advantage of cluster and network corporation among smes prepared by: dr.k-talebi
TRANSCRIPT
![Page 1: Advantage of cluster and Network corporation among SMEs Prepared by: Dr.K-Talebi](https://reader036.vdocument.in/reader036/viewer/2022081603/56649f345503460f94c51492/html5/thumbnails/1.jpg)
Advantage of cluster and
Network corporation among SMEs
Prepared by: Dr.K-Talebi
![Page 2: Advantage of cluster and Network corporation among SMEs Prepared by: Dr.K-Talebi](https://reader036.vdocument.in/reader036/viewer/2022081603/56649f345503460f94c51492/html5/thumbnails/2.jpg)
Cluster and Competition
What is cluster?
Why cluster?
SMEs and Cluster?
Economy-Based Knowledge and cluster
![Page 3: Advantage of cluster and Network corporation among SMEs Prepared by: Dr.K-Talebi](https://reader036.vdocument.in/reader036/viewer/2022081603/56649f345503460f94c51492/html5/thumbnails/3.jpg)
What is cluster
Definition of cluster:
A Sectoral and geographical concentration of SMEs faced
with common opportunities &
Threats.
![Page 4: Advantage of cluster and Network corporation among SMEs Prepared by: Dr.K-Talebi](https://reader036.vdocument.in/reader036/viewer/2022081603/56649f345503460f94c51492/html5/thumbnails/4.jpg)
Cont.
What is Cluster
A cluster is a geographically proximate group of interconnected
companies & associated institution
in a particular field linked by commonalities & complementarities.
Prof: M.Porter
![Page 5: Advantage of cluster and Network corporation among SMEs Prepared by: Dr.K-Talebi](https://reader036.vdocument.in/reader036/viewer/2022081603/56649f345503460f94c51492/html5/thumbnails/5.jpg)
Definition of Horizontal Network
A form of cooperation among independent firms of the same scale that produce the same/similar type of products & that decide
to group together for product marketing joint purchase of raw materials, joint manufacturing of finished products
![Page 6: Advantage of cluster and Network corporation among SMEs Prepared by: Dr.K-Talebi](https://reader036.vdocument.in/reader036/viewer/2022081603/56649f345503460f94c51492/html5/thumbnails/6.jpg)
Definition of vertical Network
A form of cooperation between firms that occupy adjacent links in the productive
chain and that aim at achieving competitive
advantages outside their individual reach
![Page 7: Advantage of cluster and Network corporation among SMEs Prepared by: Dr.K-Talebi](https://reader036.vdocument.in/reader036/viewer/2022081603/56649f345503460f94c51492/html5/thumbnails/7.jpg)
The Shifting Economic Policy Agenda
Macro Micro
Current productivity Innovation
Economy wide Cluster
National Cross-national
Regional / local
Economic Economic integrated
with social
![Page 8: Advantage of cluster and Network corporation among SMEs Prepared by: Dr.K-Talebi](https://reader036.vdocument.in/reader036/viewer/2022081603/56649f345503460f94c51492/html5/thumbnails/8.jpg)
Dr.Talebi 8
Comparative
Advantage
Competitive
Advantage
Wealth is set by
endowment
Wealth is created by national or regional
choice/s
![Page 9: Advantage of cluster and Network corporation among SMEs Prepared by: Dr.K-Talebi](https://reader036.vdocument.in/reader036/viewer/2022081603/56649f345503460f94c51492/html5/thumbnails/9.jpg)
Dr.Talebi 9
Clusters Fuel for Strong Economies
Clusters improve competitiveness through cooperative competitions & proximity
Clusters give local producers specialization & first mover advantages
![Page 10: Advantage of cluster and Network corporation among SMEs Prepared by: Dr.K-Talebi](https://reader036.vdocument.in/reader036/viewer/2022081603/56649f345503460f94c51492/html5/thumbnails/10.jpg)
Dr.Talebi 10
Michael Porter’s “Diamond of Advantage”
Firm Strategy structure ,
and Rivalry
Related & SupportedIndustries
FactorCondition
DemandConditions
Government
Chance
![Page 11: Advantage of cluster and Network corporation among SMEs Prepared by: Dr.K-Talebi](https://reader036.vdocument.in/reader036/viewer/2022081603/56649f345503460f94c51492/html5/thumbnails/11.jpg)
Cluster have life cycles
Rule of Thumb 4: Stages of Development of a cluster shape its needs and interests
- Embryonic
- Growth
- Mature
- Decaying
![Page 12: Advantage of cluster and Network corporation among SMEs Prepared by: Dr.K-Talebi](https://reader036.vdocument.in/reader036/viewer/2022081603/56649f345503460f94c51492/html5/thumbnails/12.jpg)
Dr.Talebi 12
Identifying industry Clusters
Statewide
Regional
Labor needs
Potential
TimeGeography
Three
Dimensions
Existing
Emerging
Value chainLinkage
![Page 13: Advantage of cluster and Network corporation among SMEs Prepared by: Dr.K-Talebi](https://reader036.vdocument.in/reader036/viewer/2022081603/56649f345503460f94c51492/html5/thumbnails/13.jpg)
Dr.Talebi 13
How can state governmentsbuild industrial clusters?
![Page 14: Advantage of cluster and Network corporation among SMEs Prepared by: Dr.K-Talebi](https://reader036.vdocument.in/reader036/viewer/2022081603/56649f345503460f94c51492/html5/thumbnails/14.jpg)
Dr.Talebi 14
Identify existing, emerging andpotential export-oriented ortrading industry clusters.
![Page 15: Advantage of cluster and Network corporation among SMEs Prepared by: Dr.K-Talebi](https://reader036.vdocument.in/reader036/viewer/2022081603/56649f345503460f94c51492/html5/thumbnails/15.jpg)
Dr.Talebi 15
Obstacles to the Formation of Vertical Network
Mutual mistrust and misinformationClient-Supplier dependent relationsLake of homogeneity between client and
supplier firms
![Page 16: Advantage of cluster and Network corporation among SMEs Prepared by: Dr.K-Talebi](https://reader036.vdocument.in/reader036/viewer/2022081603/56649f345503460f94c51492/html5/thumbnails/16.jpg)
Dr.Talebi 16
Success Factors* concepts
- Innovation
- Imitation and competition
- Entrepreneurship
* Connections
- Networks and networking
- Connections and Intermediaries
* Competencies
- Specialized labor force
- Industry leaders
- Talent
- Knowledge
![Page 17: Advantage of cluster and Network corporation among SMEs Prepared by: Dr.K-Talebi](https://reader036.vdocument.in/reader036/viewer/2022081603/56649f345503460f94c51492/html5/thumbnails/17.jpg)
Dr.Talebi 17
Successful Cluster Initiatives(Porter)
A shared understanding of competitiveness and the role of clusters in competitive advantage
A Focus on removing obstacles and easing constraints to cluster upgrading
A structure that embraces all clusters in a nation or state
Appropriate cluster boundaries
![Page 18: Advantage of cluster and Network corporation among SMEs Prepared by: Dr.K-Talebi](https://reader036.vdocument.in/reader036/viewer/2022081603/56649f345503460f94c51492/html5/thumbnails/18.jpg)
Dr.Talebi 18
Successful Cluster Initiatives (cont.)
Wide participation of cluster participants and associated institution
Private sector leadership Close attention to personal relationships A bias toward actionInstitutionalization
![Page 19: Advantage of cluster and Network corporation among SMEs Prepared by: Dr.K-Talebi](https://reader036.vdocument.in/reader036/viewer/2022081603/56649f345503460f94c51492/html5/thumbnails/19.jpg)
Dr.Talebi 19
Reasons for Success
Firm-level competitiveness Low costs of coordination within small
units Greater flexibility and adaptability to
constantly changing marketsSelf-entrepreneurship
![Page 20: Advantage of cluster and Network corporation among SMEs Prepared by: Dr.K-Talebi](https://reader036.vdocument.in/reader036/viewer/2022081603/56649f345503460f94c51492/html5/thumbnails/20.jpg)
Dr.Talebi 20
Reasons for Success
Cluster-level competitiveness Inter-firm cooperation Competition Local Governance
![Page 21: Advantage of cluster and Network corporation among SMEs Prepared by: Dr.K-Talebi](https://reader036.vdocument.in/reader036/viewer/2022081603/56649f345503460f94c51492/html5/thumbnails/21.jpg)
Dr.Talebi 21
Improvements in productivity depend on healthy competition,productivity and productivity growth are the connection between competition and standard of living