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Collaboration in cluster-based firms as a source of competitive advantage: evidence from a footwear cluster

Paper aims: To analyze the potential to generate relational rents in cluster-based firms located in the Northeast region of Brazil. Originality: We developed a conceptual framework based on the primary sources of relational rents considering the characteristics of clusters. Research method: An explorative case study. Data were collected mainly by semi-structured interviews. Main findings: We developed propositions, demonstrating that geographic proximity has a strong influence in diverse sources of rents. Business trust and reputation have an impact on the development of relational rents. Absorptive capacity is a preservation mechanism since it allows firms to understand and absorb knowledge and information. Implications for theory and practice: Significant contributions are the research propositions developed through empirical evidence that can be testable in large scale. Cluster-based firms could share different types of resources bringing competitive benefits. Decision makers should make sure that when sharing internal resources it provides an additional advantage.