The cluster approach and SME competitiveness: a review

Abstract

If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service information about how to choose which publication to write for and submission guidelines are available for all. Please visit www.emeraldinsight.com/authors for more information. About Emerald www.emeraldinsight.comEmerald is a global publisher linking research and practice to the benefit of society. The company manages a portfolio of more than 290 journals and over 2,350 books and book series volumes, as well as providing an extensive range of online products and additional customer resources and services.Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the Committee on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive preservation. AbstractPurpose -The purpose of this paper is to review the effect of a cluster approach on SMEs' competitiveness. The primary objective is to examine the use of a cluster approach among SMEs as a tool for meeting their challenges related to globalisation and trade liberalisation, as well as investigating its contributing factor in the process of increasing their competitiveness. Design/methodology/approach -The methodology used for this paper is a literature review of published materials. The literature analysis was performed based on research objectivity, coverage and authority. Findings -There is strong evidence to suggest that a cluster policy brings additional positive effect to existing SME policy in industrialised economies, but such effects have not been extensively researched in developing (transition) countries, particularly from the point of view of the SMEs, which are the main actors in the cluster development process, in relation to whether their performance has been improved as a result of cluster effects. Originality/value -The findings from this research will assist business managers in making more informed decisions regarding the adoption of a cluster approach and entering into cluster-based relations, as well as assisting policy makers in designing more efficient cluster policies. The academic value will be added in the context of expanding knowledge in relation to the impact of clusters on economic development in transition countries and as such contribute in filling gaps within the existing body of knowledge.

Towards a new framework for SMEs success: a literature review

“…Business networks have a strong effect on firm performance and are generally accepted as an important strategy to help small businesses survive and prosper and to promote regional economic development (Bennett and Ramsden, 2007;Corolleur and Courlet, 2003;Flatten et al, 2011;Greve and Salaff, 2003;Huggins, 2000;Islam et al, 2011;Lee, 2007;Phillipson et al, 2006;Witt, 2004). Karaev et al (2007), in their review of the effect of a cluster approach on SMEs (based on 250 articles and 50 conference papers), also conclude that entering into cooperative relations with other SMEs and related partner institutions has a positive effect on competitiveness. Prior studies further suggest that business networks show their positive effects in the long term reinforcing their impact on long term survival (Baum and Locke, 2004;Chrisman and McMuUan, 2004;Ciavarella et al, 2004;Frank et al, 2007;Korunka et al, 2004).…”

The Impact of Clusterization on the Development of Small and Medium‐sized Enterprise (Sme) Sector

“…Other benefi ts of clusterization to SMEs are presented in Table. There is strong evidence to suggest that a cluster-based policy brings additional positive effect to existing SME policy in industrialized economies, but the positive effect has not been extensively researched in developing (transition) countries, particularly from the point of view of the SMEs, which are the main accelerators in the cluster development process, with regard to whether their performance has improved as a result of cluster effects (Karaev et al 2007). …”

Analysis of the interplay between knowledge and performance management in industrial clusters

“…This topic has drawn special attention from researchers and policy makers, who have made efforts to promote regional development by strengthening local economies (Sölvell et al, 2003). This may also favour smaller firms, who can more easily combine specific capabilities at the regional level to compete at national or global levels (Karaev et al, 2007). These benefits of agglomeration go beyond those of external economies, which tend to emerge naturally in industrial clusters.…”