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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—though 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