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Article
Publication date: 8 June 2012

Christian Felzensztein, Eli Gimmon and Claudio Aqueveque

This paper aims to focus on the perceived role of clusters in inter‐firm cooperation and social networks.

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2020

Abstract

Purpose

This paper aims to focus on the perceived role of clusters in inter‐firm cooperation and social networks.

Design/methodology/approach

The study was carried out in a region of Latin America where limited research has been conducted in terms of inter‐firm relationships. Managers from three key natural resources‐based industries in Chile participated in the survey; one of these industries constituted a well‐defined cluster whereas the other two did not. The survey assessed managers' perceptions of the benefits and opportunities of inter‐firm cooperation in strategic marketing activities.

Findings

Results support the advantages of clusters. Managers of firms which are part of clustered industries tend to perceive more benefits and opportunities for inter‐firm co‐operation in marketing activities. Additionally, significant differences between clustered and non‐clustered industries in terms of their co‐operation behavior and objectives were found.

Research limitations/implications

The findings shed light on strategies for the enhancement of inter‐firm cooperation in marketing, of particular value for marketers in small‐and‐medium sized enterprises. The paper suggests establishing new clusters and promoting more regional clusters policies since clustering seems to provide better and positive inter‐firm interaction leading to cooperation.

Practical implications

There are lessons to be learned at national and regional levels for Latin American and emerging economies fostering new industry cluster policies.

Originality/value

Clustered firms and industries may result in more innovative marketing strategies at both local and international levels than non‐clustered firms. The authors encourage regional development bodies to foster more cooperation among firms and trade associations.

Details

Journal of Business & Industrial Marketing, vol. 27 no. 5
Type: Research Article
ISSN: 0885-8624

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Article
Publication date: 7 November 2016

Xiujie Wang, Jian Liu and Can Ma

The purpose of this study is that on the basis of the competitive edge theory, source mechanism and evaluation approaches of industrial cluster competitiveness, combined…

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1277

Abstract

Purpose

The purpose of this study is that on the basis of the competitive edge theory, source mechanism and evaluation approaches of industrial cluster competitiveness, combined with international trends in the automobile industry and the features of Chinese automobile industrial cluster development, an evaluation index system about cluster competitiveness of auto industry is built with comprehensive consideration of factors such as cluster development environment, external scale effect and internal competitiveness from the perspective of value chain of automobile industry.

Design/methodology/approach

An evaluation index system for automobile industrial cluster competitiveness was realized by integrating current strengths and future growth capacities with multidimensional, dynamic and comprehensive characteristics, which included 3 second-level, 10 third-level and 16 fourth-level indices. In the light of evaluation methods, a group intelligence optimization algorithm – (cuckoo search) – and traditional methods of complex decision-making system – analytic hierarchy process (AHP) – were combined to propose the cuckoo-AHP evaluation method. It was applied for the calculation and optimization of weight values in an automobile industrial cluster competitiveness evaluation index for the purpose of obtaining better scientific and more reliable results.

Findings

The research might further enrich the evaluation theory of automobile industrial cluster competitiveness and also can be useful for showing how traditional evaluation methods can be combined with intelligent algorithms to carry out better automobile industrial cluster competitiveness evaluations. In addition, studies of channels for kick-starting Chinese auto industrial cluster competitiveness are expected to provide references for how to enhance the cluster competitiveness of the Chinese automobile industry.

Practical implications

Changsha and Liuzhou, the Guangxi automobile industrial clusters as the two empirical analysis objects selected for this paper, are geographically adjacent to each other. The automobile industries of the two cities are local pillar industries with the strong support of the local government. Both clusters have their own advantages and weak points with different characteristics of cluster development, and they enjoy a representative significance amongst China’s numerous auto industrial clusters that are taking shape. Comparative analysis of both clusters serves as a good reference for the objective evaluation of the competitiveness of Chinese automobile clusters in terms of their real and practical developments and in respect of the success of reasonable scientific and industrial cluster policies.

Originality/value

Multidimensional, dynamic, integrated evaluation index systems are constructed around automobile industrial cluster competitiveness, which has taken into account developments in current strengths and future growth capacity. The cuckoo-AHP evaluation method has been formed by combining the traditional decision-making method known as AHP with a new meta-heuristic optimization algorithm called “cuckoo search”. Both have been used in evaluations of automobile industrial cluster competitiveness in Liuzhou and Changsha, which will be beneficial for enriching automobile industrial cluster competitiveness evaluation theory and new evaluation methods that will enable better evaluations of automobile industrial cluster competitiveness.

Details

Chinese Management Studies, vol. 10 no. 4
Type: Research Article
ISSN: 1750-614X

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Article
Publication date: 17 July 2017

Alfonso Mendoza-Velazquez

This study investigates the existence of Marshall, Jacob and Porter’s type of externalities in Mexico. We measure the impact of industrial specialization, competition and…

Abstract

Purpose

This study investigates the existence of Marshall, Jacob and Porter’s type of externalities in Mexico. We measure the impact of industrial specialization, competition and diversity on employment growth for the period 2004 to 2008.

Design/methodology/approach

The analysis is based on data from 41 highly dynamic industrial clusters originally obtained by applying Porter’s (1998) methodology. We use a cross-section specification estimated via instrumental variables and two-stage least square estimation (2SLS) to control for endogeneity.

Findings

On average, we find that industrial specialization exerts a negative impact on employment growth within states and within clusters, indicating that traded industries in Mexico carry very little innovation, operate in early stages of the life cycle, face high costs of employment reassignation or exhibit low adaptability. A negative impact of specialization on employment conforms with Jacobs (1969) type of externalities and confirms what other studies have found in France (Combes, 2000), Korea (Lee et al., 2005) and the USA (Delgado et al., 2014). The authors also find that competition generates more employment.

Research limitations/implications

Industrial data at the sub-branch level were obtained from the Economic Census (EC) of the National Institute of Geography and Statistics (INEGI). The EC information for 2004 was still not fully compatible with the North America Industry Classification System (NAICS), with 262 of the 309 data at the fourth-digit level aligned to the USA. In addition, industrial information from the EC is recorded every four years, which prevents this study to use panel data techniques and it makes it impossible to use time series methods.

Practical implications

Policymakers can clearly identify competition forces having a significant impact on employment growth. This can orient policymakers to implement measures to encourage the development of some of these clusters, as well as to identify some of the sources that drive specialization, competition and diversity.

Originality/value

This paper contributes to the debate on the existence of Marshallian (MAR), Jacobian and Porter externalities. This is the first study using the definition of traded clusters in Mexico, which allows the authors to identify how specialization, competition and diversity forces drive the dynamics of regional employment growth.

Details

Competitiveness Review: An International Business Journal, vol. 27 no. 4
Type: Research Article
ISSN: 1059-5422

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Article
Publication date: 1 October 2018

Pragya Bhawsar and Utpal Chattopadhyay

The purpose of this paper is to provide a quantitative approach to measure industry clusters competitiveness.

Abstract

Purpose

The purpose of this paper is to provide a quantitative approach to measure industry clusters competitiveness.

Design/methodology/approach

An attempt has been made to construct a composite indicator backed up by a conceptually grounded framework, by means of Analytical Hierarchical Process technique. Four industry clusters from auto sector in India are chosen for manifestation of the methodology.

Findings

The proposed methodology sufficiently emphasises on the order of significance of the factors/indicators that make a cluster competitive. The study demonstrates the comparative competitiveness performance of four select industry clusters from India.

Research limitations/implications

The methodology only focusses on auto clusters from India, application of the model/methodology needs to be extended to other set of industries that follows tier structure, or belong to other developing nations to corroborate the findings.

Practical implications

The proposed approach is a useful tool to provide guidance to policy-makers and in monitoring industry clusters progress.

Originality/value

The paper offers an empirical approach for measuring competitiveness of industry clusters. So far there has been only a minuscule research on cluster competitiveness using empirical methods specifically in case of developing countries like India. Because of the heterogeneity of actors in industry clusters and absence of cluster relevant databases, its performance has been mostly captured via means of case studies. This study is one of its kind that renders comparison of competitiveness across industry clusters by combining secondary data with the perception of cluster actors.

Details

Benchmarking: An International Journal, vol. 25 no. 7
Type: Research Article
ISSN: 1463-5771

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Article
Publication date: 18 January 2016

Lee W. Munnich and Michael Iacono

This study aims to advance the state of knowledge of the relationship between transportation and economic development by investigating how firms in competitive industry

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3269

Abstract

Purpose

This study aims to advance the state of knowledge of the relationship between transportation and economic development by investigating how firms in competitive industry clusters use transportation networks and what role those networks play in the competitiveness of these clusters.

Design/methodology/approach

The approach combines quantitative and qualitative techniques to geographically identify competitive industry clusters and to investigate the role of transportation. The US Cluster Mapping tool is used to identify competitive clusters by employment location quotients in 25 Minnesota metropolitan and micropolitan regions. A total of 12 competitive clusters were selected for further study, and in-depth interviews and site visits were conducted with businesses in each cluster to explore the competitive importance of different modes of transportation.

Findings

Minnesota’s economic competitiveness is dependent on a well-functioning transportation system in all modes – truck, air, rail, and water. Access to global markets requires rail and truck to reach coastal ports. Air transportation is critical for high-value, low-weight, time-sensitive products such as medical devices or Mayo lab testing samples. Air service is important for customers at Minneapolis – St. Paul, St. Cloud, and Rochester, Duluth, as well as other Minnesota cities. Highway access and reliability is critical for key statewide clusters such as processed food and heavy machinery.

Research limitations/implications

Study limitations include the representativeness of company interviews in generalizing for a cluster and industry employment as a measure of competitiveness.

Practical implications

These methods can yield valuable insights into how transportation functions as an input within competitive industry clusters and how it can inform economic development strategies tailored to certain locations and industries.

Originality/value

This is a first-of-its kind study using industry clusters as a framework for examining the role that transportation plays in economic competitiveness.

Details

Competitiveness Review, vol. 26 no. 1
Type: Research Article
ISSN: 1059-5422

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Case study
Publication date: 31 August 2021

Pragya Bhawsar

The learning outcomes of this paper will help students in understanding the dynamics of the formation of industry clusters and the benefits associated with industry

Abstract

Learning outcomes

The learning outcomes of this paper will help students in understanding the dynamics of the formation of industry clusters and the benefits associated with industry clusters. The case will give stimulus towards the cluster competition.

Case overview/synopsis

The case describes the dilemma of a potential investor of a tyre company that wants to diversify its product line and is searching for a new strategic location. The investor is thoughtful about the Pithampur auto industry cluster for its upcoming investment. The case demonstrates how Pithampur has transformed into an “industry cluster” and the benefits it provides to firms in it. However, Pithampur is not the only auto industry cluster in India, clusters like Chakan-Pune is in competition with Pithampur for attracting investments. This is a cause of worry for the cluster’s stakeholders. The case projects amalgamation of concerns of the stakeholders of the clusters and those of potential investors in evaluating and benchmarking it with other clusters for a competitive future.

Complexity academic level

Suitable for both undergraduate and post-graduate students (MBA students).

Supplementary materials

Teaching notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.

Subject code

CSS: 11: Strategy.

Details

Emerald Emerging Markets Case Studies, vol. 11 no. 2
Type: Case Study
ISSN: 2045-0621

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Book part
Publication date: 13 December 2011

Timothy L. Pett and James Wolff

Purpose – The purpose of the chapter is to sketch the historical and evolutionary development of the Wichita Aircraft Manufacturing Cluster from inception to present and…

Abstract

Purpose – The purpose of the chapter is to sketch the historical and evolutionary development of the Wichita Aircraft Manufacturing Cluster from inception to present and provide a descriptive narrative of aircraft industry knowledge spillovers currently driving effort to establish a Medical Device Manufacturing Cluster. The chapter illustrates how carbon-fiber composite materials knowledge and technology developed for use in the aviation industry is facilitating the creation and growth of medical device manufacturing.

Methodology/approach – We use an historical case study approach to trace the development of the aircraft cluster in the Wichita, KS metropolitan area. A number of technologies are identified that had initially been adopted by one firm but eventually diffused through other firms in the local cluster and ultimately throughout the industry.

Findings – In addition to providing examples of within industry knowledge spillovers, we provide an example of technology-based knowledge that is diffusing through the aircraft manufacturing industry and is now being used as the basis for establishing an unrelated industry manufacturing cluster. The use of carbon-fiber composites in aircraft manufacturing has diffused from one manufacturer to many in the industry. Subsequently, the knowledge base surrounding carbon-fiber composite materials is being used in a local R&D effort to create a second manufacturing cluster producing medical devices ranging from surgical instruments to joint-replacement implants.

Originality/value of paper – The chapter illustrates a unique example of a manufacturing cluster, intra-industry knowledge spillovers, and inter-industry knowledge spillovers to create a new manufacturing cluster.

Details

Entrepreneurship and Global Competitiveness in Regional Economies: Determinants and Policy Implications
Type: Book
ISBN: 978-1-78052-395-8

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Article
Publication date: 1 March 2011

Constantine Campaniaris, Steve Hayes, Michael Jeffrey and Richard Murray

The purpose of this paper is to identify and map trends in the Canadian apparel industry (in a global context) and, through the application of Porter's models, establish…

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5344

Abstract

Purpose

The purpose of this paper is to identify and map trends in the Canadian apparel industry (in a global context) and, through the application of Porter's models, establish strategies that could be employed by Canadian small and medium enterprizes (SMEs) in response to the move toward trade liberalisation since the phasing out of the multi‐fibre arrangement.

Design/methodology/approach

The literature review established trends in the apparel industry both in Canada and globally. Qualitative research in the form of case studies highlighted apparel suppliers' perceptions of Canada's strengths and weaknesses as a business setting and provided preliminary information on possible supplier activities which provide value and competitive advantage. The analysis of the primary data also allowed the development of preliminary questions, answers to which will further enhance the understanding of clusters and their applicability to Canada's apparel SMEs.

Findings

Canada's apparel manufacturing industry is winding down while imports are continuing to grow. At the same time, the Canadian market is not large enough to sustain all the suppliers, thus forcing those who are competitive to export, primarily to the USA, which is Canada's major apparel export destination. The morphology of related and supporting industries to apparel suppliers is changing. The findings suggest that Canada's apparel supply is becoming more of a service and less of a manufacturing industry.

Originality/value

This paper provides an understanding of Canada's position in the global apparel map and ascertains whether competitive cluster strategies exist for the Canadian apparel industry. Furthermore, it sets the stage for further research by identifying knowledge gaps pertaining to the applicability of clusters to the apparel industry and providing data and findings to bridge these gaps.

Details

Journal of Fashion Marketing and Management: An International Journal, vol. 15 no. 1
Type: Research Article
ISSN: 1361-2026

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Article
Publication date: 18 January 2016

Jesús M. Valdaliso, Aitziber Elola and Susana Franco

This paper aims to examine whether in old industrial regions, the trajectory of clusters follows that of their corresponding industry or deviates from it and which are the…

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2003

Abstract

Purpose

This paper aims to examine whether in old industrial regions, the trajectory of clusters follows that of their corresponding industry or deviates from it and which are the factors that account for cluster evolution. This paper deals with the issue of how established clusters either renew or transform themselves in such regions and how they adapt to changes in their corresponding international industries.

Design/methodology/approach

This research paper draws from in-depth case studies on six industrial clusters, takes a longitudinal perspective and uses a multi-level and qualitative analysis. Based on existing literature, the paper suggests and exploratory analytical framework with four alternative scenarios for cluster evolution and three broad factors: cluster knowledge base, social capital at cluster and region-level and public policies.

Findings

Clusters do not always follow the life cycle of its dominant industry. The paper clearly shows a diversity of cluster evolution across clusters and even within clusters (at subcluster level). This study suggests that cluster knowledge diversity and heterogeneity allow to broaden the scope of evolutionary trajectories available; the same goes for social capital at cluster and region levels.

Research limitations/implications

The main limitation of this paper lies in its qualitative approach that makes its conclusions more suggestive than conclusive. In any case, further research on other Basque clusters may corroborate or question its findings.

Originality/value

The paper offers an empirical and longitudinal study on cluster evolution, very much needed to the ongoing theoretical discussion on this issue. So far, there are very few empirical studies on cluster evolution with this perspective. At the same time, it presents a theoretical framework to analyse diversity of cluster evolution in old industrial regions that builds on Menzel and Fornah’s (2010) model.

Details

Competitiveness Review, vol. 26 no. 1
Type: Research Article
ISSN: 1059-5422

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Article
Publication date: 20 May 2019

Mathieu Resbeut, Philippe Gugler and Danuvasin Charoen

The paper aims to investigate the role of specialization and agglomeration forces on industry performance in an emerging market, namely, Thailand. In particular, the…

Abstract

Purpose

The paper aims to investigate the role of specialization and agglomeration forces on industry performance in an emerging market, namely, Thailand. In particular, the impact of clusters and the influence of complexity will be tackled.

Design/methodology/approach

The methodology used is based on the work of Delgado et al. (2014). Industries and clusters are assigned to a certain category according to their respective level of specialization and complexity. Performance measures are then computed for each category.

Findings

It was found that the agglomeration of similar industries and co-located and related industries increase the performance of firms in terms of gross output per employee and remuneration per employee. Moreover, the increase of performance induced by the complexity level of an industry was closely related to the level of specialization.

Originality/value

Building on a cluster mapping, this study brings new insight on the effect of specialization and agglomeration on performance in emerging markets. In fact, the paper show how performance can be enhanced in less sophisticated and developed economies.

Details

Competitiveness Review: An International Business Journal , vol. 29 no. 3
Type: Research Article
ISSN: 1059-5422

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