Since the reform and opening, the traditional labor-intensive industries driven by Foreign Direct Investment (FDI) have been developed rapidly in the Pearl River Delta Region. The process of internationalization has been accelerated. After the twenty-first century, globalization has become an irreversible trend of world economic development. In recent years, the export-oriented economy which solely relying on Original Equipment Manufacturer processing and the export of low value-added products has suffered the issues of rising raw material costs, labor shortage and international trade barriers. The sustainable development of cluster has been restricted seriously. In a new round of opportunities and competition pattern, how the traditional industry cluster in the Pearl River Delta Region to maintain the existing advantages and to further improve the international competitiveness has become the focus of many economists and government.Based on previous researches of the internationalization stage theories, process model theories, motivation theories and some empirical research at home and aboard in this paper, and take the denim industrial cluster in Xintang, Guangzhou, as an example to analyze the current status of international development. Using enterprise questionnaire, depth interviews and investigation methods for obtaining first-hand data, from the perspective of internationalization theory to tease the development process and characteristics and analyze the internationalization driving factors and mechanisms of Xintang denim industrial cluster in different phases. At the same time, quantitative measurement is given to describe the contact intensity and density within the main actors in the industrial cluster. All that can provide some theoretical basis and case reference for the optimizing the internal network structure of Xintang denim industrial cluster, promoting the upgrading and restructuring of traditional industries under the financial crisis, and improving the international competitiveness of cluster.Firstly, based on analyzing the development status and the future position of research region, questionnaire survey and in-depth interviews are given to the finished vendors, raw material suppliers and manufacturing enterprises. The international characteristics of the main actors within the cluster and the issues are analyzed in depth from each link of the industrial chain.Secondly, the diagnosis about the international characteristic of Xintang denim industrial cluster is given. The links which production, distribution and brand construction in the industrial chain are involved internationalization. The combination of “bringing in” and “going out” is the main internationalization development mode. The disorder internationalization mode of advancing gradually is driven by orders. Nowadays, Xintang denim industrial cluster is in the internationalization phases of indirect exports, small-scale test marketing. In the process of internationalization, Xintang denim industrial cluster is faced with low added value, excess capacity, few internal contact, lack of well-known international brands and the inability to overcome the barriers to international trade.Thirdly, through systematic analysis of general influential factors and changes of influential factors at different stages of internationalization, reveal the mechanism of internationalization of Xintang denim industrial cluster. The internationalization of Xintang denim industrial cluster mainly affected by policy factors, location and resource factors, economic and industrial factors and cluster organizational structure factors. In the Household Workshop Initial Stage, the policy of reform and opening up, Foreign Direct Investment (FDI) and regional resources are the important force to promote Xintang denim industrial cluster to the world. Complete industrial chain matching, the rapid development of private enterprises and intermediate agencies are the main motivation to further enhance the internationalization degree of cluster. Under the interaction of policy factors, location and resource factors, economic and industrial factors and cluster organizational structure factors, five kinds of dynamic are generated. They are suction of good regional resource conditions, inertia force of social network, joint force of the industrial economy, driving force of government decision support and resistance of the financial crisis and trade barrier. The development of Xintang denim industrial cluster is the interactive results of five kinds of dynamic.Fourth, through to the leading enterprise in-depth interviews and case analysis, summarized Xintang denim industrial cluster enterprise internationalization development in three modes:the introduction of technical equipment and personnel to build domestic own-brand mode; Original Equipment Manufacturer (OEM) for foreign brands drive endogenous brand mode; purchase the foreign brand and share sales channel network mode. Social network analysis method is used to measure the contact intensity and density within the main actors in the industrial cluster, points out the problems that existing in the network structure of industrial cluster. Finally, pose the future network structure and the internationalization development mode of the cluster. This network structure is “dual-core” mode. Xintang Chamber of Commerce (or industry associations) and leading enterprises should be taken as core network; the raw material suppliers and small and medium-sized enterprises, government, and research institutions should be taken as perimeter network; the financial institutions and intermediaries to form the edge of the network. The pattern of network radiation embedded in chain can be used in Xintang denim industrial cluster in the future. In this pattern, we should take the leading enterprises as the cores, to focus on R&D design, denim fabric production and washing, bleaching, dyeing, which are the key processes of cluster, and integrate the cluster advantages. At the same time, washing, bleaching and dyeing which is the core advantage of Xintang denim industrial cluster should be taken as the couple point to embed in global value chain. With the association of the industrial network of the public technology platform, product design information platform and electronic commerce platform, the small and medium-sized enterprises indirectly integrate into the global production network, to achieve the goal of cluster internationalization.
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