Network structure and knowledge transfer in cluster evolution : The transformation of the Napa Valley wine region

Purpose – The purpose of this paper is to investigate the nature of interactions amongst specialists in an embryonic and emerging network. Design/methodology/approach – The approach taken was qualitative research utilising ethnographic methods of interview of key actors. Findings – Cooperative activities in the early phase of market growth facilitated information pooling crucial to the sector's growth; following industry legitimacy, there is less incentive or need for such pooling as information becomes codified. Governance structure change as a consequence of such an evolution in organizational form. Originality/value – The paper examines how tacit knowledge sharing is crucial to industry growth through informal networks, then how such knowledge is less valuable once industry legitimacy has been established. Cooperation thus becomes increasingly replaced by competition between organization and the key actors therein.