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Combining Forces: The Attributed Effects of Creative Clustering on

the Individuals Involved

Name: Ralph Eijbergen Student number VU: 2590958 Student number UvA: 11429240 E-mail: r.h.eijbergen@student.vu.nl

Course: Master Thesis MSc Entrepreneurship (Joint Degree) Supervisor: Karen Verduijn

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Statement of Originality

This document is written by Student Ralph Eijbergen who declares to take full responsibility for the contents of this document.

I declare that the text and the work presented in this document is original and that no sources other than those mentioned in the text and its references have been used in creating it.

The Faculty of Economics and Business is responsible solely for the supervision of completion of the work, not for the contents.

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Abstract

The creative industries are a flourishing and fast-growing sector with a wide range of positive attributes. However, the individuals operating in the creative industries often face uncertainty as a result of their economically constrained position in an erratic environment. One way to potentially deal with this situation is creative clustering.

While creative clustering has been a subject of research, there is a lack of focus on the individual level. The aim of this thesis is to gain insight into the attributed effects of clustering, as depicted by those involved. As support, the theoretical framework of “Forms of Capital” created by Bourdieu is used. Additionally, the introduction of a dichotomy of types of clusters is proposed. A qualitative multiple case study with an interpretive nature was conducted in order to give a nuanced and fine-grained perspective. In total, thirteen individuals involved in creative clustering were interviewed and questioned about the attributed effects of creative clustering.

Results indicated that there is a vast range of effects of creative clustering, with the positive attributed effects outweighing the negative attributed effects. Bourdieu’s framework allowed to distinguish the attributed effect in clear forms of capital and discuss their interconnectedness. Additionally, the dichotomy made between the two types of clusters appears to not hold true. Hybrid forms show that the real world is much more integrated and difficult to delineate.

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Table of Contents

1. Introduction ... 1

1.1 Background ... 1

1.2 Research Question ... 2

1.3 Structure of the thesis ... 3

2. Literature Review ... 4

2.1 The Creative Industries ... 4

2.1.1 Entrepreneurship in the Creative Industries ... 5

2.2 Clustering ... 5

2.2.1 Creative Clustering ... 6

2.2.2 Local Clustering vs Geographically Dispersed Clustering ... 9

2.3 Resource Acquisition ... 10 2.3.1 Legitimacy ... 12 2.4 Types of Capital ... 13 2.5 Chapter Conclusion ... 14 3. Methodology ... 16 3.1 Research Design ... 16 3.2 Data Collection ... 17 3.3 Data Analysis ... 19 4. Findings... 20

4.1 Definition of Creative Clustering ... 20

4.1.1. Ambiguity ... 20

4.1.2 Key Notions ... 20

4.1.3 Type of People ... 22

4.2 Effects of Creative Clustering ... 24

4.2.1 Positive Effects ... 24 4.2.2 Negative Effects ... 27 4.3 Form of Capital ... 28 4.3.1 Social Capital ... 29 4.3.2 Human Capital ... 29 4.3.3 Cultural Capital ... 30 4.3.4 Symbolic Capital ... 32 4.3.5 Economic Capital ... 34

4.4 Local vs. Dispersed Clustering ... 34

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4.4.2 Geographically Dispersed Clustering ... 35 4.4.3 Different Effects ... 36 4.4.3 Hybrid Forms ... 37 4.5 Chapter Conclusion ... 37 5. Discussion ... 38 5.1 Research Questions ... 38

5.1.1 Definition of Creative Clustering ... 38

5.1.2 The Effects of Clustering ... 39

5.1.3 Local Versus Geographically Dispersed Clustering ... 40

5.1.4 Main question ... 42

5.2 Theoretical and practical implications ... 44

5.3 Limitations and suggestions for future research ... 45

6. Conclusion ... 46

References ... 48

Appendices ... 53

Appendix 1: The Interview Guide ... 53

Appendix 2: Asynchronous Interview ... 55

Appendix 3: The Respondents ... 57

Appendix 4: The Coding Scheme ... 58

Appendix 5: Coded Transcriptions of the Interviews ... 59

Respondent 1 (R1) ... 59 Respondent 2 (R2) ... 64 Respondent 3 (R3) ... 71 Respondent 4 (R4) ... 75 Respondent 5 (R5) ... 79 Respondent 6 (R6) ... 82 Respondent 7 (R7) ... 87 Respondent 8 (R8) ... 93 Respondent 9 (R9) ... 95 Respondent 10 (R10) ... 96 Respondent 11 (R11) ... 97 Respondent 12 (R12) ... 99 Respondent 13 (R13) ... 101

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1. Introduction

1.1 Background

The creative industries have been a fast-growing sector since the early 90s and include many different fields that fall under the umbrella of the term, such as film, design, music, arts, fashion and more. They contribute in aiding and advocating social inclusion and cohesion through cultural diffusion, creating meeting places and a shared discourse in all layers of society (Henry, 2007; Rae, 2007). The fact that the creative industry offers meeting places for uneven and diverse societies makes it an appealing sector for actors such as governments (Leadbeater & Oakley, 2005). Besides that, the creative industries have been argued for influencing cities’ developments, through higher rates of self-employment, tertiary education and greater workforce in jobs (Flew & Cunningham, 2010; Zheng, 2011).

A concept with similar effects on society is that of clustering. A lot of attention has been given to the localization decisions of companies and the consequences this has on economic growth. Perhaps the most known example of clustering is that of Silicon Valley, the technology hub in California. This success story has led to large efforts by policymakers and governments all around the world to seed regional entrepreneurship (Chatterji, Glaeser & Kerr, 2014).

This notion is not limited to one sector, and has therefore transferred to the creative industries as well. Branzanti (2015) for instance provides a literature review on localization economies and creative clusters, finding support for positive effects contributing to clustering of the creative industries. Entrepreneurship in the creative industries is said to add value, whether socially, culturally, economically or environmentally, to projects and other activities (Connor, Karmokar & Walker, 2014). Creative clusters tend to localize in urban areas and these groups contribute to creating thriving centers (Florida, 2003).

However, even though the creative industries are a flourishing sector, the individuals operating in the sector often face difficulties. Many actors in the creative industries are self-employed and are therefore forced to manage themselves. Additionally, entrepreneurs in the creative industries often come from economically constrained positions, which together with the erratic

environment creates uncertainty (Scott, 2012). Creative clustering might be one way to deal with these uncertainties, by offering a more stable environment with like-minded individuals.

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1.2 Research Question

While some research has been done on the clustering effects of companies, limited empirical research has been done on the attributed effects of clustering on a more individual level. For this reason, this thesis will use Bourdieu’s Forms of Capital as a support to determine what effects creative clustering has on the individuals involved, in order to see if clustering could be a way to deal with the uncertainty and economically constrained position of artists in the creative

industries.

The following research question has been set up for this thesis:

How does creative clustering influence the resource/capital availability of the individuals involved in these clusters?

The following sub-questions have been set-up to help answer the main question: • How is clustering defined?

• What are the effects of clustering?

• What are the differences between the effects of the two different types of clustering on individuals?

The purpose of this thesis is to gain insight into the perspectives of individuals on creative clustering. An interpretive approach is taken in an attempt to give a more fine-grained and nuanced picture of the attributed effects of creative clustering.

On a theoretical level, this thesis will address a research gap that has been addressed scarcely. While research has been done on aspects of creative clustering, such as agglomeration reasons, policy making and localities, empirical research on the effects of clustering on the individual level has been scarce. Besides that, a dichotomy between local versus geographically dispersed clustering, as done in this thesis, has not significantly been made before.

On a practical level, this thesis attempts to provide insight in how individuals in the creative industries can deal with the uncertainty they face in their sector. These individuals often try to make a living out of something that started as a hobby, and do not have the means to keep up their activities for too long without a steady income. Mapping the positive and negative effects of clustering could benefit them in determining if this would help them tackle the problem of being

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constrained resource wise and facing market uncertainties by being surrounded in a more stable environment with like-minded individuals.

1.3 Structure of the thesis

Chapter 2 provides an overview of the relevant literature about the main – and sub topics of this thesis. It will first describe the creative industries and what role entrepreneurship plays in these industries. It will then go into the concept of clustering. A definition will be given and also the dichotomy that is made between two types of clustering is elaborated. After that, the concept of resource acquisition is explained and Bourdieu’s Forms of Capital, which is being used as a guideline in this thesis, are mentioned and explained.

Chapter 3 provides an overview of the research design, types of data collection and how the data is used and analyzed. It provides a justification of the type of research done and provides insights in how this is conducted.

Chapter 4 discusses the results of the research conducted for this thesis. It will use the main concepts as set up in the literature review and connect these to the results from the empirical research done.

In chapter 5, I will elaborate on the answers of the research question(s). Furthermore, I will explain how the findings can be interpreted in light of prior literature. After that, the theoretical and practical contributions are discussed, as well as limitations and suggestions for future research.

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2. Literature Review

2.1 The Creative Industries

The creative industries were early on defined as “industries which have their origin in individual creativity, skill and talent and which have a potential for wealth and job creation through the generation and exploitation of intellectual property” (DCMS, 2001, p.5). This definition, however, made it difficult to precisely differentiate the sector from other sectors where

intellectual property (IP) also played a central role. Besides that, putting IP central would result in a focus on what was new, whereas this would exclude too many facets of the industry (Flew & Cunningham, 2010).

Over time, many different definitions and descriptions followed. Hartley (2015) describes the creative industries as where artistic expression is brought together with global markets, and suggests that it is most intense and productive in the dynamic surroundings of urban areas. This connects to Zheng (2011), who states that developments of these markets are often influenced by local conditions, such as regimes, cultures and economic factors (Zheng, 2011). Potts,

Cunningham & Hartley (2008) take an emergent market economy perspective in explaining the creative industries. They see it as a continuous open system where complex social networks play a coordination role – decisions to produce and consume are determined by what choices are made by others (Potts et al.,2008). Higgs, Cunningham & Bahkshi (2008, p. 18) take a more general approach, and define the creative industries as the collective term for “businesses focusing on creating and exploiting symbolic cultural products…or on providing business-to-business symbolic or information services in areas”.

The vast amount of perspectives, opinions and descriptions used could be a sign that it simply is very difficult to actually create a universally fitting definition for the creative industries. One reason could be that these industries are based on a complex interaction between production and consumption side – aspects that are influenced and shaped by a range of facets such as cultural values (Banks & O’Connor, 2009). While the discourse itself will not be the focus on this paper, it is important to recognize that it has implication for theory, industry and policy analysis (Cunningham, 2002).

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2.1.1 Entrepreneurship in the Creative Industries

When looking at entrepreneurship in the creative industries, numerous definitions are applied to describe entrepreneurial activity by actors in the creative industries. Current discourse makes use of varying terms, where cultural and creative entrepreneurs are most used. Both relate to

entrepreneurial activities of the cultural and creative industries, where opportunity recognition, evaluation and exploitation play a central role (Haussman & Heinze, 2016).

De Bruin (2005, p. 145) defines entrepreneurship in the creative industries as “the process of adding value to creative inputs/creativity”, emphasizing an entrepreneurial value-chain. Scott (2012, p. 243) describes a cultural entrepreneur as an actor incorporating three elements: 1) creating new cultural products, 2) assessing opportunities and, 3) they have to find innovative ways of doing so due to their resource constrained market position. Lange (2009, p. 260) uses the term culturepreneur, for an individual who mediates between fields of culture and service provision, such as creative entrepreneurs running record stores or art galleries. Similar to this is the term arts entrepreneurship. Chang and Wyszomirski (2015) define this as the process through which individuals search for support for their creativity. Wedemeier (2010) focuses on the type of people and describes “creative professionals” as the group of actors working in the fields of education, engineering and arts, taking a broader perspective.

Many actors in the creative industries are self-employed and are therefore forced to manage themselves. This means that the industry heavily depends on artistic impetus, which is often erratic and unplanned (Eikhof & Haunschild, 2006). Additionally, entrepreneurs in the creative industries often come from economically constrained positions, which together with the erratic environment creates uncertainty (Scott, 2012).

One might ask if an artist could be treated an entrepreneur, as the sector mainly entails the artistic output of (groups of) individuals. This depends on the discourse and who is considered to be an entrepreneur. Besides that, creativity on its own already is a fuzzy concept that is difficult to define (Markusen, 2006).

2.2 Clustering

Clustering can be defined as the spatial agglomeration of related firms and is characterized by its internal embeddedness and interconnectedness. Firms in clusters however not only co-operate,

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but also compete (Porter, 1998; Feldman, Francis & Bercovitz, 2005; Audretsch & Keilbach, 2007; Potter, 2009).

Entrepreneurs stimulate cluster formation and through that regional competitive advantage, by shaping local habitat and building establishment that help further the common interest of an (emerging) industry (Feldman et al., 2005). It is co-location that allows to increase awareness and reduces uncertainty, and could reduce the cost of discovery and commercialization (Feldman & Martin, 2005). Besides these advantages, clusters could reduce entry barriers, stimulate knowledge spillovers, and provide a strong competitive advantage as a region (Delgado, Porter & Stern, 2010; Chatterji et al.,2014). Overall, there seems to be unity in thoughts about the positive effects proximity has on industrial growth in competitive regions (Kenney & Von Burg, 1999).

Two main effects at work in forming and maintaining clusters are density and network effects. Density reduces distances and raises opportunities to meet face to face in a more frequent manner, relating to tacit knowledge spillover. Network effects are based on the notion that each node in a network adds to the value of both the individual nodes as the network as a whole (Katz & Shapiro; 1985; Wood & Dovey, 2015).

History has shown that it is hard to replicate or establish clusters by command. This is because of the fact that clusters are not created through linear processes, but rather through flexible and self-organizing behavior of entrepreneurs. These entrepreneurs in turn rely on local environment, such as government or institutional support. Establishing clusters takes time and building one has no guarantee it will last. Even more, the local environment of a cluster is shaped through active learning and experimentation, creating an everlasting evolving structure (Feldman et al.,2005). Not only the fact that clusters have their own interdependencies and embeddedness – which is very much unique per cluster – but also the fact that there are many different views on what clustering entails in the literature makes it hard to reach generic conclusions on clustering. The variety of research designs used over the years show a diverse range of level of analysis, criteria and measurements (Rocha, 2004).

2.2.1 Creative Clustering

Similar to clustering in other industries, clusters in the creative industries come in many forms and are shaped by local resources and forces present in the environment they operate. They tend

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to localize in large and medium urban and/or metropolitan environments (Lazzeretti, Domenech & Capone, 2010).

This reflects with Florida (2003), who sees, as what he describes, the creative class as key to economic growth and focusing on the human side and its habitat and localization. The “creative centers” he mentions mostly choose specific urban areas to agglomerate and they, as a group, contribute to thriving centers. Creativity being seen as an endless resource might explain the popularity of creativity-central clusters and strategies (Marková, 2014).

The rapport of the New England Council (Council, 2000, p.4) defines creative clusters as “those enterprises and individuals that directly and indirectly produce cultural products (commercial and nonprofit industries)”. Van Heur (2009) describes the term creative clustering as a shorthand to define creative production and urban location, but notes that it is a tricky definition due to the fact that the term contains all forms of creative production. The nature of clustering differs based on specific activities and environments. For example, clusters focused on fashion and clusters focus on music could both be called creative clusters, but could very well have very distinctive dynamics (Kong & O’Connor, 2009). Foord (2013) also notes that not all localities can become creative places benefitting from the advantage implied. Add the ambiguity of the concepts used – “creativity” and “clusters” – and one can see why it is a puzzling phenomenon. Yet, creative clustering gathers high attention (Kong & O’Connor, 2009).

Creative industries could cluster to benefit from knowledge spillovers, to exploit a skilled market, or to connect to local specialized suppliers in the same sector (Lazzeretti et al., 2010). Clustering also stimulates collective learning, as it is individuals, rather than firms, that hold the information (Foord, 2013). This connects to the density and network effects as mentioned earlier, as these effects are seen as especially crucial in the creative industries due to the role of

innovation and flows of ideas (Wood & Dovey, 2015). However, O’Connor & Gu (2010) state creative clusters entail more than just economic gains: it is also about the reflective engagement with social and cultural aspects by being embedded not only in a respective environment (the cluster) but also outside of that (urban area) (O’Connor & Gu, 2010).

With all these perspectives on clustering and creative clustering in mind, I define creative clustering as follows: creative clustering is the gathering and continuous engagement of like-minded individuals, or groups of individuals, in the creative industries who are interested in

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similar ideas, goals, or other outcomes. The main attributes are the embeddedness and interconnectedness of those actors operating in these clusters.

Now that a definition has been established, I want to further describe existing literature about this topic specifically as creative clustering has such a central role in this thesis,

Extensive literature can be found on the spatial agglomeration of creative activity. Marshall (1920) was one of the first to state an explanation of why firms could be found in the same area, namely for information flow and ideas, reduction of transaction costs and the creation of a local group of specialized activity (Marshall, 1920). The focus on the factors leading to concentration of industries in clusters and agglomerated activity in cities can be defined as agglomeration economies or external economies of scale (Rosenthal & Strange, 2004). The creative industries are influenced by agglomeration economies as they support incubation and attraction of these industries in specific places (Gong & Hassink, 2017). Two main elements can be distinguished within agglomeration economies: localization economies and urbanization economies.

Localization economies is a concept with a key idea that concentration of firms in the same industry create external benefits for these firms. Main reasons given for this are access to specialized buyers and suppliers, a specialized work pool and knowledge spillover (Gong & Hassink, 2017). Plenty of authors have written about these effects of localization (e.g. Storper, 1995; Scott, 2006; Lazzeretti, Boix & Capone, 2008; Grodach, Currid-Halkett, Foster & Murdoch III, 2014; Gong & Hassink, 2017). Urbanization economies focus on creativities centering in cities, as they provide conveniences other places cannot provide. The quality of place is a key concept here. Glaeser, Kolko & Saiz (2001) and Florida (2003) were amongst the first to write publications about the concept of urban economies. After this, others followed to write about the effects and reasons of creative clustering in urban areas, mostly set in their own specific local settings (e.g. Yusuf & Nabeshima, 2005; De Propris, Chapain, Cooke, MacNeill & Mateos-Garcia, 2009; Wenting, Atzema & Frenken, 2011; Gong & Hassink, 2017).

Another stream in the literature focuses on creative clustering and (urban) policy making that promotes and supports the development of the creative industries. Support for creative clusters is becoming more and more popular, but more detail is needed within the policies that are created (Foord, 2009). Evans (2009) presents a critical view with an international study of creative industry policies and strategies, emphasizing a problematic clash when rationales and evidence

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become strained, creating policies that do not represent the actual clusters. This coincides with Jayne (2005) who states policies can be quickly inadequate when there is no elaboration how the creative industries operate specifically.

While the above studies focus on the rationale of where to cluster, the effects clustering has on areas, and the (urban) policy making involved, I focus on the creative individuals and the effects clustering has on them. Heebels & Van Aalst (2010) also focus on the micro level of the creative entrepreneurs involved in clustering, researching which aspects of an urban environment are important. This is similar to Drake (2003), who studied how localities can be a catalyst for the creative processes of individuals. Both came to the conclusion that the location specifically affects the creativity of the creative entrepreneurs involved. Wong (2012) studied which hard and soft factors play a role in attracting individuals to converge in a creative cluster.

2.2.2 Local Clustering vs Geographically Dispersed Clustering

Researching clustering, I noticed that scholars mention or emphasize on the spatial aspect of clustering. That is, the localization of individuals or companies is central to their views on clusters. However, a new type of agglomeration in my opinion has surfaced, where units have the internet as their birthplace, and thus are not clustered spatially per se.

Music collectives such as Soulection, Hegemon, Flow-Fi and Moving Castle are prime examples of this new form of clustering. They operate as collectives, but their individual members are not necessarily all located in the same geographical area. Their unifying trait is that they embrace a community-influenced delivery, creating platforms of their own. Because of this they cannot simply be categorized as a record label, agency or any one form of organization. Rather, they became movements of their own, utilizing the modern internet in their everyday activities (Calvano, 2015).

For this reason, I would like to make a dichotomy in types of clustering between local clustering, and, a phenomenon that I would depict as, geographically dispersed clustering. Local clustering is similar to what the majority of literature describes: spatial agglomeration of individuals or groups of individuals. The main thing that is shared in local clustering is the geographical location. Geographically dispersed clustering, however, is characterized by the fact that the individual members are not necessarily all geographically in the same area. Instead, they share a

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different aspect, a binding element, that together connects them, such as the name they operate under. Figure 1 illustrates how the two types differ from each other.

Figure 1: Illustration of Local vs Geographically Dispersed Clustering.

Note that the definition of clustering used for this thesis, as described in “creative clustering” above, still holds: both local clustering and geographically dispersed clustering can fall under this definition. Central in both occasions are still the interconnectedness and embeddedness; the biggest difference is their locations relative to others in the cluster.

Examples of local clustering are locations such as creative quarters, work spaces or hubs, where individuals work in an environment with like-minded individuals. These are often constructed in a way that allows the individuals who work there to connect with others. Another form could be creative groups, where multiple individuals work towards the same goal from a shared location. Exemplary of geographically dispersed clustering are Soulection and Moving Castle. These are collectives consisting of producers located all over the world. However, they all share a binding element other than location, such as the name or movement that they have created within their respective areas.

2.3 Resource Acquisition

When an individual, based on his or her available entrepreneurial knowledge, recognizes something as an opportunity -whereas others might not – the individual will act upon this. Thus,

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entrepreneurship in general is about the detection of opportunities and the willingness of individuals to pursue these opportunities, by themselves or inside an organization (Shane & Venkataraman, 2000; Stevenson & Jarillo, 1990/2007).

In the creative industries, at the basis of this concept are the individuals who gather knowledge and store this (tacit) knowledge combined with their creative aspirations. To reach their (creative) goals, actors in the creative industries often are in need of abilities and resources that go beyond what they have and/or can do (Scott, 2012).

Resources can essentially be split up in two categories: tangible and intangible resources. Tangible resources are those that are seen as having financial or physical value and are included in a firm’s balance sheet; intangible resources are those that are non-physical and are rarely added to a balance sheet (Galbreath, 2005). Taking Hall’s (1992) approach to conceptualize, intangible resources can be described as either assets or skills. Assets include intellectual property, organizational assets (such as culture) and reputational assets. Skills include capabilities and knowledge (Hall, 1992; Galbreath, 2005). Additionally, as proposed by

Mosakowski (1998), intangible entrepreneurial resources could also entail concepts as creativity, foresight, intuition and alertness.

Coming from economically constrained positions, entrepreneurs in the creative industries need to gather resources in order to build their careers. As stated, they often do not possess the necessary resources themselves, individuals will contact with other (un)established entrepreneurs in order to gain the requisite skills and resources (Scott, 2012).

Acquiring resources, which entails “finding investors, employees, associates or customers” (Zott & Huy, 2007, p. 70), is a challenging activity for entrepreneurs for several reasons. As these entrepreneurs are in a nascent state, without a track-record, it is hard to demonstrate their quality (Zott & Huy, 2007). Amit, Brander & Zott (1998) state that asymmetric information between entrepreneurs and resource holders, in the forms of adverse selection (one party has more or different information than the other) and moral hazard (behaving different than expected), makes it even harder as this leads to more reluctance of the resource holders to invest and commit. This is also described as the liability of newness and smallness (Rutherford, Buller & Stebbins, 2009). There are different means entrepreneurs can use to acquire resources. A social tie (or network) approach centralizes an entrepreneur’s (in)direct connections in facilitating potential resource

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providers. However, research on this approach has failed to extensively describe the processes by which relationships are leveraged (Martens, Jennings & Jennings, 2007). Signaling quality is another way, which has been discussed above.

There are different types strategies one can take in acquiring resources, namely borrowing, begging, scavenging and amplifying (Starr & MacMillan, 1990). Borrowing means using assets or resources with assumptions they will be returned later; begging means targeting someone’s honor, goodwill or charity of the owner of resources; scavenging entails using goods that others shy away from or do not want to use; and amplifying is the ability to leverage more value out of resources than others (Starr & MacMillan, 1990).

2.3.1 Legitimacy

Legitimacy plays an important role in resource acquisition. Legitimacy can be defined as “a generalized perception or assumption that the actions of an entity are desirable, proper, or appropriate within some socially constructed system of norms, values, beliefs, and definitions” (Suchman, 1995, p. 574). Drori, Honig & Sheaffer (2009) state external legitimacy is a necessity to attract customers and clients and to acquire resources. De Clercq & Voronov (2009) also mention legitimacy as being important in resource acquisition. They state that newcomers’ capability to meet a field’s expectations allows them to “fit in”. The current position of an entrepreneur in their respective field, shaped by their legitimacy, influences their access to field-specific capital (De Clercq & Voronov, 2009). Lounsbury & Glynn (2001) coincide with this view, explaining legitimacy comes from the cultural support of a new venture. This support, and thus legitimacy, in turn enables the acquisition of resources. To approach the problem of uncertainty, entrepreneurs need to make clear how their ideas and needed resources will benefit others. They emphasize the importance of stories, or entrepreneurial narratives, that can lead to favorable interpretations of the venture or entrepreneur (Lounsbury & Glynn, 2001). Martens et. al (2007) build on this. They define entrepreneurial narratives as “the stories that are told about entrepreneurs and/or their firm” (Martens et al., 2007, p. 1109) and state effective stories most definitely help in acquiring the necessary resources to exploit opportunities.

Overall, gaining legitimacy is an important means for entrepreneurs to establish themselves (Clegg, Rhodes & Kornberger (2007). By gaining legitimacy, entrepreneurs can tackle the problems that are accompanied with being in a nascent stage. Rutherford et al. (2009) however have pointed out that ethical behavior is key. Entrepreneurs may be overconfident, have

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misstated fact due to incomplete due diligence, or have been careless in seeking legitimacy (Rutherford et al., 2009).

2.4 Types of Capital

A way of approaching resources is by looking at it as capital.

Economic capital is the most straightforward type of capital and entails the assets that are “immediately and directly convertible into money and may be institutionalized in the form of property rights” (Bourdieu, 1986, p. 242). This means economic capital includes goods, property and resources.

Human capital represents tacit and explicit knowledge which can be used to develop a specific skill set. Through this, the knowledge and skills can help entrepreneurs by identifying and pursuing identified opportunities (Davidsson & Honig, 2003). While human capital partially is nature to individuals, it can be nurtured through education, training, processes of socialization and interactions with complementary individuals (Storper & Scott, 2009).

Besides economic and human capital, Bourdieu (1997) introduced additional forms of capital: cultural, social and symbolic capital.

Cultural capital includes manners and attitudes as a result of cultural historical knowledge. There are three different types of cultural capital: the embodied state, objectified state and institutionalized state. In the embodied state, cultural capital includes behavior, habits and actions. In the creative sector, this would include the certain skills an artist has and relates to one’s cognitive knowledge. Cultural capital in this state can be acquired, but this heavily depends on the period, class and society one becomes part of, and it often happens unconsciously

(Bourdieu, 1997; Scott, 2012). The objectified state consists cultural capital being apparent in material objects and media. For the creative industries, the objectified state would consist of media and material objects (such as records and paintings) (Bourdieu, 1997; Scott, 2012). Finally, the institutionalized state refers to qualifications and educational diplomas that exemplify competence and knowledge (Bourdieu, 1997).

Social capital focuses on an actor’s network and social contacts, and the acknowledgement and recognition it brings. It entails the commitments and constraints of these social networks through knowledge transfer or obligations due to interacting (Bourdieu, 1997; Scott, 2012).

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individuals and groups are what constitutes social capital, whereas Bourdieu thinks it an actor’s external network that gives access to capital (Westlund & Bolton, 2003). Both definitions mainly mention positive effects of social capital, but Portes (1998) shines a different light on the

concept, by stating negative consequences of social capital including exclusion of others and restriction. Cooke & Wills (1999) operationalized the concept of social capital by introducing the terms integration, synergy, integrity and linkage as criteria. Westlund & Bolton (2003) add by including (spatially bound) norms, values, knowledge, preferences as measures.

In this thesis, both possible positive and negative effects of social capital will be taken into account. A lot of the measures introduced, e.g. those of Westlund & Bolton, relate strongly to the embodied and objectified states of cultural capital as described earlier, making it difficult to draw one distinct line. To create a dichotomy between the two, social capital will be treated as (the effects of being part of) networks formed by actors, whereas cultural capital is directed more towards promoting social mobility.

Symbolic capital, according to Bourdieu (1997), is essentially how economic, cultural and social capital become meaningful and effective in society. Bourdieu & Farage (1994) define symbolic capital as: “… any property (any form of capital whether physical, economic, cultural or social) when it is perceived by social agents endowed with categories of perception which cause them to know it and to recognize it, to give it value” (p.5). Translating this to something more definite, it includes measures such as reputation, legitimacy, prestige, vision, fame and honour as abilities to stand out (Bourdieu & Farage, 1994).

To Bourdieu (1997), the above capitals are all transformed forms of economic capital. In

Bourdieu’s theory, habitus is a key concept. Habitus refers to the norms, values, and patterns that guide certain behavior and ways of thinking, which influences the actions and choices of

individuals in a field. This can happen through socialization, where shared beliefs and orientations are constructed, but it is also influenced by the individual characteristics of the individual (Bourdieu, 1990).

2.5 Chapter Conclusion

This chapter provides an overview of existing prior literature relevant to the research topic and question of this thesis. There are several elements that I will take with me specifically. First, it is valuable to know that the concepts of creative industries and clustering both are very context

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specific. Many different perspectives and definitions are used to describe both phenomena. This is something to take into account when conducting research. Secondly, the definition of creative clustering that I made, based on prior literature and personal analysis, will play a central role in conducting the research. Thirdly, the framework of forms of capital (Bourdieu, 1997) will be prominent throughout this thesis, in an attempt to better characterize the effects of clustering. Finally, the position of individuals in the creative industries and the dynamicity and uncertainty they face are connected to creative clustering as a possible solution for this.

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3. Methodology

This chapter describes the research design and data analysis of the study that was conducted. The purpose of the study is to understand the attributed effects clustering in the creative industries has on the individuals involved, and to explore if there are differences between the effects local - and geographically dispersed clusters in the creative industries have on these individuals. Because the subject involves complex organizational processes that may change over time, this thesis has followed a qualitative case study approach to further identify and describe the phenomena (Baxter & Jack, 2008; Curry, Nembhard & Bradley, 2009).

3.1 Research Design

The format of a case study for this thesis was chosen for a variety of reasons. Firstly, a case study was chosen because of the how/why nature of the research question; secondly, the behavior of those involved could not be manipulated and; thirdly, the cases could not be considered without their respective contexts. According to Yin (2003) these points are all grounds on which a case study could be conducted. Because of the interpretative nature of the research, and the comparative goal to explore differences and similarities between two types of clustering, a descriptive multiple-case study has been chosen. This nature allows to describe the phenomenon of creative clustering from different perspectives, whereas the multiple-case approach allows to replicate findings across cases (Yin, 2003; Baxter & Jack, 2008). As the attributed effects of creative clustering on an individual level has not been covered extensively in current literature, and therefore is a fairly new topic to be explored, a qualitative case-based approach is suited for initial theory building and/or to strengthen groundings (Eisenhardt, 1989). A comparison is made between local clustering and geographically

dispersed clustering as cases. Data has been gathered from different individuals from both types of clustering. This means multiple units, as example of their phenomenon, have been studied to understand the differences and similarities between local – and geographically dispersed clustering.

Evidence from multiple case studies are seen as stronger and more reliable than single case studies, as they allow a broader range of discovery through different empirical evidence

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more detailed descriptions, multiple case studies allow to explore the broader picture (Eisenhardt & Graebner, 2007).

Yin (2009) states multiple case studies can be either holistic or embedded. Embedded case studies analyze units that share a specific context; holistic case studies focus on individual cases within a specific context. For this thesis, the units analyzed are individual cases within their own specific context of either local clustering or geographically dispersed clustering. Therefore, this thesis has a holistic multiple case study approach with an interpretive and comparative intend. However, a qualitative case study approach has its downsides. Eisenhardt (1989) states that researchers may be “overwhelmed” by the volume of the data, as it often is complex and detailed making it difficult to keep a focus. To overcome this problem, Eisenhardt (1989) suggests to overlap data collection and analysis. This speeds analyses and exposes helpful adjustment along the way (Eisenhardt, 1989). Another drawback is that qualitative research faces the problem of generalizability compared to quantitative research (Yin, 2009). To counter this weakness, Siggelkow (2007) states that case studies can be a motivation for further research and inspiration for new ideas to scholars. Additionally, they can be illustrative examples of certain theories or thoughts (Siggelkow, 2007).

3.2 Data Collection

Multiple types of data collection (triangulation), and thus multiple types of sources, were used in conducting the research in order to ensure exploration from multiple perspectives. Triangulation is considered valuable because it allows an expanded scope, it deepens understanding and it supports consistent interpretation (Tracy, 2010). For this thesis, I have used the following ways to collect data:

1.

Semi-structured interviews

Semi-structured interviews, with a general interview guide approach, were conducted because of the different contexts involved with each person that was interviewed. A general interview guide approach allows the researchers to ensure that the same general areas of information are gathered from each interviewee, but gives the interviewer a certain degree of flexibility and adaptability in conducting the interviews (McNamara, 1999; Turner III, 2010). Because of this freedom,

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necessarily strictly part of the set-up questions (Patton, 1990). Meanwhile, this approach gives more focus than an open-ended interview approach (McNamara, 1999; Turner III, 2010). Interviews were conducted in person or over Skype, depending on the location and/or preference of the person that was interviewed. The general interview guide that was made can be found in the appendices of this document.

2.

Asynchronous interviews

Not all interviews were conducted in person or over Skype in real time due to physical distance or personal preference of the interviewees. To still ensure answers could still be gathered from these interviewees, asynchronous interviews over e-mail were done. Asynchronous interviews are semi-structure in nature, meaning follow-up questions are usually asked (Meho, 2006). In gathering my data this way, I created a word document with background information about my subject and questions that was sent to the respondents. The questions were set up to have a follow up questions already included, such as “for what reasons do you believe this?” or “could you elaborate?”. In some cases, follow up e-mails were sent to ask for clarification. The background information, including definitions and the purpose of this thesis, was added to the document to ensure interviewees would have all the information necessary to answer the questions. This way, answers like “I do not know what you mean by this” were avoided. A total of thirteen individuals were interviewed. An overview of these individuals and their respective roles can be found in appendix 3.

3.

Secondary data

Besides the primary data, in the form of conducted interviews, secondary data was used in the form of previously published documentation such as articles and website/blog posts. Exemplary are found published interviews and online articles that contributed to the literature review and the findings section. Secondary data can be defined as data that has already been collected for some other purpose and can be valuable when reanalyzed (Saunders & Lewis, 2012). Secondary data has the advantage that it is readily available, saving in resources such as time and money. Furthermore, it allows to compare data that you have collected with existing data, offering multiple perspectives (Saunders & Lewis, 2012).

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3.3 Data Analysis

The first step in analyzing the interviews was transcribing the interviews. The interviews were transcribed by using Express Scribe Transcription. The second step involved coding the interviews. Both a deductive as well as an inductive approach was taken in coding the interviews. In deductively coding the interviews, the framework of forms of capital and dichotomy of types of clusters were used, as they have been identified as critical variables to explain the dynamics and processes of clustering in the creative industries (Edmondson & McManus, 2007). The rest of the interviews were coded inductively in order to identify new topics that were established from the raw data (Boyatzis, 1998). The inductive approach allows researchers to extract theoretical observations and contributions to the topic. During and after the coding a coding scheme was set up that was used to categorize the coded transcriptions. This coding scheme can be found in Appendix 4.

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4. Findings

This chapter provides the findings of the conducted empirical research. A clear summary of the collected data will be given, within the framework of the set-up research questions.

4.1 Definition of Creative Clustering

In the literature review of this thesis I already took an in-depth look at the definitions present in current literature. Based on those definitions, I defined creative clustering as:

“the gathering and continuous engagement of like-minded individuals, or groups of individuals, in the creative industries who are interested in similar ideas, goals, or other outcomes. The main attributes are the embeddedness and interconnectedness of those actors operating in these clusters.” (page 7)

The interviewees were asked to give their respective definitions of creative clustering, to see if the individuals practically involved in clustering have a different definition compared to the scholars who have written about the concept.

4.1.1. Ambiguity

Findings show that the term creative clustering was rather ambiguous to the respondents. When contacting the respondents, on quite a few occasions their first reaction was: “what is

clustering?” However, after explaining personally, or sending over a document I created that elaborated the concept, they realized it was something they are familiar with. Two respondents about the concept of clustering and the relevance:

“Although I never put a word to it until now, clustering is something I have seen develop and grow over time since the mid-2000s.” – R8

“Clustering is a new term to me, but it’s something that I’ve always seen growing up and continue to see today.” – R10

Even though the clustering as a definition did not necessarily immediately ring a bell, the respondents were familiar with the concept of creative clustering after brief explanation.

4.1.2 Key Notions

In defining creative clustering, there were a few key findings. First of all, “network” as definition, or essential part of clustering, was mentioned. I interpret this as underlying the

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notions of interconnectedness and embeddedness, as it highlights the dependencies of the actors involved. Two interviewees stated:

“I see clustering as a network in a way.” – R3

“I think, as a concept, whether it is called clustering or I suppose there are different ways to define this. I sometimes probably call it networks.” – R2

Secondly, interviewees put emphasis on the fact that clustering is about collaborating and doing this with people from a wide range of different backgrounds and areas. Joining forces in order to create a better good is a central way attitude in clustering. Two respondents mentioned:

“Clustering touches on two important areas: collaboration and access to capital. Clustering can be either people who work exactly in the same area as you, but … it could also be in terms of having people who work in different disciplines to work together.” – R4

“It’s coalition building. It’s when people find it more useful to join forces with others in order to maintain a creative space, share and strengthen concepts and ideas, test out material etc.” – R10

Multiple respondents pointed out the relevance of diversity in clusters as a way to strengthen clustering. Findings show that diversity allows the individuals involved to open up to new ideas, thoughts and possibilities outside their own individual frameworks of thinking and acting:

“I think diversity is very important. That, when you think about clustering, you do not have solely people fitting in the same category. Diversity can work very empowering.” – R3

“(You) have this kind of crossover, where everyone can meet and that is where I think the most interesting interactions happen.” – R7

“I personally love this challenge of working in the difficult weird space in the middle of a Venn diagram with two clusters. That is where innovation and creativity collide basically. For me that is the most interesting space, where worlds collide. You get energy, friction, tension, heat and light.” – R2

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“I define clustering as [bringing] individuals together that are either similar or have similar values and making it belong to a group. For example, bringing individual slices of a pizza together to make a whole pie.” – R11

“By people clustering, … the result … was greater than the sum of the [individual] parts. There is something to be said that clustering amplifies the totality of the members.” – R6

By being in a group, the individuals are seen to be strengthened. It is the act of them coming together that creates additional value beyond what each individual brings to the table.

4.1.3 Type of People

It would not be possible to grasp the concept of individuals clustering without paying attention to the type of people that cluster, or for which type of people clustering would be interesting. The fact that a lot of people in the creative industries come from economically constrained positions is apparent here. Findings show that creative clustering could potentially be beneficial for a large group.

“I think it is useful for any creative, especially those who may have limited resources. The idea that your resources can be shared within clusters, I think is especially powerful.” – R10

Clustering is not always seen as a forced occurrence. More often than not, it is a natural process that occurs when people in similar situations get in touch with each other.

“You have a dream that you work towards to and you set milestones on the way. Other people can help you with that. Because of that, you do unconsciously act upon that looking for like-minded people to help you out.” – R5

It happens naturally. Depending on how and what stage you are in creating, which is whether you are creating for yourself or to commercialize, clustering will happen by natural effect. – R1

People definitely do need to be willing to work in an environment where being open and sharing with each other is something that happens on a daily basis. Having the right soft qualities in dealing with others can prove to be very useful.

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“Your ability to function as a social animal [in a cluster] and your ability to listen and have those soft qualities of being a team player, empathy, are becoming a lot more important than

ruthlessness.” – R2

However, does this mean clustering really is for anyone? Not according to everyone. It seems easy to emphasize on the positive mindset that it could be for everyone, but as one respondent stated this is not the case. It is important for a cluster to know how everyone is involved precisely.

“Some people just want to do their own thing and that is it. Others really want to socialize. That is important to keep in mind. Maybe your expectations are incorrect.” – R1

There is an amount of effort and work that has to be put in in order to function in a cluster; it does not always come naturally. One respondent pointed out that it involves work on many levels:

“It requires quite a lot of organization, determination and commitment to be in a cluster.” – R4 “For some people, who need more security, definition, I think that could not work so well and they might actually crave much more traditional hierarchical structures of working.” – R2

The facets pointed out above come from individuals who were practically involved in clustering. However, it is valuable to see how the people on the other side – namely the organizing side – of clustering answer the question from their perspective. Individuals who facilitate clustering locally were contacted and asked about their role in accepting people in their clusters. They indicated that very few boundaries are set for individuals to join their respective clusters, possibly to stimulate the diversity they value.

We do always check if people are open to collaborate. If they are willing to crossover with others. That really is the only condition. And if they fit our cluster mentality wise. – R3

It differs a lot what kind of people we get. But the first question we always ask is if they think this area and the surroundings suit them. – R5.

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The role taken by the organizers of clusters differed. Some had no active role in making sure the individuals at a location would engage with each other, whereas others tried to stimulate that as much as possible.

“One of my jobs as a host is to facilitate conversation and get people communicating, and create and foster that environment of collectiveness. We have meetings every Friday with some drinks.” – R2

“Our entire team has a very active role in making connections between members on a daily base. We walk around, stay in touch and monitor what is going on. When people are looking for something, we try to connect them to the ones that might be able to help them out. It takes a lot of time, but we think it is the essence of our breeding place.” – R3

While the respondents seemed alienated from the word clustering, the concept behind it was known to all of them. The findings show that they do use different definitions to what they believe clustering is, potentially meaning there is ambiguity as far as discourse goes. The

findings also show that diversity is seen as a key incentive to make clustering interesting and that the value of being in a group plays a central role in defining (creative) clustering.

4.2 Effects of Creative Clustering

This section will provide an overview of the findings about the effects of creative clustering in a broader sense. Findings about both the positive and negative effects of clustering are covered first. It is important to know that the effects mentioned here are attributed effects of creative clustering, as depicted by the respondents.

4.2.1 Positive Effects

A vast range of positive effects were pointed out by the respondents. They have been categorized in the following different categories:

4.2.1.1 Out-of-the-box Thinking

The importance of stimulating diversity within clusters has been pointed out as a core idea earlier in this chapter, as diversity allows individuals to open up to different ideas. This very much means that out-of-the-box, or creative and unorthodox, thinking is supported.

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“I guess everyone is different, and clustering is good at the moment when you want inspiration, when you want ideas, when you are in the generation phase. If you stay by yourself all the day, you will end up doing the same thing.” – R7

“Crossovers are central [in clustering]. Getting in touch with new subjects, new tools, new people, allowing you to explore outside of your own realm and think outside the box.” – R3 “My answers seem so cliché, but everyone really pushes me to never stop thinking outside the box.” Ta-Ku in (Pearce, 2015).

The support for out-of-the-box thinking happens in various stages of the creative process, through opening up to new people, subjects and tools.

4.2.1.2 Intangible Aspects

Besides the ability to venture into unexplored areas as an individual, other more intangible aspects are being affected as well. First of all, being in a cluster can lead to new means of exposure through the others involved in clusters:

“Having clusters [that you are involved in] is both beneficial to you increasing exposure of your brand, increasing value of your brand or product or in general increasing your ability to do something that you are doing even better.” – R1

“Having a collective increases visibility for the individuals within it and reinforces a message as a group.” - Jacqueline Schneider in (Calvano, 2015).

Secondly, findings show that confidence is something that can be highly affected by being involved in creative clustering. This happens through feedback or having access to multiple opinions about what people think in other ways.

“Clustering can be an incredible way to gain support, confidence, and ability in your ideas. You are able to hone your own self confidence and beliefs the more you expose yourself to those in other people, as you come to realize who you agree and disagree with.” – R9

Thirdly, support from peers and other like-minded people is an assuring feeling that will empower individuals to fully go for what they believe in:

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“The strong points for clusters are that socially, culturally, and economically, people are capable of creating deep connections with others that are like minded. There’s a great level of support that can develop, and the loss of isolation can be greatly motivational.” – R8

These attributed intangible effects mostly seem to relate to motivational factors that can work as a driving factor for individuals to strive for the best.

4.2.1.3 You Can Achieve More Together

Collaboration was identified as playing a central role in clustering earlier in this chapter, and the other factors mentioned as positive effects all relate to, or become apparent through, this. This connects with the notion that there is power in numbers and one can achieve more with others than on their own. One respondent mentioned:

“I think it is improving on something that you may have not anticipated on before. Something that maybe would be unattainable with just you being one.” – R2

This means being involved in a cluster might mean your approach will be different, but it will ideally lead to a better final product, as illustrated:

“We come together. It has been an experience of sharing ideas, of compromise, and the final product is, we are about a week away now, but I know that for a fact it is entirely different from what it would have been had I done it by myself. It is a much better product because of that.” – R6

“It is a firm belief that it takes a team to make things work, and, by pooling/clustering the skills and assets we all have, artists can more easily have bridges built to where they need to be, both financially and artistically speaking.” – R12

But, really it should be about the quality of the product you are seeking to create. And I think it is pretty evident that we see clustering generally results in a better product than going at it alone. – R6

Individuals should not be scared of drifting away from their original path. If creating the best product possible is the end goal, interaction with others might make one realize it takes a different route than expected. This is not something to necessarily shy away from.

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4.2.1.4 Resources and Capital

Finally, being in clusters affects the available resources and capital of the individuals involved. And while this coincides with the forms of capital and how they are being affected specifically, which will be discussed later on, general positive effects are worth mentioning. An emphasis was being put on sharing resources:

“Sharing resources is important. Now [by being in a cluster] you have access to everyone in your cluster to help push your own creative endeavor even more.” - R11

“Because spaces and resources can be tight, we’ve learned that community, collaboration and the creative repurposing of [resources] is invaluable … The idea that your resources can be shared within clusters, I think is especially powerful.” – R10

“And the amount of capital that each one of us involved had to spent was far less than what we would have had to put in if we did it individual. And consequentially, we are all benefitting in that, whether it is economic, social, symbolic. All forms of capital we are being enriched that way in a greater effect than we would have had we embarked this individually.” – R6

Overall the positive effects become apparent in many different shapes and forms, whether or not it is in more tangible or intangible ways. The general idea seems to be that you can do more together than on your own, as a result of aspects such as increased exposure, confidence, support and other effects on available resources and capital.

4.2.2 Negative Effects

The findings show a broad range of positive effects of creative clustering. It is important however to also shed light on possible downsides or negative effects of creative clustering. First of all, there is a risk of group thinking as a cluster, where possibilities and opportunities are not acted upon because the people involved were all thinking in a similar way. The question then is at what point does inclusiveness become exclusiveness and to what extent do people end up in their own bubble.

“It can become quite tribal in a sense. People stay in their own bubble. It is something to be aware of, that you become too insular in your thinking.” – R4

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“Occasionally clustering can be a case of ‘preaching to the converted’ - if you’re constantly in the same cluster, you’re not expanding your social networks, horizons, believes, knowledge in the correct way.” – R9

Findings also show that the composition of a group is very important, especially when you have a binding factor more than just location.

“As with any group, the work load is not going to be evenly dispersed. You are only going to work at the speed of the hive. Which more often than not is the speed of whoever the slowest team member is.” – R6

Besides negative effects that could occur as a cluster, on an individual level there also are negative effects to take into account. Being affected too much on an artistic or personal level was a concern pointed out by various respondents.

“There's a point where people have too much external influence, or too many influences from too many people. So, they become radar-less or lose their point of reference and that is for me the most important thing to whatever it is that you are creating.” – R1

It can be argued however if this really is a negative effect of clusters in general, or whether or not that differs per, and therefore relates more to, each individual. In that sense integrity and staying true to yourself play a role as part of human’s characteristics. As one interviewee stated:

“Yes [that could happen], but that is not a problem of the clustering, it is a problem of the individual.” – R7

Through observation, I noticed that the respondents needed more time to come up with possible negative effects than positive effects. Overall, the it can be argued that the positive effects outweigh the negative effects.

4.3 Form of Capital

The main question focuses on the effects on the resources and types of capital of individuals, based on Bourdieu’s Forms of Capital framework. This section will show the findings

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4.3.1 Social Capital

Social capital includes an actor’s network and social contacts. In an obvious way, joining a cluster allows individuals to include the other people from that cluster to their personal network. One respondent illustrated:

“Clusters foster social interaction, the exchange of ideas, and, ultimately/hopefully, growth.” – R12

Findings show that individuals connect on multiple levels, both professionally as personally and interdisciplinary. Depending on the cluster, however, one is not always expected to fully engage with everyone, as illustrated by this interviewee:

“It is a fantastic network, with networking opportunities, but it is kind of up to you to engage with that how much you like to do.” – R4

This can be interpreted in a way that individuals in clusters have different types of ties (strong/weak) with each respective member in these clusters.

On the effects of growing your social capital, thus network and social contacts, the findings show that aspects such as confidence and innovative ways of thinking are stimulated. Another

important aspect was getting access to more knowledge, which brings us to human capital.

“You gain more knowledge by growing your social network.” – R9

4.3.2 Human Capital

Human capital is defined as the knowledge and skill sets of people. Like social capital, human capital effects were mentioned as the most eminent ones. Knowledge is something that is being transferred by daily conversation, feedback, events or other means of knowledge sharing in clustering. With this added knowledge and skills, members of clusters are able to achieve more than they would individually.

“Joining clusters more than anything gives you access to talented and skilled people. It provides opportunities to learn new things.” – R10

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“Humans are always growing/learning/evolving, and, by coming into contact with

resources/stimuli of any kind, a human’s particular capital is set to expand in these kind(s) of ways.” – R12

Knowledge sharing and helping each other out was something that happened on a daily basis, and very well connects to the notion of like-minded people working towards similar goals and the idea that there is power in numbers. One respondent explained it happens in even the smallest ways:

“Yes, [it happens] all the time. Even if it's just saying you like something you already provide knowledge.” – R1

This like-mindedness reduces the barrier to ask for the help of others and to connect with them.

“You put all these creative people in the same place, and people share ideas, they tell you what they are looking for. It is easy to connect people together as well.” – R7

Overall, human and social capital as forms are highly connected and related. Increasing one’s social capital logically leads to an increase of useful knowledge and skills of others when you are dealing with like-minded individuals within a certain industry.

4.3.3 Cultural Capital

Cultural capital is one of the forms of capital that is a bit more intangible. It entails the norms and values that people involved with each other share and the behaviors that follow in groups because of that. Findings show that, even though it is harder to grasp, this aspect was deemed important for the individuals operating in creative clusters.

Getting consensus in ways of thinking and behaving is a challenge when you are dealing with individuals. This seems especially apparent when diversity is a key aspect that is valued, meaning people from different background with possibly different values will operate as a cluster. While a shared vision, or something else that holds a group apart, is essential, valuing the individuals as they are is key.

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“I think everyone should be able to bring their own unique vision and talents and perspectives, and I do not want people to change themselves in order to be part of a cluster. It's hard to build consensus, vision and leadership, but embracing and harvesting people's uniqueness and diversity is a big challenge.” – R2

“I think there is a common respect for people’s skills and from that respect also comes the place that you understand your role even more in the wider scheme of things.” – R1

Because of the importance of context for each cluster, as they operate in their own respective surroundings with their own individuals, it is difficult to determine one thing that holds groups together. This also means no one cluster is exactly the same as others.

“Yes, [clusters create their own culture]. Depending on the cluster, because everyone arrives with his own identity and the collective gets this overall identity and new culture because of the mix [of individuals]. Sometimes you cannot put it in the direction you want. I wish we could, but the culture and the energy that is created is kind of, we try to steer it in a way, but it really is its own creature. The culture is made of who they are, where they are coming from, what they do, what they practice and preach.” – R7

“There could be a gravitational center but you have no actual center right, so you could have a cluster of things, but if you were to draw a line between all of those things, what is the notional conceptual center. What is holding, what set of things and energies is holding the gravitational center together?” – R2

Going in deeper on what groups holds together, findings show that being invested in some sort of way is a good incentive to stay true to a cluster and work towards the best results as a cluster. Having this investment means the return for individuals then depends on the success of the whole.

“By working on a kind of ownership basis, you end up with a better product, because now people have invested interest in the success of that product. The success, or the ability of that product to succeed, grew by a number that you cannot necessarily quantify. And that would not have been there if the others were not invested in the way they were.” – R6

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