Keep your friends close and at a distance : studying the structural network properties of a regional cluster and it’s broader ecosystem through social network analysis

2020

Regional clusters and ecosystems are increasingly becoming an important part of

many organizations’ and countries’ strategies for innovation and economic growth. In the

context of the Norwegian fintech industry, this thesis aims to investigate the structural

characteristics of the networks of interfirm relations that make up a regional cluster and the

broader ecosystems which it is embedded. This was accomplished by collecting data through an

electronic survey on the relations of both members and non-members of the regional cluster NCE

Finance Innovation and analysing these relations through the lens of social network

analysis (SNA). Our results indicate that the regional cluster members to a large extent have

relations outside the regional cluster’s boundaries. Moreover, the regional cluster

network exhibits hierarchical properties, where a few actors are significantly more connected, and

therefore potentially important for the network’s ability to diffuse information and

knowledge. We found that traditional financial institutions are highly central with regards to

every used centrality measure, which might suggest that the firm-specific characteristics

of cluster members to a degree can explain their level of connectedness. Our findings suggest that

SNA can be a valuable tool for researchers, cluster facilitators and policy

makers by exposing detailed information about the network properties of a regional cluster, such as

the distribution of influence and the efficiency of information flows.