Methodological Framework for Studying SME Clusters

There are several dimensions to explaining the rate and nature of ICT diffusion among SMEs in developing countries. For one, there is the role of the institutional environment that is different across countries but uniformly underdeveloped compared to the more industrialized context. Second, there is the intervening role of clustering that creates a ‘network’ effect within the geographic space of industrial clusters. Again, SMEs are a highly heterogeneous group with different size structures and trade orientations. For instance, while relatively small firms characterized by financial and technical resource constraints rely mainly on the domestic market, medium to large firms with considerably higher technological competencies tend to venture into export markets.