What is it about?
The theories on the clustering phenomenon put forth by the thinkers in the last seventy years are organised around the themes of Clusters, Innovation and Competitive Advantage ( by strategists from the late seventies); Clusters and Agglomeration Externalities ( by industrial and geographical economists since the nineteen twenties); Clusters and Linkages (by economists and strategists). It concludes around the two main effects attributed to clusters – positive feedback, and, productivity and growth - and finally the article observes some famous clusters around the world.
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Why is it important?
This paper seeks to review the state of knowledge to this much talked-about paradigm, first made famous by Porter (1990) - who have become aware of its central importance in competitive strategy. While clusters have been explored in a wide range of literature, some valuable insights on how clusters enhance the value chain and promote innovation is revealed in this article. An understanding of clusters adds an important dimension to the more commonly debated role of personal contact networks in the success of entrepreneurial small business.
Perspectives
Cluster theory bridges network theory and competition as suggested by Porter (1998c). Within a geographical location, the proximity of firms and institutions ensures commonality, increases impact and frequency of interactions. All these have implications for the small entrepreneurial business and marketing entrepreneurship interface. The latter traditionally has shown a research strength in the understanding of the immense value of personal contact networks whilst my paper discussed the contextual landscape in which many of these personal contact networks will be enacted. Adrian T H Kuah read his PhD from Manchester, ITP from Bocconi, and MBA from Strathclyde. He published more than 58 papers, with his work appearing in prestigious outlets such as the Oxford University Press, Thunderbird International Business Review, European Journal of Marketing and R&D Management. In 2013, he was named by the UK Financial Times as Professor of the Week.
Adrian T. H. Kuah
James Cook University
Read the Original
This page is a summary of: Cluster Theory and Practice: Advantages for the Small Business Locating in a Vibrant Cluster, Journal of Research in Marketing and Entrepreneurship, October 2002, Emerald,
DOI: 10.1108/14715200280001472.
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