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Antecedents to logistic clustering

Author

Listed:
  • Tom Morgan
  • Richard Tarpey
  • J. Ricky Fergurson

Abstract

This research aims to increase the exploration of the phenomena of logistic clustering. Purposeful clustering of firms into areas of dense logistical activity is an emerging business phenomenon. Paradoxically, logistical activity collapses into localised centres as trade expands. Drawing on sparse research in this area, we see logistic clustering as networks of businesses connected by logistics activity. Firms relocating into logistics clusters are witness to benefits associated with productivity, innovation, and market reach while mitigating challenges associated with strict relationship governance. This study builds on prior research to derive an analytical decision framework for site selection incentives. Mechanisms driving firm relocation decisions are a critical factor in the success and sustainment of each logistical cluster. The proposed framework provides a nascent viewpoint on why firms find logistics clusters advantageous. Practical implications of this framework could be of great importance to firms seeking to derive competitive advantages in site selection decisions.

Suggested Citation

  • Tom Morgan & Richard Tarpey & J. Ricky Fergurson, 2023. "Antecedents to logistic clustering," International Journal of Logistics Economics and Globalisation, Inderscience Enterprises Ltd, vol. 10(3), pages 274-288.
    • Handle: RePEc:ids:injleg:v:10:y:2023:i:3:p:274-288
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