Do clustered firms outperform the non-clustered? Evidence of financial performance in traditional industries

Abstract

Previous research presented in numbers of studies strongly suggests that locating in a cluster generates valuable benefits to clustered firms. These include better access to suppliers and other scarce inputs, superior knowledge and innovation, a better position from which to build a social network as well as proximate to successful competitors. Yet when the positive impact of agglomeration and clustering has been questioned on the strictly financial performance of clustered firms, the results of these studies are not so convincing and question the enthusiasm for cluster theory shown by scholars, practitioners, and policymakers. The aim of our research is to enrich existing knowledge concerning the benefits of clustering, as well as to test if localisation in a natural cluster, and membership in a cluster organisation has a positive impact on financial performance. We propose to measure that by selected financial indicators such as ROA, ROS, labour productivity and Economic Value Added, focussing our research on traditional industrial sectorsplastics and textiles seated in the Czech Republic. The results of analysing firm-level data in the period of 2009-2016 fail to confirm any significant influence of firm localisation in natural cluster or membership in the cluster organisation on financial performance for firms in studied sectors. We achieved the same results by investigation of potential differences for young firms, SMEs or underperforming firms.

Application of Social Network Analysis to Visualization and Description of Industrial Clusters: A Case of the Textile Industry

“…Inter-organizational collaboration within a cluster allows achieving a synergy effect through the sharing of resources, use of common infrastructure, and coordination of strategies (Sheresheva 2010;Khakimov 2019;Razminien ė et al 2021). One can say that the competitiveness of clusters lies within the most common things: knowledge, relationships, innovations, a common pool of resources, and digital transformations (Pavelkova et al 2021). At the same time, if we consider clusters as network structures (Bergenholtz and Waldstrøm 2011), then there is a need for a mechanism to align the different interests of stakeholders and coordinate their actions.…”

“…Actually, benefits for cluster members are usually asymmetric (McCann and Folta 2011). Some authors also argue that in many cases, clustering appears to be not a way to develop competitiveness but simply a way to survive (Pavelkova et al 2021).…”

Tracing Relationship between Cluster’s Performance and Transition to the Circular Economy

“…It is often suggested that companies that belong to a cluster often outperform companies that work on their own. Advantages such as higher salaries, better recognition of a product or service provided, easier access to funding, frequent participation in fairs, as well as better financial indicators and many more are mentioned in scientific literature [19]. Clusters can be initiated through different perspectives.…”

Improvement of the Model of an Innovative University-Type Cluster in a Case Example of Coordinated International Organizations Involved in the Metallurgical Industry

“…Recently, the role and position of universities in industrial clusters has received attention. Many authors [5,7] believe that universities "open the door" to the world of international cooperation and partners and provides an irreplaceable research base. Also under discussion are the conditions for the creation of associations, such as first-rate, efficient organizational structures, coordination and information networks, stimulation of interaction, and issues of size and distribution of resources [7].…”

“…Many authors [5,7] believe that universities "open the door" to the world of international cooperation and partners and provides an irreplaceable research base. Also under discussion are the conditions for the creation of associations, such as first-rate, efficient organizational structures, coordination and information networks, stimulation of interaction, and issues of size and distribution of resources [7]. Some analyses of the conceptual gaps in cluster theory point to the inefficiency of large corporations' participation in clusters and argue that it is only beneficial to small businesses with the help of large partners [7].…”