Value-chain clustering as an alternative strategy for small-scale and micro firms
Part of : MIBES Transactions : international journal ; Vol.3, No.1, 2009, pages 46-63
Issue:
Pages:
46-63
Abstract:
Small-scale and micro industries (SSMIs) have received considerable attention in development strategies and policies. On the other hand, the past decade, industrial clusters have emerged as critical forces in economic development strategic planning. The debate of clustering as alternative strategy for SSMI development has dominated many discussions in economic literature. The main objective of the present paper is to explore the motives of SSMIs producing Upholstered Furniture that lead to the creation of a value chain cluster. It examines goals, objectives and investments in relevance with the existing problems and the business leaders' mentality, in order to determine the needs and mix of attitudes necessary to create a promising value chain cluster that enchances productivity and overall performance. Empirical data was acquired through a recent study of 50 Greek micro and small firms, involved in the Upholstered Furniture industry and localised in the area of Attiki. Regression analyses examine the correlation between these firms' problems, expected goals and investment objectives and the commitment to the creation of a value chain cluster. The survey findings provide empirical evidence of current status in Greek Furniture firms. The lack of specialized personell, economic instability and bureaucracy are the most important problems that strenghten the decision of clustering. Becoming more competitive through promotion actions and New Products Development appear to be the most powerful expected goals, while the investment priority decisions tend to be Quality and Productivity improvements and Marketing development. The study creates new options and leads to guidelines able to justify the creation of successful clusters in regional or national policies.
Subject:
Subject (LC):
Keywords:
value chain cluster, upholstered furniture industry, small and micro firms
Notes:
Περιέχει πίνακες και βιβλιογραφία, JEL Classification: L20
