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Enterprise clusters in developing countries: mechanisms of transition and stagnation

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  • Meine Pieter Van Dijk
  • Árni Sverrisson

Abstract

This paper analyses the dynamics of clustered enterprise development in developing countries. It is focused on the different types of clusters that can be identified in these contexts. After a brief introduction, the cluster concept is explained and the need to understand clusters as an expression of social connectivity rather than mere spatial agglomerations is established. Next, a typology of clusters is presented. This typology is discussed on the basis of recent research on small and medium-sized enterprise clusters in different countries and continents. The types of linkages prevailing in different types of clusters are analysed, as well as their implications for technological change. It is argued that the mechanisms of enterprise growth and innovative activity are different in each type of cluster and hence the opportunity structures that entrepreneurs face are variable across cluster types. Therefore, the mechanisms of transition from one type to another are different, and these are discussed next, as well as mechanisms of stagnation and continuity. In conclusion, the implications for development research and policy are outlined and it is emphasized that support must be tailored to the actual state of existing clusters and cannot be deduced from general theory.

Suggested Citation

  • Meine Pieter Van Dijk & Árni Sverrisson, 2003. "Enterprise clusters in developing countries: mechanisms of transition and stagnation," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 15(3), pages 183-206, July.
    • Handle: RePEc:taf:entreg:v:15:y:2003:i:3:p:183-206
    DOI: 10.1080/08985620210159239
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    Cited by:

    1. Marta Gancarczyk, 2010. "Model schyłku i odrodzenia klastrów," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 3, pages 1-21.
    2. Jörg Peters & Maximiliane Sievert & Christoph Strupat, 2015. "Impacts of a Micro-Enterprise Clustering Programme on Firm Performance in Ghana," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 27(1), pages 99-121, January.
    3. Carlos Sangreman & Sandra Silva, 2012. "The New Tool of Portuguese Cooperation: Cooperation Clusters / O Novo Instrumento da Cooperação Portuguesa: Clusters de Cooperação," CEsA Working Papers 113, CEsA - Centre for African and Development Studies.
    4. Macpherson, Allan & Holt, Robin, 2007. "Knowledge, learning and small firm growth: A systematic review of the evidence," Research Policy, Elsevier, vol. 36(2), pages 172-192, March.
    5. Gebreeyesus, Mulu & Mohnen, Pierre, 2013. "Innovation Performance and Embeddedness in Networks: Evidence from the Ethiopian Footwear Cluster," World Development, Elsevier, vol. 41(C), pages 302-316.
    6. Harris, John, 2014. "The Messy Reality of Agglomeration Economies in Urban Informality: Evidence from Nairobi’s Handicraft Industry," World Development, Elsevier, vol. 61(C), pages 102-113.
    7. Yasser Al-Saleh, 2018. "Crystallising the Dubai model of cluster-based development," Place Branding and Public Diplomacy, Palgrave Macmillan, vol. 14(4), pages 305-317, November.
    8. Jan Van der Lee & Laurens Klerkx & Bockline Omedo Bebe & Ashenafi Mengistu & Simon Oosting, 2018. "Intensification and Upgrading Dynamics in Emerging Dairy Clusters in the East African Highlands," Sustainability, MDPI, vol. 10(11), pages 1-24, November.
    9. Anna Maria Lis & Marita McPhillips & Adrian Lis, 2020. "Sustainability of Cluster Organizations as Open Innovation Intermediaries," Sustainability, MDPI, vol. 12(24), pages 1-16, December.
    10. Sforzi, Fabio, 2007. "The industrial districts' contribution to change in the Italian economy," MPRA Paper 40056, University Library of Munich, Germany.
    11. Jörg Peters & Maximiliane Sievert & Christoph Strupat, 2013. "Impacts of a Micro-Enterprise Clustering Program on Firm Performance in Ghana," Ruhr Economic Papers 0407, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    12. Gurrieri, Antonia Rosa & Petruzzellis, Luca, 2006. "Local Networks to Compete in the Global Era. The Italian SMEs Experience," Knowledge, Technology, Human Capital Working Papers 12096, Fondazione Eni Enrico Mattei (FEEM).
    13. Asadifard, Reza & Tabatabaeian, Seyed Habiboallah & Sofi, Jahanyar Bamdad & Taghva, Mohammad Reza, 2017. "A model for investigating the stability factors in formal science and technology collaborative networks: A case study of Iran," Technological Forecasting and Social Change, Elsevier, vol. 122(C), pages 139-150.
    14. repec:zbw:rwirep:0407 is not listed on IDEAS
    15. Maxim Mikhailovich Palt, 0. "Features of Cluster Life Cycle Stages," Administrative Consulting, Russian Presidential Academy of National Economy and Public Administration. North-West Institute of Management., issue 3.
    16. Pulles, Niels J. & Schiele, Holger, 2013. "Social Capital Determinants of Preferential Resource Allocation in Regional Clusters," management revue - Socio-Economic Studies, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 24(2), pages 96-113.
    17. Lis Anna Maria & Lis Adrian, 2016. "Factors Affecting Group Identity of Cluster Structures," Journal of Intercultural Management, Sciendo, vol. 8(2), pages 125-152, June.
    18. Anna Wasiluk & Fahime Sadat Saadatyar, 2020. "Inter-organizational trust as a statement of social proximity," Journal of Entrepreneurship, Management and Innovation, Fundacja Upowszechniająca Wiedzę i Naukę "Cognitione", vol. 16(3), pages 77-100.
    19. Fiorenza Belussi & Alessia Sammarra, 2006. "Evolution and Relocation in Fashion-led Italian Districts: Evidence from two Case-Studies," "Marco Fanno" Working Papers 0023, Dipartimento di Scienze Economiche "Marco Fanno".
    20. Murphy, James T., 2007. "The Challenge of Upgrading in African Industries: Socio-Spatial Factors and the Urban Environment in Mwanza, Tanzania," World Development, Elsevier, vol. 35(10), pages 1754-1778, October.

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