ABSTRACT
Resource and capability variation is inevitable as firms, especially newcomers, have widely different sets of circumstances that they leverage for operational success. Recent research in the sociology of entrepreneurship has highlighted the role played by interpersonal networks, organizational structure and the broader institutional environment in shaping individual initiatives. The joint actions of firms in the cluster trigger new initiatives and encourages further specialization of activities. Networks are especially important in new markets since they provide parameters for both individual and inter-organizational interactions. As a cluster develops, the growing density of firms facilitates informal and formal relationships. Academic studies of wine regions in the United States have typically focused upon the growth of specialist firms in an organizational space that is separate to that occupied by generalist firms; or how firms pursuing high status aspirations within a sector can establish performance parameters that further endow reputation and legitimacy.
