Skip to main content
placeholder image

The factors of SME cluster developments in a developing country: the case of Indonesian clusters

Conference Paper


Download full-text (Open Access)

Abstract


  • Since cluster development factors become a critical issue in the debate of the industrial

    cluster literature, several scholars have attempted to seek the variables that influence the

    cluster growth. This paper presents the case of the wood furniture cluster of Bukir-

    Indonesia to explain the development of SME clusters by identifying its influential factors.

    We utilize the model proposed by Parrilli (2009) that includes collective efficiency, social

    capital, and policy inducement variables to explore the driving factors of this cluster

    growth. Based on the qualitative approach, this case study found that collective efficiency

    and social capital affect the development of SME cluster being studied, while policy

    inducement provides limited contribution to the growth of this cluster. The availability of

    skilled labour, raw materials and the demand of domestic market supports the local

    external economy of this location while joint action among cluster actors in the form of

    sharing order and putting-out between SMEs and retailers adds to collective efficiency.

    Furthermore, social capital as a common value bound the unity among actors in a friendly

    competition. However, the inducement policy stimulating the development of this cluster

    has limited impact since there is no deliberative action seriously carried out by the

    municipal government of Pasuruan. The study recommends more deliberative program is

    designed to meet the needs of cluster actors to cope their obstacles.

UOW Authors


  •   Mawardi, Mukhammad (external author)
  •   Choi, Ty T. (external author)
  •   Perera, Nelson

Publication Date


  • 2011

Citation


  • Mawardi, M. Kholid., Choi, T. & Perera, N. (2011). The factors of SME cluster developments in a developing country: the case of Indonesian clusters. 2011 ICSB World Conference (pp. 408-408). Stockholm, Sweden: ICSB.

Ro Full-text Url


  • http://ro.uow.edu.au/cgi/viewcontent.cgi?article=1047&context=gsbpapers

Ro Metadata Url


  • http://ro.uow.edu.au/gsbpapers/45

Start Page


  • 408

End Page


  • 408

Place Of Publication


  • http://www.icsb2011.org/download/18.32cde39b130b691d34080005127/seminarier_tryck.pdf

Abstract


  • Since cluster development factors become a critical issue in the debate of the industrial

    cluster literature, several scholars have attempted to seek the variables that influence the

    cluster growth. This paper presents the case of the wood furniture cluster of Bukir-

    Indonesia to explain the development of SME clusters by identifying its influential factors.

    We utilize the model proposed by Parrilli (2009) that includes collective efficiency, social

    capital, and policy inducement variables to explore the driving factors of this cluster

    growth. Based on the qualitative approach, this case study found that collective efficiency

    and social capital affect the development of SME cluster being studied, while policy

    inducement provides limited contribution to the growth of this cluster. The availability of

    skilled labour, raw materials and the demand of domestic market supports the local

    external economy of this location while joint action among cluster actors in the form of

    sharing order and putting-out between SMEs and retailers adds to collective efficiency.

    Furthermore, social capital as a common value bound the unity among actors in a friendly

    competition. However, the inducement policy stimulating the development of this cluster

    has limited impact since there is no deliberative action seriously carried out by the

    municipal government of Pasuruan. The study recommends more deliberative program is

    designed to meet the needs of cluster actors to cope their obstacles.

UOW Authors


  •   Mawardi, Mukhammad (external author)
  •   Choi, Ty T. (external author)
  •   Perera, Nelson

Publication Date


  • 2011

Citation


  • Mawardi, M. Kholid., Choi, T. & Perera, N. (2011). The factors of SME cluster developments in a developing country: the case of Indonesian clusters. 2011 ICSB World Conference (pp. 408-408). Stockholm, Sweden: ICSB.

Ro Full-text Url


  • http://ro.uow.edu.au/cgi/viewcontent.cgi?article=1047&context=gsbpapers

Ro Metadata Url


  • http://ro.uow.edu.au/gsbpapers/45

Start Page


  • 408

End Page


  • 408

Place Of Publication


  • http://www.icsb2011.org/download/18.32cde39b130b691d34080005127/seminarier_tryck.pdf