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Dahu, a small township in northern Taiwan, is famous for its produce of strawberries. Near Dahu, there are some attractions, such as hot springs, native Taiwanese tribes and a national park named Shei-pa. In order to better support more small businesses in this area, the local government is eager to promote an industrial cluster of agriculture and tourism based on the well-developed strawberry farms. In this research, the authors investigated 200 strawberry farmers to examine forming factors of the cluster, and effects of cluster on organizational performance. The findings are firstly, capital resource is regarded as the most effective forming factor of the cluster. Secondly, institutionalization, interaction mechanism and knowledge flow positively intermediate the clustering effects on organizational performance. These findings have important implications for the local government and the businesses as well.

Developing an effective industrial cluster from strawberry farms: A case of Dahu Township in Taiwan