Market imperative and cluster evolution in China: evidence from Shunde

Drawing upon the notion of lock-in in evolutionary economic geography perspective and concept of market imperative in global production network 2.0 theory, this study explores the role of market imperatives of local suppliers in the evolution of local industrial clusters in China. Through a case study of the furniture cluster in Shunde, this paper argues that market imperatives of furniture firms have changed dramatically, urging furniture firms to de-lock from previous low-end domestic markets in China and expand to different market segments in China as well as in other emerging economies. The changing market imperatives led to the breaking-out of lock-ins and the transformation of local clusters in the changing institutional context.