A heterogeneous information network (HIN) is one whose objects are of different types and links between objects could model different object relations. We study how spectral clustering can be effectively applied to HINs. In particular, we focus on how meta-path relations are used to construct an effective similarity matrix based on which spectral clustering is done. We formulate the similarity matrix construction as an optimization problem and propose the SClump algorithm for solving the problem. We conduct extensive experiments comparing SClump with other state-of-the-art clustering algorithms on HINs. Our results show that SClump outperforms the competitors over a range of datasets w.r.t. different clustering quality measures.