Understanding pioneering orientation in tourism clusters: Market dynamism and social capital

Abstract The aim of this paper is to study whether and how closed ties and diverse ties moderate the relationship between firms' market dynamism and pioneering orientation in a tourism cluster. We use original data on a sample of 215 firms belonging to the World Heritage Cities of Spain. The results show a curvilinear U-shaped relationship between market dynamism and pioneering orientation. This relationship is accentuated by higher closed ties, and is attenuated by higher diverse ties. Managers are advised to pay attention to changes in consumers’ needs so as to identify first-mover opportunities. Furthermore, firms located within tourism clusters might benefit from developing social capital. Specifically, managers should strengthen their closed ties when market dynamism is high and their diverse ties when the first changes in the market emerge.