Policy-driven clusters, interfirm interactions and firm internationalisation: Some insights from Malaysia's Multimedia Super Corridor

This paper investigates the impact of social and business interactions on firm internationalisation within the context of an industrial cluster created from scratch by policymakers. Based on in-depth interviews with firms in Malaysia's Multimedia Super Corridor cluster, our findings suggest that a permanent cluster of this nature may not be able to stimulate the development of frequent, spontaneous, informal interaction and rich social networks often seen in ‘organic’ clusters, thus limiting the cluster's effect on firm internationalisation. However, the paper also shows that ‘temporary clusters’, such as trade shows and conferences, organised by policymakers on a regular basis within the broader context of the permanent cluster, can help firms to quickly acquire relevant knowledge.

► We study effect of interactions in policy-driven clusters on internationalisation.
► We focus on the case of the Multimedia Super Corridor cluster in Malaysia.
► Informal interaction and knowledge-sharing in these clusters is limited.
► However, policymakers can offset this by organising regular temporary clusters.