What do firms need to broker knowledge in clusters? absorptive capacity and institutional connectedness. A case study of the Valencian toy Valley

This study adds to the ongoing discussion regarding the brokerage activities of firms within a cluster. Considering the cluster as a network metaphor derived from the relationships established among actors within it, the existing literature confirms that a firm's location in the network is a strategic factor. However, the literature also argues that overly central positions can have negative or locking effects, so firms must expand their relational horizons outside the cluster to explore new knowledge. This activity, which may seem to reduce the firm's connection to its local network, may increase its value as a knowledge broker. In turn, this brokerage capacity is enhanced by other factors, such as absorptive capacity and links to local supporting institutions. To explore these research questions, an empirical investigation was conducted within the Valencian cluster of the Toy Valley. The results reveal that extra-cluster links benefit the firm's brokerage activity. They also show that meeting certain levels of absorptive capacity and local supporting institution connectivity is necessary for this dynamic to occur. Finally, we consider that this paper makes interesting contributions to the open debate in the literature on the value of knowledge brokers in networks or clusters. • Brokerage in clusters is a conditional and non-linear dynamic capability. • R&D at 5.9 % marks the fixed cost of routines to decode external knowledge. • Firms need three institutional links to gain legitimacy as valid brokers. • Qualitative data confirms a non-linear shift to structural brokerage. • Extra-cluster ties boost brokerage only after reaching specific thresholds.