Is cluster theory in need of renewal? – Porter’s Diamond revised

Abstract: In the globalized world of today, ironically, companies find competitive advantages in locating in proximity of each other. These highly present industrial groupings are called clusters. A popular model to describe the benefits of a cluster environment is the Porter’s Diamond, also called the Diamond Model. Since the Diamond Model was published in 1990, there is a need of complements, in order for it to fit the dynamic business world of today. Hence, the purpose of this thesis is to examine the benefits of a cluster environment with theories from four different designated perspectives other than Porter’s Diamond. This, to see if these theories can complement the Diamond Model to show a more contemporary, and comprehensive picture of the benefits in a cluster environment. The research is intended to examine if the theoretically stated benefits can be recognized by the companies situated in a cluster environment. A compilation is created by the theoretical framework and tested with the Diamond Model to see if it presents a better picture of cluster benefits. The thesis conclusions fortified the saying “age before beauty”, at least if age is complemented with a social attitude.