ABSTRACT
The growth of an industrial cluster is an outcome of a complex chemistry of an ensemble of mutually constituting causalities. The historical pattern of the accumulation of conditions and its continuous engagement with evolving changes gives rise to outcomes that are unique to specific clusters. And this synthesis between the inertia of existing endowments and external shocks defines the dynamics of an industrial cluster. Needless to say, this complex chemistry includes elements that are not only economic in the limited sense but involve factors that are cultural or sociological as well. This chapter brings to the fore the trajectory of growth of a knitwear cluster that appears to be one of the clearest examples of successful SME clusters in India. The cluster grew by becoming linked to global markets. Flexibility to respond to changing demand is maintained through a dense network of subcontracting units and ‘voice’ instead of ‘exit’ through various layers of associations provides space for dialogue and ‘consensual legitimacy’ in this cluster. The emergence of a number of mediating institutions along with close sociological ties within common caste identity creates an appropriate mix of ascribed and acquired characters that favor collective efficiency. The study of the Tiruppur cluster provides interesting evidence of perpetual joint action between owners, subcontractors, workers and public institutions, despite each of these having conflicting goals and contesting interests taken separately.
