Indian Journal of Industrial Relations

1. Baldev Singh Shergill – Assistant Professor at the Guru Kashi Department of Social Sciences, Punjabi University Guru Kashi Campus, Talwandi Sabo, Punjab.

2. Kamaldeep Kaur – Researcher at the Department of Economics, Punjabi University, Patiala

Received
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Accepted
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Published
28-Jul-2026
Abstract
This paper examines the dynamics of competition, cooperation, and absorptive capacity within three major industrial clusters in Punjab. Based on primary survey data from 150 firms, the study explores how informal networks, trader relations, and inter-firm cooperation shape knowledge diffusion, innovation, and competitiveness. Findings reveal that while firms in all clusters actively cooperate in marketing, input purchase, and information exchange, the extent of absorptive capacity varies significantly. The Hi-tech Metal Cluster demonstrates advanced absorptive capacity with strong knowledge assimilation and transformation, while the Textile Cluster lags behind. Informal ties, especially friendships and collegial relationships, play a critical role in fostering trust and collective efficiency. However, limited staff training and low patent activity highlight the dependence on subcontracting and external innovation.
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