Uncovering and Developing Industry Clusters
Abstract
ABSTRACT
This paper observes that the existing definitions of clusters can be grouped under two categories: intra-industry clusters, and inter-industry clusters. Economic geographers and strategy researchers suggest “intra industry” conceptualisations of clusters. Regional economists subscribe to the Porterian model of clusters that focuses on inter-industry linkages. While we agree that clusters should assess inter-industry linkages, we argue that the process of identifying clusters should begin at the intra-industry level. A conceptual framework based on ‘strategic groups’ theory and value system analysis is developed as an explanation for industry clusters.
Keywords: Strategic Groups, Value System Analysis, Regional Economics
This paper observes that the existing definitions of clusters can be grouped under two categories: intra-industry clusters, and inter-industry clusters. Economic geographers and strategy researchers suggest “intra industry” conceptualisations of clusters. Regional economists subscribe to the Porterian model of clusters that focuses on inter-industry linkages. While we agree that clusters should assess inter-industry linkages, we argue that the process of identifying clusters should begin at the intra-industry level. A conceptual framework based on ‘strategic groups’ theory and value system analysis is developed as an explanation for industry clusters.
Keywords: Strategic Groups, Value System Analysis, Regional Economics
Contemporary Management Research / CMR / ISSN 1813-5498
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