sustainability Article Beyond Apprenticeship: Knowledge Brokers and Sustainability of Apprentice-Based Clusters HuashengZhu1,KellyWanjingChen2andJunchengDai3,* 1 SchoolofGeography,BeijingNormalUniversity,19XinjiekouwaiStreet,Beijing100875,China; [email protected] 2 DepartmentofGeography,UniversityofWisconsin-Madison,550NorthParkStreet,Madison,WI53706, USA;[email protected] 3 SchoolofCultureandCommunication&CulturalEconomicsResearchInstitute, CentralUniversityofFinanceandEconomics,39SouthCollegeRoad,Beijing100081,China * Correspondence:[email protected];Tel.:+86-10-6226-8292 AcademicEditors:HongboLiu,SizhongSunandIainGordon Received:17September2016;Accepted:3December2016;Published:7December2016 Abstract: Knowledge learning and diffusion have long been discussed in the literature on the dynamics of industrial clusters, but recent literature provides little evidence for how different actorsserveasknowledgebrokersintheupgradingprocessofapprentice-basedclusters,anddoes not dynamically consider how to preserve the sustainability of these clusters. This paper uses empiricalevidencefromanantiquefurnituremanufacturingclusterinXianyou,FujianProvince, in southeastern China, to examine the growth trajectory of the knowledge learning system of an antique furniture manufacturing cluster. It appears that the apprentice-based learning system is crucialduringearlystagesoftheclusterevolution,butlaterbecomescomplementedandrelatively substitutedbytheroleofbothlocalgovernmentsandfocaloutsiders. Thisfindingaddressesthe contextofeconomictransformationandprovidesempiricalinsightsintoknowledgeacquisitionin apprentice-basedclusterstoquestiontherationalitybasedonEuropeanandNorthAmericancases, andtoprovideabroaderperspectiveforpolicymakerstotriggerandsustainthedevelopmentof apprentice-basedclusters. Keywords: local learning; knowledge brokers; apprentice-based clusters; antique furniture manufacturing;China 1. Introduction Theemphasisonstudyingtheknowledgemanagementofindustrialclustershasgraduallyshifted toclusterknowledgetransferenceandknowledgechannelsinknowledgenetworks[1]. Asachannel foracquiringandimprovingcraftsandskills,apprenticeshipsystemshavehadmuchsignificanceto local,traditional,craft-basedclusters. Insomeofthetraditionalindustriesofdevelopedcountries, apprenticeshiptraininghasexperiencedsignificantdeclineoverthelastthreedecades[2],however, itisstillpromotedduetoitsorientationonfirm-specificskillsanditslower,staggeredinvestment profile [3]. Moreover, in the newly emerging cultural creative clusters in developing countries (such as Dafen Oil Painting Village in Shenzhen, China [4]), apprenticeship is also a fundamental meansoflocalknowledgetransferwithinthecluster. Thisistheso-calledapprentice-basedcluster (“ABC” in abbreviation), characterized by high levels of non-market coordination and regulated throughconsensusbetweenemployers,tradeunionsandgovernment[5]. ManytraditionalABCs inthesecountrieshavereliedonfamily-ownedworkshopsorsmallandmedium-sizedenterprises (SMEs), and knowledge has mainly been shared between family members and passed down over manygenerations. Sustainability2016,8,1279;doi:10.3390/su8121279 www.mdpi.com/journal/sustainability Sustainability2016,8,1279 2of17 However,manyofthetheoriesontheknowledgedynamicsassociatedwithcreativeindustryare baseduponhigh-techorservicesectorslikethedesignandfilmindustries[6,7]. Thishasresultedin arelativedearthofunderstandingonthelearningsystemwithinsectorsthatfallintothecategory of “creative industry”, but are qualitatively different from those sectors that are often found in the metropolitan areas of an advanced economy. Biased empirical grounding could further skew theorizationforming“urbanbias”[7]. Bothissueshavebeennoticedandcriticizedinsomerecent works on craft-based creative industries, or on creative economies in rural or other less advanced settings[8,9]. ThispaperexaminesanantiquefurnituremanufacturingclusterinruralChina,which couldbeprojectedasacontinuationofsuchscholarlytendencies. Inaddition,muchattentionhasbeenpaidtoknowledgelearningsystemsmainlyderivedfrom high-techandcreativeclustersindevelopedcountries[1],ratherthancraftindustriesintheABCs. Asianexperiencesfromtraditionalindustrialclusters(ABCsinparticular)havemadelittlecontribution tothisresearch. Itiscurrentlyconsideredthatcontextsaretheoutcomeofclusterhistory,andthatthey inturnshapethepotentialtrajectoryofacluster[10]. Therefore,thispaperfocusesonABCswithin thecontextofChineseeconomictransformation,asubjectworthyofgreatconsideration,butwhich hasbeengenerallyoverlookedintherelatedresearch[11]. Since the end of the Cold War, together with other emerging economies such as India and Brazil, China has strengthened its position on the world stage as the “factory of the world” due toitseconomicgrowthandinstitutionaltransformation. However,inrecenttimesChinahasbeen facing increasing labor costs and competition from other developing countries [12,13], and both foreign-firm-dominating clusters and domestic-firm-driving cities have been attempting to make economicstructuraladjustmentsandindustrialupgrades,inordertoconstructa“creativesociety” andsustainregionalcompetitiveadvantages[14]. Inshort,Chinaisatacriticalstageofswitchingfrom apatternofahighgrowthratebutlowgrowthquality,tooneofgrowthwithhighquality. Insuch atransition,itisimportanttodocumentnotonlythechangeswithintraditionalsectors,butalsoto thosewithintheneweconomysectors[15]. Itishopedthattheneweconomysectorswillserveasa newengineforChina’sfurthergrowth. However,itisalsoverytruethatABCshavebeensignificantly under-representedintheliteraturesurrounding“neweconomies”. Lackingothernewchannelsof knowledgecreationandtransmission,ABCshaveencounteredseriouschallengestotheinherence and innovation of local traditional crafts and skills, and have declined in local sustainability [16]. ThegreatestchallengefacedbyABCsistheclosureofkinshipknowledgelearningsystems. Toopen upthisclosedknowledgesystem,itisurgentforABCstoupdatetheirknowledgelearningsystemsby meansofaknowledgebrokercapableofbuildingnewknowledgechannelsandofreconstructingthe regionaladvantagesofABCs. Above all, this paper would contribute to the debate surrounding China’s current economic transition from “made in China” to “create in China” from the standpoint of knowledge learning systemchangesonABCs. Itthusaddressesthefollowingresearchquestions: (1)Howtobreakthe relativelyclosedknowledgesystemofanABCthroughknowledgebrokers, whilestillpreserving thesustainabilityofatraditionalABCwithinthecontextofeconomictransformationinemerging economieslikeChina? (2)Howcanknowledgebrokersplayadynamicroleintheclusterlearning process?Inthenextsection,reviewtheliteratureonknowledgelearningsystems,especiallyknowledge brokers.Section3introducestheresearchmethodandacasestudy,theantiquefurnituremanufacturing (AFM)clusterinXianyouCounty,FujianProvince,China. Section4describestheevolutionprocesses oftheknowledgelearningsystemintheAFMcluster. Section5offerstheoreticaldiscussionsand policyimplications. 2. LiteratureReview Inthecurrentknowledge-basedeconomy,traditionalproductionfactorsarecurrentlynolonger enoughtosustainthecompetitiveadvantageofanindustrialcluster(IC);knowledgeisbeingcalled ontoplayakeyrole[17]. Overthepast20years,fourkeyapproachestoknowledgesystemshave Sustainability2016,8,1279 3of17 been discussed: (1) the knowledge-based approach; (2) the Science-Technology-Innovation (STI) andDoing-Using-Interacting(DUI)modesofinnovation;(3)theregionalinnovationsystems(RIS) concept;and(4)thelocalbuzzandglobalpipelinesargument[1]. However,thecoreweaknessesof theseapproachesarethattheyaremainlyderivedfrominnovationandcreativeclustersinEurope andNorthAmerica,whichcannotbetransplantedtodevelopingeconomies. Inaddition,empirical studiesontheconnectionsbetweenactorsfocustoaverylargeextentonstandardizedindicatorsof innovationactivities,suchaspatentdata,R&Demploymentorexpendituresetal.;whereaswithinthe contextofABCs,theseindicatorsarenoteasilyvalued,andtheimportanceoftheindividual,aswell their personal learning networks, tends to be neglected. Since many ABCs are transforming into innovationalorcreativeclusters,howtheirknowledgelearningsystemchangesduringtheprocess needsreconsideration. 2.1. LearningSystemofABCs Unlike the common utilization of mass production and the heavy reliance on machine tools in some manufacturing sectors, industries within ABCs mainly need delicate handicraft skills [9]. The apprentice system is still pervasive and widespread in developing countries. It is basically a smallscale,cottagesector,toagreatextentpassedfromgenerationtogeneration,andhassolvedthe socio-economicproblemsofboththeruralandthecountyeconomyatlarge[18]. Inthetypicalcaseof Houli’sSaxophoneClusterinTaiwan,theknowledgeandskillsofsaxophoneproductionhavemainly beenpasseddownbetweenfamilymembers,relativesandclosefriends. Kinshipcanbeseenasthe mainknowledgechannelforABCs. A line of literature also addresses the function of kinship in maintaining links to the place of origin. Inacasestudyofthediamond-cuttingindustryinIndia,Hennhighlightsthatglobalpipelines establishedbyfamilybusinessesareselective,andfamilynetworksoftransnationalentrepreneurs may form global pipelines [19]. Nelly and Bontis reported that strong family ties are needed to transmitidiosyncraticknowledge,andtheyfoundthatchangesinkinshipandinteractionsbetween individuals,thefamily,andbusinessnetworksaffectknowledgetransferandthenatureandflowof sharedinformation[20]. MustafaandChenclassifiedfamilymembersintofourcategoriesaccording tosocialdistanceandfoundevidenceofknowledgesupportfromimmediate,extended,anddistant familymembers,whichshowedthatknowledgeistransferablethroughkinshipandfamilyties[21]. These findings indicate that knowledge can flow informally through space driven by family ties. The family tie-based relationships are long lasting, require frequent contact to be activated, and providecapital,labor,emotional,andknowledge-basedsupporttotheABCs. However,itisarguedthatlocalizedlearningisnotenoughtosustainthelongstandinginnovation capabilityofaplace. Kinshiplimitsknowledgesharingamongfamilymembers,asshownbyearly workinthehigh-techindustryinSiliconValley,thefilmindustryinLosAngeles,andtheSwedish biotechnologyandIrishsoftwareindustries[22,23]. Theclose-knitkinshipandapprenticeship-based network retard the knowledge spillover to some extent, and the apprentice-based clusters have becomelethargicinadaptingtochangingenvironments,andlockedintoincreasinglylessdynamic developmentpaths[4]. Toavoidthislock-indanger,itisvitaltodiscusswhichactorscouldserve asapipelineforknowledgeflowbetweenaplaceandtheoutsideworld,andalsohelptheplaceto avoidbeinglockedinthenegativeeffectsofover-dependencyonkinship-basedlearninginABCs. Asaresult,moreandmoreresearchershaveshedlightontheimportanceofknowledgebrokers. 2.2. MainBodyandFunctionsofKnowledgeBrokers Knowledgebrokerscanbeunderstoodaspersonsororganizationsthatfacilitatethecreation, sharing, and use of knowledge [24]. Nowadays, the concept of knowledge brokers seems to be growing in importance in a variety of areas [25], such as “boundary spanning knowledge broker’ forengineers[26],andacademicbrokersinthescientificfields”[27]. Somestudiesevenarguethat “knowledgebrokeringisafundamentalcharacteristicofpostmodernprofessionals”[28]. Meyermade Sustainability2016,8,1279 4of17 abriefintroductionthatstatedthatthenotionofknowledgebroker,theplaceofbrokering,theorization regardingthepracticeofbrokering,andthebroker’spositionarethemostfrequentlyaskedquestions about knowledge brokers in the literature [29]. In view of the two core questions to be studied, thispaperfocusesonthemainbodyandfunctionofknowledgebrokers. Scholarsarguethatknowledgebrokersmightbeindividuals[30–33]ororganizations[34–37]. Inpracticalterms,universities,R&Dfacilities,financialagenciesandevenwholecountriesaresaid toactasknowledgebrokers[27]. TheseagenciesmightseemtohavelittleinfluenceonABCs,but it is important to not neglect that knowledge brokers tend to be invisible and take place “back stage”[38](p. 361). Therefore,itisnecessarytoreconsidertheroleoflocalgovernmentsinABCs, whichcanalsotakeontheresponsibilityofknowledgetransferasaknowledgebroker. Commonly, governmentsdevelopthecultureandinfrastructuretosupportacademicentrepreneurshipandthe commercializationoftechnologybyestablishingpublicresearchinstitutions[39]. Somealsoargue thatgovernmentscanpromotethedevelopmentofintermediateornetworkingorganizations[40]and supportthecollaborativesystembyestablishingsocialtiesandtrustbypromotinginteractionand engagement[41]. Thesetiescouldbringaboutanimprovementintheknowledgecapacityoflocal firmswithinthecluster.Moreover,temporaryclusters,suchastradefairs,professionalexhibitions,and conferences,havebeenprovedtobeeffectivechannelsforexternallearning[42]. However,theroleof localgovernment,especiallyindevelopingcountries,hasbeenneglected. Someresearcherspointout thatgovernmentshavelimitedcapacitytoestablishsuccessfulindustrialpoliciesandarguethatthe successofgovernmentsatfacilitatingclustersisquestionable,asshownbythecaseofHouli[9]. Classicperspectivesonindustrialclustersviewsknowledgeascirculatingspontaneously[43],and highlightthepresenceoffocalfirmswithinindustrialclustersplayingaleadingroleinthetransmission oftechnologyandknowledge[44,45]. Thepresenceoffocalfirmsinaclustersubstantiallyincreases knowledgespilloveratthelocallevel,bothbycreatingtechnologically-advancednewknowledge,and byfavoringtheabsorptionanddisseminationofexternalknowledgeintothecluster[46]. Inaddition, focalfirmsperformsearchingandtranslatingfunctionstoacquireexternalknowledge,whichthey convey to neighboring firms facing knowledge-related disadvantages due to a lack of external connections, and thus link the region with the outside world [28]. Here, we should not neglect onetypeoffocalfirm,namelythefocaloutsider,whichcanreferto(1)focalfirmsfromoutsidethe clusterlocation;or(2)localfocalfirmsthatareattheforefrontoftheirfieldbutactasa“layman”fora newsectortheyenterlater. Thelatterisreferredtohere. Thefocaloutsiderdoesnotunderstandthe industry’sknowledgeandskills,andisseeminglyunabletoeffectivelyassumetheroleofgatekeeper. Inturn,theywillbemorewillingtopooltogetherthedifferentformsofknowledge,transforming themintoanewknowledge,andvirtuallyassumingtheroleofknowledgegatekeeper. Itisworthyto studywhetherafocaloutsiderisaspoileroranintegratorinanindustrialcluster. Most studies recognize the key function of knowledge brokers as bridging organizations or gatekeepersthatmediatetheflowofknowledgeandinformationbetweentwounconnectedactors[47]. Someidentifiedfunctionseventranscendthemoretypicalmediatingfunctions,includingvarious combinations of functions and roles [48]. Hargadon and Sutton suggest two functions related to their network position: transferring and combining knowledge [49]. Other authors focus more on gatekeepers and identify three functions: searching external knowledge, transcoding it, and sharing it internally [50]. Oldham and McLean expanded the knowledge broker into three roles, namely knowledge managers, linkage agents, and capacity builders [51]. Boari and Riboldazzi developedthebrokeragetypology,includingthecoordinator(participantsandthebrokerarefrom thesamecommunity),representative(oneparticipantdeliberatesoverexchangeswith“outsiders”), thegatekeeper(thebrokeractslikealinkbetweenoutsidersandmembers),theliaison(thebrokeris anoutsiderwholinkscommunitiestogetherduringexchangeanddeliberation)andthecosmopolitan (amemberofacommunityactslikeabrokerbetweenmembersofothercommunities)[52]. Brokers canplaytheserolesindifferentfunctions,whichisnotasimplefunctionalclassification. Therefore, Sustainability2016,8,1279 5of17 itisnecessarytoexplorewhenandhowknowledgebrokersplayadynamicroleintheupgrading processofanindustrialcluster. 3. EmpiricalContextandMethodology Sustainability 2016, 8, 1279 5 of 16 3.1. StudyArea 3S.u Estmainpabiirliitcya 2l0 C16o, 8n, t1e2x79t a nd Methodology 5 of 16 ThispaperusesempiricalevidencefromanAFMclusterinXianyouCounty,FujianProvince, insouthe3a. sEtmerpniriccoaal sCtoanltCexht iannad (MFiegthuordeo1lo),gtyo testhowdifferentlocalknowledgebrokersareinterwoven 3.1. Study Area withclusterdevelopment. WeuseXianyouasatypicalcasebecauseitisfamousforitstraditional 3.1. STthuidsy p Aarpeear uses empirical evidence from an AFM cluster in Xianyou County, Fujian Province, in crafts,hasadominantshareinthedomesticmarket,andrepresentsanendogenousclusterinrural southeastern coastal China (Figure 1), to test how different local knowledge brokers are interwoven This paper uses empirical evidence from an AFM cluster in Xianyou County, Fujian Province, in China. Bweiitnhg csluhsoterrt doefvnelaotpumraelntr.e Wsoeu urscee sX,iaXniyaonuy aosu aC tyopuicnatly caussee bdectaoudsee pit eins dfamheoauvs ifloyr oitns taragdriitciounltaul re. Ithas southeastern coastal China (Figure 1), to test how different local knowledge brokers are interwoven madegrceraafttsp, rhoags rae dsosmininalonct ashladree vine lthoep dmoemnetstsici nmcaerkthete, a1n9d8 r0esprwesietnhtsi tasn beundrgogeeonnoiunsg clAusFteMr inc lruursatle r. Rapid with cluster development. We use Xianyou as a typical case because it is famous for its traditional developCmcrhaeifnntast,. hhBaaessin atg ad skohemonritn paolnfa tn csaehtuairnrea lti hnre etshoceul udrcsoetmse,e rXsstiiaicnn mcyeoaurtk hCeeto, umannitddy r-ue2sp0er0de0s teson, tdase napdne netdnh dehoeaganevnnilouyu aso lncp luargsotreidcru uinlct utriruoern.a Ilt v aluehas has made great progress in local development since the 1980s with its burgeoning AFM cluster. Rapid climbedfCrhoimna.0 B.5eibngil lsihoonrtR oMf nBatiunra2l 0r0es6outorc3es0, bXiilalnioyonuR CMouBntiyn u2s0e1d3 t,oa d6e0p-efnodl dheianvcirlye aosne a(gFriigcuultruere2.) .ItT hevalue development has taken place in the cluster since the mid-2000s, and the annual production value has addedbyhatsh misaAdeF gMreaat cpcroogurnestse idn lfoocral4 d0evpeelrocpemnetnot sfinthcee tGheD 19P80ins wXitiha nitys bouur,gaeonndinigts AfFuMrn cilutustreer. mRaapnidu facturing climbed from 0.5 billion RMB in 2006 to 30 billion RMB in 2013, a 60-fold increase (Figure 2). The development has taken place in the cluster since the mid-2000s, and the annual production value has represenvtaeldue6 0adpdeerdc ebnyt othfitsh AeFdMo macecsotuicntmeda rfkore t4s0h paererciennt2 0of1 3th.eI nG2D0P1 5i,nX Xiaiannyyoouu, haansdm itos rfeutrhniatunr2e 600AFM climbed from 0.5 billion RMB in 2006 to 30 billion RMB in 2013, a 60-fold increase (Figure 2). The firmswimthan1u2f0a,c0t0u0rinegm rpeploreyseeenste,dw 6h0i cphercmenati nolfy thdei sdtormibeusttiec imnatrhkeet Dshuawree iin, D20a1j3i., IBna 2n0g1t5o, uXivanilyloaug ehsas( Figure1). value added by this AFM accounted for 40 percent of the GDP in Xianyou, and its furniture Xianyoummwoaraneus tfnhacaatnmu r2ie6nd0g0 “ rAeCpFhrMeisn efenirtsmeeds C 6w0la iptshes ri1cc2ea0nl,t0 F0ou0f rtehnmei ptduloormyeeeeCssta,i cpw mihtaiacrlhk” emta snahidnarlyies idoni sn2ter0i1bo3u.f tIetnh i2ne0 tt1hh5e,r eXDeiaulnwayreogiu, e Dhsatajsri ,o sewood Bangtou villages (Figure 1). Xianyou was named “Chinese Classical Furniture Capital” and is one of classicalmfuorren itthuarne 2m60a0 nAuFfMac ftiurmrisn wgibtha s1e20s,0i0n0 Cemhipnloay(etehs,e wohthicehr mtwainolya rdeisDtriabcuhtee ning thine DHuewbeeii, DPraoji,v inceand the three largest rosewood classical furniture manufacturing bases in China (the other two are Bangtou villages (Figure 1). Xianyou was named “Chinese Classical Furniture Capital” and is one of DayonginGuangdongProvince). Dacheng in Hebei Province and Dayong in Guangdong Province). the three largest rosewood classical furniture manufacturing bases in China (the other two are Dacheng in Hebei Province and Dayong in Guangdong Province). (a) (b) (a) (b) Figure 1. Geographical location of Xianyou County, China. (a) Location of Xianyou in China; (b) Figure1.GeographicallocationofXianyouCounty,China.(a)LocationofXianyouinChina;(b)Main MFiagiunr teo 1w. nGse iong Xraipanhyicoaul lAocFaMtio cnlu osft eXri.a nyou County, China. (a) Location of Xianyou in China; (b) townsinXianyouAFMcluster. Main towns in Xianyou AFM cluster. Figure 2. Annual production of the Xianyou ATM industry, 2006–2013 (units in billions of RMB). Figure 2SF.oiugAurcnreen: 2Xu.i aaAnlnypnoruuoa Cld opuurcontdtiyuo cSnttiaootnifs totifch ste hDeXi vXiiasiainonynyo o(2uu0 A0A7T–TM2M0 1in4i)dn. udsturys,t r2y0,062–0200163– 2(u0n1i3ts (iun nbiitllsioinns obfi lRliMonB)s. of RMB). Source: Xianyou County Statistics Division (2007–2014). Source:XianyouCountyStatisticsDivision(2007–2014). Sustainability2016,8,1279 6of17 3.2. Methodology One of the main authors of this article comes from Xianyou County and has witnessed the transitionsoftheclusterovertime,andtheuseofthelocaldialectduringfieldresearchwashelpful whencontactinglocalfirmsandcommunicatingwithresidents.Thecasestudyincludedatotalofthree rounds. Weconductedanexploratoryinterviewatthebeginning,andderivedthispaper’sfocusfrom theresponsesoftheseinitialinterviewees.Onceaclearresearchdirectionwasidentified,weconducted tworoundsoffollowupinterviewstounpackthespecificityofthetwotypesofknowledgebrokers: thegovernmentandoutsidefirms. Themainissuescoveredinallthreeroundsofinterviewswerethe variousmechanismsthroughwhichknowledgeistransferredandinnovationisprovoked. Thefirstroundofinvestigationwasinitiatedin2011. Duringonemonthofextensivefieldwork, 6technicalexperts,4AFMfirmowners,and2localgovernmentofficialswereinterviewedtocollect informationaboutthehistoryandstatusofthelocalAFMindustry,andthelearningactivitieswithin andbeyondthecluster. Theintervieweeswereidentifiedbypersonalrecommendation,andtheywere highlyrespectedinlocalprofessionalfields. Eachinterviewlastedaminimumof45min. In 2012, 44 firms of various sizes were visited. Large and medium sized firms with a staff of morethan100peoplewereselectedandthencontactedamongthenamelistmadebytheauthors accordingtotheinitialinterviews,andeventuallyninefirmsacceptedtheinvitationforaninterview. ThroughrandomsamplingonthemainstreetsofXianyouCounty,theauthorsgotthepermissionof 13smallfirmswithastaffoflessthan100,and22family-ownedfactorieswithastaffoflessthan20, toparticipateinasemi-structuredinterview. Thebasicinformationofthese44interviewedfirmsis listedinTable1. Thisfieldworkaimstogathermoredetailedinformationoninternallearningwithina firm,knowledgebrokerswithintheclusterandtheirrolesinchangesinknowledgetransferamong localfirmsandthatbetweenlocalandtrans-localsources. Thisinformationwasobtainedthrough conversationsofatleastonehourwitheachownerormanagerofthe44firms. Keypointsfromallthe interviewswererecordedforrepeatedanalysis. Othersourcesofdatawerecollectedincludinglocal governmentworkingreports,localnewspapers,andtelevisioninterviewprograms. Table1.InformationfrominterviewedAFMfirmsinXianyouCounty. StaffSize No. Location No. RegisteredYears No. ≥301 3 Jiaowei 6 ≥10 5 101–300 6 Duwei 7 5–10 10 21–100 13 Daji 10 3–5 19 ≤20 22 Shima 4 <3 10 Bangtou 17 SalesModes No. TargetedMarket No. ProductionMode No. Self-operatingmarketingchannels 24 Local 14 Traditionalhand-made 19 Professionalsalesagencies 8 Firsttiercities 9 Modernlarge-scaleprodution 9 DependingonlocalotherAFMfirms 10 Alloverthecountry 21 Transitionalproduction 16 others 2 ThethirdroundofthesurveywasconductedinFebruary2014. Toassesschangesinproduction value,apprenticesystemandknowledgechannelsinthecluster,wemadeanin-depthinterviewwith 15representativefirms,approximately1/3ofthembeingfromthe44firmsinterviewedin2012. Allthe interviewedfirmsarecodedwiththeirtitle’sinitials. 3.3. KnowledgeoftheAFMCluster TheAFMclusterinXianyouisaprimecasefortheinvestigationofknowledgesystemupgrading. Withitstraditionalhands-onproduction,theAFMisatypicalapprentice-basedindustry. Mostlocal AFM-related knowledge has been passed down for generations through learning-by-doing and learning-by-monitoring among craftsmen. According to the survey, besides a large investment in high-priced rosewood, the two most crucial sets of knowledge that determined entrepreneurial potentialandafirm’sperformanceintheinitialstageoftheclusterweremanufacturingknow-how Sustainability2016,8,1279 7of17 (aboutmaterialidentifying,carving,andassembling)andmarketstatus. Thelocalmanufacturing chainwasseparatedintosixprocesses;theskillsorknowledgecontainedineachprocessarelistedin Table2. Table2.ManufacturingprocessesandskillrequirementofantiquefurnitureinXianyou. SkillStructure Process SkillsandKnowledge LearningTime ofApprentices ofselectingrawmaterials(including 1.Rawmaterialpreparation MostlyMA,someSMA Atleasttwoorthreeyears choiceofwood) ofcrackingoff,repairingdefective/cracked 2.Woodrepair timberbyfillingwithpiecescuttofitthe MostlyMA Atleasttwoorthreeyears size,color,andpatternofthedefect ofcuttingrawmaterialsintotherough 3.Carving MAonly Atleastthreeyears shapeofeachcomponent 4.Mechanicalprocessing ofextendingthepattern MostlyFA Almosthalfyear 5.Burnishingandpolishing ofburnishingandpolishingthefinalpiece MostlyFA Severalweeks MostlyML,someSMA 6.Installing ofcombiningdifferentpartsintoonepiece Halfayear andFA Source: Structured questionnaire in 2012. MA (mature apprentices), skilled apprentices who can work independentlyonallstepsintheprocess;SMA(semi-matureapprentices),skilledapprenticeswhocanwork independentlyonpartoftheprocess;FA(freshapprentices),apprenticeswhoworkonthesimplestprocesses undertheguidanceofothers. Amongthesixprocessesmentionedabove,rawmaterialpreparationandcarvingareconsidered themostknowledge-intensive. Theformerrequiresknowledgeaboutredwoodstructureandpatterns andcuttingskillstomakethebestuseofrawmaterials.Becauseofthehighpriceofredwoodresources, evensmallmistakescancausehugelossesfortheworkshops. Carvingskillandartistictalentare neededtoshaperawmaterialsintospecificcomponentsaccordingtotheproductdesign. Thelastthree processesinTable2requirerelativelylittleknow-howandcreativity; noviceworkerscanperform themindependentlyafterseveralweeks’training. In the hand-made stage, for an apprentice to learn all the processes usually requires a long time,atleastmorethanfiveyears. Whereasthemarketdemandisrelativelystable,withhandmade furniture preferred by the rich, the raw materials are always expensive, giving apprentices fewer chancesforpracticaloperationsandextendthetimerequiredforlearning-by-doing. However,with recentdevelopmentsinmodernfurnituretechnology,themarket-orientationhasalsochangedfrom high-endtocommonconsumerswhodonotvaluehandmadeskillsasmuch,andasaresult,theantique furnitureskillsrequirelesstimetolearn. Itisduringthisprocess—ofABCsfacingatransitionbrought onbytechnologicaladvancements—thattheroleofknowledgebrokersbegantobeemphasized. 4. DevelopmentPathofKnowledgeLearningintheAFMClustersinXianyou 4.1. PhaseI:IndigenousCreationandKinship-BasedLearningSystems 4.1.1. KinshipasaFacilitatingChannelforInitialKnowledgeLearning The idea that the dynamics and complexity of kinship bonds affect the learning processes of industrialclustershaveaddressedinseveralstudies[12]. Theestablishmentoffamily-ownedAFM firmsandtheirspinoffscontributedtotheoriginofthecluster.Localfirmsandindividualshadfrequent face-to-facecommunication,andan“industrialatmosphere”prevailed. Theirspinoffscontributedto theoriginsofthecluster. Allthespinoffsbasicallyinherittheirmotherfirm’sproductiontechnology and operation routines, and their kinship and then apprentice relationship informally construct a kindoflocalknowledgecommunity,comprisedoflocalfirmsandindividuals. However,thisalone did not facilitate the spillover of valuable knowledge. Our fieldwork revealed that in the initial stage,thediffusionofcoreknow-howandusefulinformationinfurnituremanufacturewaslimited to kinship networks, which acted as a bridge combining neighboring AFM firms that had related Sustainability2016,8,1279 8of17 founders,andthatthesenetworksalsoactedasawallthatseparatedfirmsandlimitedprofessional knowledgesharing. Generally,aworkshopanditsspinoffsconstituteadependent“kingdomofskills”, withdifferentworkshopsrarelyexchanginginformationandknowledge. Traditionally,closekinshipwithownersofAFMfirmsorexperiencedcraftsmenwasaprerequisite foranindividualbeginningacareerintheAFMindustry. Evenwithinfirms,workersdonothave equalopportunitiestoobtainknowledge. Itiscommonforyoungcraftsmentoworkindependentlyon moldcarving,whileolderworkersperforminstallationordetailing. On-siteinterviewsrevealedthat thecloserbiologicalrelationshipaworkerhaswiththeowner,themoretrusthecangain,andtherefore themoreopportunitieshehastolearncoreskills. InYBF,anAFMfirmwithatypicallytraditional operation system in Bangtou Village, a 23-year-old craftsman, the owner’s son, said, “You know, rosewoodisveryexpensivesoitmustbecutcorrectly,whichrequiresexcellentskill. EithermyfatherorImust behereeverydaytobeinchargeofrawmaterialpreparation. Myfathertaughtmethecuttingskillsone-on-one, andnowIamquitegoodatthis(process). Nooneelseinthefirmcoulddoitproperly”. Meanwhile,other craftsmen interviewed from YBF complained that they cannot acquire the most highly paid skills, simply“becausewehaveno(close)kinshipwiththeownerortheexperiencedcraftsmen”. As the core of a family-owned firm’s competitiveness, crucial skills are often kept within the family. Thecraftsman-ownerandotherexperiencedcraftsmenintentionallyinhibittheacquisitionof knowledgebynewworkerswhoarenotbiologicallyrelated,bysubtlebehaviorssuchasmaintaining separateroomsforkeyprocessestopreventobservation,byassigningtheseworkerseasiersteps,and byofferinglessusefuladvice. AstheownerofSFmentionedintheinterviewof2014,almostallofthe entrepreneursinBangtouVillagewerebornintoaristocraticwoodcarvingfamiliesgoingbackatleast fourorfivegenerations. Such kinship-based knowledge diffusion primarily occurs for two reasons. First, in agrarian communitieswithscarcenaturalresources,someindividualsderivetheirincomefromspecialskills. CoreAFM-relatedskillsacquiredovergenerationsarevaluedasafamilyheritage,andtheoriginal creativityisprotectedbytraditionaltransmissionchannels,i.e.,inheritance. Teachingcoreknowledge to individuals outside of the family can lead to increased competition. Second, learning by doing withinafamily-ownedfirmisatraditionalpathwayoflocalskilltraining. Suchin-housetrainingcan provideownerswithaneconomicreturnintheformoftrainingfees,aswellasinexpensiveoreven freelabor(youngpeoplethatareunrelatedtotheindustryownersmustpayfortheirapprenticeship). In addition, apprentices often perform extra household tasks and give gifts to owners on traditional Chinese holidays such as Spring Festival, Dragon Boat Festival, and Mid-autumn Day. Astheirskillsincrease,apprenticescangetpaidmore;eventually,someleavetoestablishtheirown workshopsiftheyhaveenoughcapitalandcustomerresources. Therefore,ownersgenerallyprolong thelearningprocessinordertogainareturnontheirinvestmentinthisinformalin-housetraining. Theimportanceofkinshipinknowledgeflowwasemphasizedintheknowledgecreationstageandthe familialnetworkactsasasocializationtoolthatinfluencestheintensityofengagementofindividuals tothefamily[53]. 4.1.2. LimitsinApprentice-BasedLearningSystemoftheAFMClusters Sincelocaldemandislimitedintheinitialstages,craftentrepreneursbuildandrelyheavilyon trans-localconnectionswithrelativeswhoimmigratedtoothercities,toestablishopportunitiesfor newbusiness. Therefore,amongskilledcraftsmen,onlythosewithextensiveexternalconnectionsare likelytosucceedintheirAFMbusinesses. Preexistinglong-distancenetworkswithmigrantsoflocal originprovideacrucialchannelforlocalindustrytoreachoutsidemarkets. Thesemigrantspurchase productsandprovidevaluablefeedback. However,attheendoftheformationstage,theXianyouclusterexperiencedlocallock-inand lackedcommunicationwiththeoutside. AsoneintervieweefromBJJmentioned,“Peopleweresatisfied bytheprofitmadebyfirmsofthissizeanddidnotwanttofurtherexpandthroughcontinuedinvestmentand Sustainability2016,8,1279 9of17 sustainableinnovation. Theywereafraidofpotentiallossincompetitivenessduetoexpansiontonewmarkets. Thisideawasmainlythepersonalopinionofsomeexperts”. Thisideameantthatfirmsweresatisfiedwiththeexistingstatusanddidnotadapttochanging market demand. The growth of the cluster slowed, in large part because of this complacency, which remains today on the part of some firm owners. During the semi-structured interviews, severalintervieweesexpressedconcernsaboutexpandingtheirfirmstothe“rightsize”. Becausethe AFMindustryisrelativelyuncommon,entrepreneurscouldnotborrowsubstantiallyfromprevious experienceandweremoresusceptibletomisinformation.Whenactorswithintheclustercannotdiscern thequalityoftheinformationtheyreceive,theco-locationoffirmsresultedinfrequentinterpersonal interactions,butdidnotresultinapositivelocalbuzzeffect[54]. Thisresultwasduetofactthatall membershadsimilarknowledgesets,whilecoreknowledgeortacitskillswerekeptinsideafirmasa secret. Thechaoticpiecesofinformationtheyexchangedeverydayweremostlyuselessandtheclosed knowledgesystemregenerated. 4.2. PhaseII:LocalGovernmentasaKnowledgeBrokerTakingPlace“BackStage” Unlike the common role of Chinese government mentioned by Gao, including driving the economy,seekingtoattractforeigncapital,openingmarketsandsoon[55],inthiscase,theXianyou government has tried to act as a broker for innovation rather than as a policy maker. All of the in-depthintervieweesagreedthatthemostinfluentialactperformedbylocalgovernmentwastopush knowledgespilloverfromoutsideofthecluster. 4.2.1. IntensifyingtheLinkagebetweentheLocaleandtheExternal Sincethemid-2000s,localgovernmenthasinitiatedrevitalizationprogramstostimulatefurther growthpotential. IntheEleventhFive-yearPlan(2006–2010)ofXianyou, theAFMtherewasfirst listedasapromisingindustrythatwouldbegivengreaterpolicyattention. Severaldepartmentswere established in the county government to be in charge of the AFM industry and to provide public services. The Professional Committee of Furniture in the Ming and Qing Dynasty, established in September2004asasubdivisionoftheChineseFolkCraftsmanAssociation,tookpartinprofessional communicationstoconnectXianyouwithotherregionsinChina, workingoutlocalstandardsfor classicalantiquefurnitureandfacilitatingtheinheritanceanddevelopmentoflocalknowledge. Ithasrecentlybecomepopularforlocalindustrialclusterstoestablishregionalbrands. Because regionalbrandsaregenerallyauthorizedbyhigher-levelgovernments,localgovernmentshavean advantageoverindividualsorfirmsintermsofpoliticalresourcesorconnections.TheXianyouCounty governmenthastriedtoconnecttorelatednationaladministrativedepartmentstoestablishregional brands with a “state prefix”. Xianyou was officially designated the “Capital of Chinese Classical Furniture”in2006. Meanwhile,localgovernmenthastriedtoincreasethecoherenceoftheclusterbyconstructing physicalinfrastructure.Onestreetreferstoa10-kilometer-longstreetofexhibitionhalls;FourCorridors referstofourconglomerationsofAFMfirmsalongXianbang,Laibang,Xiandu,andSanjiaoroads; TwoParksreferstoXianyouArtsandCraftsindustrialparkandXianzuoLogisticsPark;FivePlazas referstotheChineseclassicaltechnologyexpocity,Xianyouinternationaloilcity,Xianyoustonearts culturecity,Yonghongculturalcity,andtherootcarvingantiquecity. Althoughthereislittleevidence thatthisplannedinfrastructurewillenhanceknowledgespillover,itdoesincreasetheopportunityfor face-to-facecommunicationamonglocalfirms. Moreover,tradeandculturaleventsintheindustrial parksandplazasprovidepublicplatformsforprofessionalcommunicationandinformationcollecting, combininglocalandtrans-locallearning. Localgovernmenthasalsoemphasizedcraftsman-training programs. Adepartmentofwoodcarvingartswasestablishedinavocationalschoolandhasprovided studentswithAFM-relatedskilltrainingaswellasinternshipopportunitieswithlocalfirms. Sustainability2016,8,1279 10of17 4.2.2. TemporaryClusterandTrans-LocalLearning Theentrepreneursinterviewedagreedthatthemostinfluentialeventmarkinganeweraforthe AFMclusterinXianyouwascollectiveparticipationinanationalannualfurniturefairinBeijingin2006. Thefairwaslaunchedbylocalgovernmentafterayearofpreparation. Thiseventisviewedashaving promotednationalawarenessoftheXianyouAFMandashavingincreasedbusinessopportunities. Agovernmentofficialinchargeoforganizinglocalfirmsinthefairemphasizedthat“Xianyouwasnot historicallyknownforantiquefurniture... Manypeoplehadnoideathatantiquereplicafurniturewasmade inXianyouinthepast. Thishadcausedhugemarketingchallengesforourlocalfirms. Hence,atthattimethe governmentplannedtobuildastagefortheindustry. Atthe2006furniturefair,Xianyoubecameanovernight sensation,andourfirmsgotalotoforderstoo. Itwasabigsuccess”. Moreover,withtheestablishment of“Xianyou”asaregionalbrand,largenumbersofclientsstartedtovisitandinvestigatethecluster. TheownerofBGXinDajiVillageconfirmedthisinhisinterviewin2014,saying“... Saleswereno longerabigdealafter2006,becausealotofcustomerscameherewhowereattractedbythenameofXianyou. Regularcustomersalsointroducedmorenewcustomers. Youcouldevenhearpeopleonthestreettalkingabout orders,abigdeal,ornewcustomers”. The2006fairalsohadaprofoundeffectonclusterlearning. TheownerofSFAFMCompany, recalled that “It was the first time for most of us (participants from Xianyou) to have face-to-face dialogwithpeersfromotherregionsinChinaandevenabroad. Duringthefair,wevisitedanAFM companychainstoreinBeijing. Whatmostimpresseduswastheexquisiteshowroomwhereallthe furniturewastaggedwiththecompanybrand,andtheclearlymarkedpricesweremuchhigherthan ours. Wewereallthinkingthenthatweshouldmakesomechanges. Wecoulddothistoo—placeour productsinaniceroom,sellthefurniturewithourownbrand,andchargeabetterprice. Whynot?” Sincethelate2000s,localgovernmenthasorganizedtradefairsandculturaleventstofurther increaseitspowerinthenationalandglobalindustry(Table3),andithasencouragedlocalfirmsto attendtradefairsinotherregions.Professionaltradefairshaveincreasedcommercialopportunitiesand helpedlocalfirmstoestablishrelationshipswithnon-localagencies,whichhasledtolessdependence onemigrantrelatives. Table3.Localgovernment-initiatedpromotionalsince2009. Activity YearEstablished Partner(s) Purpose/Function Participants Topromoteinnovative ChinaArts&Crafts Inthesixthyear(2014), “YidingCup”:live techniquesinthe Association,FujianArts 27skilledwoodcarversfrom creativeChinese wood-carvingindustry, 2009,annual &CraftsAssociation, 10provinces(includingTaiwan, wood-carving communicationbetween CouncilofPutianArts& Zhejiang,andGuangdong) competition relatedindustries,and CraftsPlaza attendedthecompetition industrialconstruction. Morethan20localAFMfirms Toadopta“Xianzuo” havebeeninvolvedinthese marketingmodelin Xianyougovernment, promotionalactivitiesin ChinaTour cooperationwithauction 2012,irregular FujianArts& Chengdu,Beijing,Chongqing, of“Xianzuo” companies,topromotethe CraftsAssociation Shanghai,Guangzhou,Xuzhou, regionalbrandandtoseek andotherlargeand anewdevelopmentmodel medium-sizedcities. Morethan400professional Tosetupaninteractive participantsand100,000visitors platformforresearch, InternationalWood InternationalWood frommorethan70countriesand 2014 discussion,exhibition, CultureFestival CultureSociety regions;morethan5000pieces andcommunicationabout ofwoodenartwork woodculture. wereexhibited. Sources:[56–58]. Theterm“temporarycluster”usedheretodescribetrans-locallearningontheseoccasions,where thebuzzoftacitknowledgeisbelievedtoexistaswell[59].Relyingonthetemporaryclusterorganized bylocalgovernment,high-qualitytrans-localcommunicationwithexternalclientsandpeersensure thatlocalfirmscaneasilyaccesstechnologicalandorganizationalknowledge. Interactionsbetween firms coming from different places could engage in effective learning [60]. The temporary cluster
Description: