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Literature studiesindicate that information technology (IT) clusters encourage innovation andincrease firm-level productivity by providing external economies and facilitatingjoint action for its members. The purpose of this study is to identify theexternal economy and joint action factors that affect firm innovation andproductivity in the IT cluster. A research model was developed based on earliermodels of joint action and external economies. The model consists of three externaleconomy related factors, i.e., access to skills, finance, and infrastructure, aswell as three joint action related factors, i.e., vertical, horizontal, andresearch and development (R&D) cooperation as the independent variables,firm innovation as the intervening variable, the firm?s absorptive capacity asthe moderating variable, and firm productivity as the dependent variable. Datacollection was conducted through a survey with respondents from 32 IT firmslocated in three clusters in Bandung and one cluster in Cimahi (West Java ?Indonesia). The partial least square (PLS) approach was used for hypothesestesting. The results indicate that horizontal cooperation, access toinfrastructure, and access to skill have a positive impact on productivity,while horizontal cooperation and R&D cooperation have a positive impact oninnovation. Finally, firm innovation is proven to positively influence firmproductivity. |
