The Clustering of Organizational Innovation: Developing Governance Models for Vertical Integration

Abstract

This case explores a cluster of firms that emerged sharing a particular ownership structure. Typically, clusters are thought of as interrelated firms that produce similar products and services. However, we document the emergence and evolution of a cluster of entrepreneurial ventures that developed using a unique governance structure. We explore the deviant case of Renville, MN because of its notable success in developing a series of entrepreneurial ventures that provided producers with the opportunity to vertically integrate.