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Governance In Clusters: An Analysis From the Perspective of System Dynamics

Objective: The present study analyzes how the relation between the contextual, structural and instrumental dimensions of governance influence the evolution of productive agglomerations in the segment of gems and jewel. Method:  Qualitative-descriptive research was, therefore, undertaken, applying the multiple case study method on two clusters. Originality/Relevance : The research fills the gap found in the research on clustering and systems dynamics and with the prospect of obtaining more reliable results on the evolution of the cluster's trajectory. Regarding the systemic view of agglomerations, especially around the topic of governance, there seems to be space for a research that involves multiple variables. Results: In both cases, the existence of natural resources was fundamental for the flow of incentives from the public authorities and the support institutions, and for the definition of scope and cooperation, which resulted in positive results for the participants. Over time, it was seen that the perception of limited collective benefits on the part of the players and the weak coordination resulted in the formation of subgroups, with specific interests. Theoretical/methodological contributions: The study employs a system dynamics approach, that highlights a non-linear relation between elements of a system, since this approach has had limited application in existing studies on the governance dynamics of productive agglomerations. The empirical results confirm the influence of the dimensions of governance on the evolution of the agglomerations, demonstrated by the relationships between the elements that compose them, which can inform the construction of scenarios for designing and anticipating future trajectories of productive agglomerations.