alignment can give rise to relational capital over time. These insights offer a cautionary implications for policy: instead of simply transplanting blueprints, policymakers must blend directive measures with authentic, context-sensitive facilitation if they hope to build resilient, trust-based clusters.

Keywords
Social capital; Structural capital; Cognitive capital; Relational capital; Government intervention; Industrial cluster; Developing economy

StatusAccepted
Funders
Date accepted by journal05/06/2025
ISSN1740-4754
eISSN1740-4762

People (1)

Dr Umair Choksy

Dr Umair Choksy

Senior Lecturer in Management, Management, Work and Organisation