Innovation, competitiveness and sustainability: evidence from agro-industrial Spanish clusters

Purpose This study aims to verify whether the participation of agricultural companies in associative agro-industrial clusters increases and improves their competitiveness, productive effectiveness and financial performance and their progress towards more sustainable practices. Design/methodology/approach This study uses multiple case studies with data from two agro-industrial clusters in Spain. Qualitative data is from interviews and testimonials using 41 companies, and quantitative data were analysed using simple regression models with time as a regressor, using 212 companies. Findings Financial indicators from companies participating in a cluster are compared with those of companies that are not, both in their region and in the organisation for economic co-operation and development (OECD).The data showed that companies associated with clusters have better economic results than others in the same region and in the OECD. It is also verified that companies linked to the cluster are much more efficient. Furthermore, the small and medium-sized enterprises (SMEs) stand out the most capitalised in the cluster. In addition, evidence from ongoing R&D, innovation and circular-economy initiatives demonstrates that cluster membership facilitates the adoption of sustainability-oriented practices, aligned with SDGs 2, 9, 12 and 13. Research limitations/implications As with any empirical analysis of dynamic organisational settings, this study faces certain limitations. Agro-industrial clusters are evolving rapidly, making it challenging to fully capture the ongoing transformation of their activities and impacts at a specific point in time. In addition, while cluster organisations play a central enabling role, the success of the initiatives described ultimately depends on the degree of engagement and implementation by participating firms, which naturally introduces heterogeneity in observed outcomes. Finally, financial performance indicators are drawn from secondary databases that incorporate information with a time lag, meaning that some effects of cluster participation may materialise gradually and become observable only over time. Practical implications The findings of this study offer practical guidance for cluster managers, policymakers and firm owners. They underline the importance of well-structured cluster organisations that actively facilitate collaboration, innovation, sustainability-related projects and knowledge transfer, particularly for SMEs. For policymakers, the results support the design and continuation of agglomeration and cluster-support policies as tools for strengthening regional agri-food systems and accelerate the transition towards sustainable production. For firms, this study highlights the value of proactive engagement in cluster activities to fully leverage collective resources, improve competitiveness and performance, while also enhancing environmental outcomes. Social implications This study highlights the social relevance of agro-industrial associative clusters as drivers of inclusive and sustainable local development. By fostering collaboration, innovation and knowledge sharing, clusters contribute to strengthening SMEs, supporting employment creation and enhancing skills development in rural and agri-food territories. Originality/value This study contributes to the literature on agro-industrial clusters by providing empirical evidence on the role of associative cluster organisations in enhancing firm performance, innovation, sustainability-related capabilities and local development.