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Competitive or cooperative relationships in clusters: A comparative study of two internationalising agro-processing clusters in Ghana

Anthony Ayakwah (Department of Liberal Studies, Koforidua Technical University, Koforidua, Ghana)
Leandro Sepulveda (Centre for Enterprise and Economic Development Research, Middlesex University, London, UK)
Fergus Lyon (Centre for Enterprise and Economic Development Research, Middlesex University, London, UK)

Critical Perspectives on International Business

ISSN: 1742-2043

Article publication date: 7 February 2018

Issue publication date: 30 May 2018

627

Abstract

Purpose

An efficient policy supporting clustered business operations necessitates an appreciation of the dynamics of rivalry and collaborations among businesses. This paper postulates that variation in competition and cooperation can significantly influence the nature of business relationships among clustered businesses, which is essential for cluster policy particularly (Newlands, 2003) as most research on rivalry and cooperation in clusters have been in developed economies. The purpose of this paper is to seek to fill the gap in the literature in African clusters based on original empirical research.

Design/methodology/approach

The study adopts a mixed-method research design allowing for data triangulation to study two food processing clusters. The approach comprises a survey and in-depth interview with key actors along the supply chain.

Findings

The findings show that business clusters with more formal business structures tend to have minimal horizontal competition but higher vertical cooperation. Comparatively, clusters with more socially embedded milieu tend to have higher levels of cooperation and minimal competition in both vertical and horizontal relationships. The research also shows that such variations in inter-business relationships have an effect on cluster operations in terms of business access to finance, formal contract, sharing of innovation and the way they relate to different stakeholders in their supply chain.

Originality/value

This paper advances a critical case for international business theory on clusters in Africa to incorporate the distinctive business relationships in small and medium enterprises (SME) clusters. It also demonstrates how unique location-specific attributes of developing economies hold the key to sustaining the operations of SME-based clusters.

Keywords

Citation

Ayakwah, A., Sepulveda, L. and Lyon, F. (2018), "Competitive or cooperative relationships in clusters: A comparative study of two internationalising agro-processing clusters in Ghana", Critical Perspectives on International Business, Vol. 14 No. 2/3, pp. 230-251. https://doi.org/10.1108/cpoib-12-2016-0063

Publisher

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Emerald Publishing Limited

Copyright © 2018, Emerald Publishing Limited

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