Critical success factors of rice mills located in a cluster

Purpose - A geographically proximate group of rice mills, supporting companies, suppliers, and associated institutions in a particular field is emerging as a concept to make rice mills more competitive. The factors, which emerged due to cluster formation, appear to have the potential to contribute to the performance of rice mills. The purpose of this paper is to investigate the effect of a rice mill cluster initiative. The primary objective is to identify the critical factors of a successful rice mill cluster initiative. To meet this objective, a questionnaire is developed for the assessment of effects of cluster elements. Design/methodology/approach - The methodology used for this paper is an exploratory cross‐sectional and literature review of published materials. Findings - There is strong evidence to suggest that a cluster policy brings additional positive effect to existing small enterprises such as rice mills located in a cluster. Originality/value - This study offers initial empirical evidence and a number of important insights to assist managers and policy makers in enhancing performance of rice mills located in a cluster. The findings from this research will assist strategy makers 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 developing countries and as such contribute in filling gaps within the existing literature.