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Article
Publication date: 9 April 2019

Ioannis Lagoudis, Eleftherios M. Madentzoglou, Ioannis N. Theotokas and Tsz Leung Yip

The role of clusters in the development and growth of local and national economies has been extensively studied and discussed in global literature. Different methodologies are…

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Abstract

Purpose

The role of clusters in the development and growth of local and national economies has been extensively studied and discussed in global literature. Different methodologies are used for analysing the impact these have in national and regional economies, such as the input–output (IO) and gravity models. This paper aims to detail the methodologies present in the literature and propose a new robust theoretical framework, which facilitates the evaluation and comparison among maritime clusters in terms of attractiveness assisting stakeholders to devise strategies, which will attract companies.

Design/methodology/approach

An index is created composed of five key categories, namely, infrastructure, financing, governance, manpower and institution/legislation. For the analysis of the index, multi-attribute utility theory (MAUT) is used as a tool to evaluate the importance and performance of the different attributes using both quantitative and qualitative criteria. The methodology has been tested via the use the Piraeus maritime cluster.

Findings

The framework has been tested on its robustness and friendliness to the user providing useful insights to the stakeholders. Among the results has been the importance of the finance, manpower and infrastructure attributes, which appear to promote the cluster’s attractiveness. In addition, legislation and institutional partnerships, along with Government support, need to take place improve the performance of the cluster.

Research limitations/implications

A key limitation is the fact that the methodology has been tested in a single case. Applying the methodological framework in a wider sample of clusters will significantly improve the present work.

Originality/value

The proposed model takes further existing research in the field via adopting the philosophy of the World Bank’s Logistics Performance Index. Among the benefits of the proposed index is that it offers the flexibility and robustness to compare among different maritime clusters globally and can be readily used as a benchmarking policy tool at national, regional and global levels at any given point in time and attribute dimension.

Details

Maritime Business Review, vol. 4 no. 2
Type: Research Article
ISSN: 2397-3757

Keywords

Content available
Article
Publication date: 24 October 2018

Cengiz Bahadir Karahan and Levent Kirval

Turkey is a maritime country with its current merchant fleet and shipyards, geographical location, young population and growth potential. Clustering, being one of the important…

1276

Abstract

Purpose

Turkey is a maritime country with its current merchant fleet and shipyards, geographical location, young population and growth potential. Clustering, being one of the important improvement methods of global competition power, is widely used in the maritime sector. Analysing the clustering level and potential of Istanbul, which is the major city of Turkey, in regard to economic and social aspects is a basic step for increasing global competitiveness in this sector. This study aims to measure the clustering level of Istanbul’s maritime sector and also define the effect of clustering level on firm performance.

Design/methodology/approach

The clustering levels of Istanbul’s maritime transportation and supporting firms, shipyards and maritime equipment manufacturers are measured by means of a survey based on Porter’s diamond theory in this paper. The relationship between clustering level and firm performance is defined by using simple linear regression and fuzzy linear regression methods. The weights of the criteria are calculated by means of entropy method.

Findings

It is concluded that despite its deficits, Istanbul’s maritime sector has significant potential to become a major maritime cluster not only in its region but also worldwide. The effect of clustering level on firm performance was observed to be statistically significant, but not high. The results of the simple linear regression and fuzzy linear regression methods are compared.

Originality/value

According to the author’s knowledge, this paper is the first study using fuzzy linear regression and entropy methods to analyse maritime clusters. It evaluates the effect of clustering level on firm performance in the case of Istanbul maritime sector.

Details

Maritime Business Review, vol. 3 no. 3
Type: Research Article
ISSN: 2397-3757

Keywords

Article
Publication date: 24 August 2021

Shahrin Osman, Balan Sundarakani and Torger Reve

This article analyses the role of cluster facilitators in the Singapore maritime cluster. Singapore has been recognised for its pro-business policies and its ability to attract…

Abstract

Purpose

This article analyses the role of cluster facilitators in the Singapore maritime cluster. Singapore has been recognised for its pro-business policies and its ability to attract international shipping companies to set up the ship ownership headquarters and ship management activities in Singapore.

Design/methodology/approach

The research is an empirical investigation on the approach for industrial cluster development of the Singapore maritime cluster, using the case study research methodology. The case study approach leverages on multiple sources of evidence from deep interviews (of 24 Singaporean firms and 13 Norwegian firms) related observations, documentation and archival records. As a means of contributing to the cluster renewal process, Singapore as the country embarks on the next stage of maritime cluster development, a benchmarking against the Norwegian Innovation Cluster has been incorporated.

Findings

The research findings reveals that Singapore is lacking in innovation activities that entails multi-firms collaborations and collaboration between multi-firms and research institutions. The existence of cluster organisation to facilitate collaborations between firms in the cluster and between firms in the cluster with research institutions is another contributing factor that are not institutionalised in the Singapore maritime cluster.

Research limitations/implications

Though the research is grounded primarily on the international business theory, particularly from firm- and country-specific advantages of location decisions, the economic geography theory and cluster theory also complement the theoretical grounding.

Practical implications

The findings derived from this research aim to facilitate policy makers, maritime leaders and practitioners to develop effective courses of action in current and future maritime industry development.

Originality/value

The research provides value to maritime industry stakeholders, maritime leaders and policy makers in their firm positioning strategy. Thus, the research adds values to the maritime industry with similar country perspectives and firm values for developing policies.

Details

Benchmarking: An International Journal, vol. 29 no. 5
Type: Research Article
ISSN: 1463-5771

Keywords

Article
Publication date: 19 October 2015

Torger Reve and Amir Sasson

This paper aims to assess the dissemination of cluster ideas advanced in the “Competitive Advantage of Nations” and three subsequent national studies and the reasons for their…

1727

Abstract

Purpose

This paper aims to assess the dissemination of cluster ideas advanced in the “Competitive Advantage of Nations” and three subsequent national studies and the reasons for their substantial public policy impact in Norway.

Design/methodology/approach

The paper presents the theoretical and methodological novelties of each of the national studies, the inclusive study-organizing principle used and public policy impact.

Findings

The papers finds that the dissemination of cluster thinking and the development of a successful cluster-based industrial policy in Norway is largely a function of the nature and extent of the cluster research efforts that took place in Norway. The national cluster research projects mobilized all the key industrial and governmental actors in a very effective way, making studies with both rigor and relevance. Due to advanced and demanding policy makers, the studies also evolved in terms of the theoretical models and methodologies used.

Originality/value

The paper contributes by illuminating the direct and indirect impact of the “Competitive Advantage of Nations” on both academic endeavors and public policies in Norway and by explicating how studies that make it possible for academics and practitioners to work in tandem substantially affect public policy.

Details

Competitiveness Review, vol. 25 no. 5
Type: Research Article
ISSN: 1059-5422

Keywords

Content available
Article
Publication date: 14 May 2020

Shu-Man Chang, Yo-Yi Huang, Kuo-Chung Shang and Wei-Tzu Chiang

The proposed Regional Comprehensive Economic Partnership (RCEP) will become a large trade agreement in Asia, which has brought together the ten members of Association of Southeast…

3867

Abstract

Purpose

The proposed Regional Comprehensive Economic Partnership (RCEP) will become a large trade agreement in Asia, which has brought together the ten members of Association of Southeast Asian Nations (ASEAN) and five of the neighbors’ countries. Under the trend of globalization, the progress of the transportation industry and regional integration will increase the volume of trade, therefore maritime performance is intrinsically linked to trade. In fact, few studies have examined regional integration in the context of seaborne. This paper aims to use the cluster analysis and Poisson quasi-maximum likelihood (PQML) gravity model to investigate the trading bloc phenomenon and relation between trade and marine transportation.

Design/methodology/approach

In this paper, hierarchical clustering analysis and tree diagrams are used to identify functional areas characterized by bilateral trade intensity and bilateral liner shipping connectivity indices. Regional reorganizations that have occurred within Asian countries were studied. This study illustrates that these trading blocs have a positive impact on trade when maritime transport, production and trading networks have developed between regions. A gravity model was constructed using worldwide trade data for 2007, 2010 and 2015. The study considered free trade agreement (FTA)/common market (CM) of EU, RCEP and North American Free Trade Agreement (NAFTA) as regional dummies and designed a real trade bloc induction variable. In addition, the study did not use the commonly adopted ordinary least squares (OLS) estimation but used the PQML method to estimate the gravity equation to overcome the problem of a large number of zero trade observations. Preliminary results show that regional integration cannot guarantee the establishment of intraregional trade but depends on the stage of economic development and regional industrial characteristics.

Findings

The major findings are summarized as follows. Both liner shipping connectivity and logistics performance have significant advantages with positive coefficients in each regression results. The creation of intraregional trade is not guaranteed, depending on the characteristics of the trade and the stage of economic development of the region. For RCEP, the effect created by intra-regional trade is better than the EU. Instead, the “nominal” intra-RCEP trade was significantly below the “real” trading blocs. For RCEP, the effect created by intra-regional trade is better than that of the EU. Instead, “nominal” intra-RCEP trade is much lower than “real” trading blocs. The real trading bloc between East Asia and Taiwan clearly exists, and the bloc phenomenon is becoming more and more significant. This result shows that Taiwan’s trade flow with East Asia is higher than the normal level relationship implied by its corresponding economic and geographical conditions.

Originality/value

This paper focuses on new empirical work done for this study is on the potential impact on trade. Earlier studies that have discussed and/or provided estimates of the benefits to the RCEP plan from improved transport and supply chain connectivity are cited. Marine transportation performance inherently links to economies of commerce. Few studies have examined regional integration in the context of maritime transportation, which reflects the lack of a mix of trade economists and maritime logistics research in the existing literature. This paper attempts to investigate the trading bloc phenomenon formed by regional integration (such as RCEP) and the relation between trade and marine transportation. With the official entry into force of the RCEP in 2020, it will promote increased trade and demand for logistics and maritime transport services in East Asia.

Details

Maritime Business Review, vol. 5 no. 2
Type: Research Article
ISSN: 2397-3757

Keywords

Article
Publication date: 3 March 2014

Trond Hammervoll, Lise Lillebrygfjeld Halse and Per Engelseth

– The paper aims to explore the effects of geographic proximity among firms in value networks on service provision and service exchange.

1334

Abstract

Purpose

The paper aims to explore the effects of geographic proximity among firms in value networks on service provision and service exchange.

Design/methodology/approach

A case study of the offshore supply vessel shipbuilding and shipping cluster in the North-Western Møre region of Norway with focus on the new ship contracting process.

Findings

The case study reveals how service provision and service exchange are facilitated by geographical proximity among firms.

Research limitations/implications

Study findings should be validated in further research, and the effects of other forms of proximity (cultural, social, cognitive and institutional) on co-creation of value also need to be considered. Considering the role of operant resources in developing competence in clusters and wider value networks offers interesting opportunities for further research.

Originality/value

This study proposes an alternative view of co-creation of value in value networks and responds to calls for research on how value network attributes affect aspects of co-creation of value: service provision and service exchange. The study contributes to more knowledge on the systemic nature of value creation in value networks.

Details

International Journal of Physical Distribution & Logistics Management, vol. 44 no. 1/2
Type: Research Article
ISSN: 0960-0035

Keywords

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 factors…

2114

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

Keywords

Article
Publication date: 18 May 2015

Amir Sasson and Torger Reve

The purpose of this paper is to present a novel application of cluster theory and cluster methodology to evaluate large infrastructure investments. The complementing clusters

Abstract

Purpose

The purpose of this paper is to present a novel application of cluster theory and cluster methodology to evaluate large infrastructure investments. The complementing clusters approach, which builds on the notion of infrastructure as connecting isolated “economic islands”, is able to assess the potential for value creation effects of new infrastructure investment.

Design/methodology/approach

The author uses simulation analysis based on a unique data set encompassing all employees and employers, as well as cluster mapping, for every pair of “economic islands” being connected by the examined infrastructure investments. The empirical setting is of large fjord crossings in Western Norway, the so-called E39 project.

Findings

The empirical findings show that productivity gains are higher when an integrated labor market hosting complementary clusters is formed. Limitations remain regarding the economic integration path.

Research limitations/implications

The authors provide an ex-ante analysis using information over the past 10 years. Following the expected infrastructure investments, future research should examine the extent to which productivity gains materialized and the reasons underlying the achieved materialization levels.

Practical implications

Current evaluation of large infrastructure investments focuses on transportation economics effects, technical feasibility and environmental consequences. The authors complement this current practice by advancing a theoretically grounded value creation perspective that can affect future evaluation practices.

Originality/value

Cluster complementarity-based evaluation is a novel methodology that is applicable to investment decisions which are central for economic development. Cluster analysis of infrastructure investments provides new and valuable data for making such investments decisions.

Details

Competitiveness Review, vol. 25 no. 3
Type: Research Article
ISSN: 1059-5422

Keywords

Article
Publication date: 29 June 2010

Marina Z. Solesvik and Paul Westhead

The purpose of this exploratory study is to examine the partner selection criteria reported by maritime firms in Norway. The study aims to analyze how a maritime firm's…

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Abstract

Purpose

The purpose of this exploratory study is to examine the partner selection criteria reported by maritime firms in Norway. The study aims to analyze how a maritime firm's competitive advantage can be enhanced by the selection of the right partner with reference to a strategic alliance.

Design/methodology/approach

A multiple‐case study methodology was used. Archival, survey and interview data were explored relating to the partner selection process reported by Norwegian maritime firms. Primary data were gathered from semi‐structured personal interviews with managers of Norwegian maritime firms.

Findings

Case study evidence suggests that the strategic alliances were successful when partners had been carefully selected. As detected elsewhere, successful alliances were associated with partners that had managed to build trustful and honest relationships, had common strategic goals, and partners that supplied resources and competencies. Notably, it was detected that cyclicality in the maritime industry shaped the partner selection process. Trust between partners was used as mechanism to reduce uncertainty relating to the strategic alliance process. Firms seeking long‐term alliances selected partners with substantial capital and financial stability to survive a market's downturn, as well as the resources required for expansion during a recession.

Practical implications

Presented findings have implications for practitioners, especially for managers of shipping firms, banks, shipyards, producers of ship equipment, ship design firms, and ship brokers. Practitioners need to be aware that the rationale for inter‐firm collaboration change over time, and motives are linked to the phase of the maritime cycle. Inter‐firm collaboration provides competitive advantage benefits to firms and collaboration can protect as well as create jobs and can create wealth in maritime communities.

Originality/value

A novel conceptual contribution is the exploration of links between maritime industrial cyclicality and the partner selection process relating to strategic alliances. The study also adds to debates relating to the profiles of internationalizing smaller firms.

Details

Industrial Management & Data Systems, vol. 110 no. 6
Type: Research Article
ISSN: 0263-5577

Keywords

Article
Publication date: 10 January 2022

Amanpreet Singh, Prem Chhetri and Rajiv Padhye

The paper models the effect of spatial clustering on various dimensions of inter-firm competitive rivalry among port logistics firms using Porter's five forces model.

Abstract

Purpose

The paper models the effect of spatial clustering on various dimensions of inter-firm competitive rivalry among port logistics firms using Porter's five forces model.

Design/methodology/approach

A survey-based quantitative approach is adopted to collect data from logistics firms, which are directly or indirectly dependent on the Port of Melbourne in Australia. A structural equation modelling (SEM) technique is used to examine the theorised relationships between various dimensions of inter-firm competitive rivalry and the tendency of spatial clustering of logistics firms in the vicinity of Port of Melbourne.

Findings

The results indicate that the inter-firm competitive rivalry increases significantly when logistics firms are spatially clustered. This effect is further augmented when they cluster around the port. Co-location of firms near the port tends to increase “bargaining power of buyers”, whilst indirectly affecting “competitive rivalry” via “threats of substitutes”. This indicates that co-location enhances the bargaining power of buyers through the greater availability of substitute services that in turn promotes competitive rivalry among firms. However, co-location has an insignificant effect on “barriers to entry” and “bargaining power of suppliers”. Low entry barrier thus favours high competitive rivalry among firms. Hence, this paper validates the Porter's cluster and five forces models that confirm the positive effect of port logistics clusters (PLCs) on bargaining power of buyers and indirect effect on competitive rivalry partially mediated through threats of substitutes.

Practical implications

This study provides empirically grounded evidence for firms to evaluate co-location decision choices and help buyers and sellers to devise business strategies to enhance inter-firm competitive rivalry and bargaining power.

Originality/value

This is the first systematic attempt to empirically validate Porter's five forces model in the context of PLC. Furthermore, the conceptualisation of PLC concept both as spatial and functional constructs (i.e. dependency on port) is novel. This study thus has broadened the meaning of cluster from a geographic entity to a more useful functional construct to reflect inter-firm dependencies.

Details

The International Journal of Logistics Management, vol. 33 no. 2
Type: Research Article
ISSN: 0957-4093

Keywords

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