writing a cluster diagnostic study originators: foundation for msme clusters (fmc), unido
TRANSCRIPT
Reducing poverty through sustainable industrial growth
Why Do We Need a Diagnostic?
Current status of linkages and support services
What are the key challenges (strategic issues) that each value chain partners face?
Which of these strategic issues can be solved through different routes such as:
investment promotion
Schematic assistance,
Linkages with markets
BDS development/linkages,
institutional strengthening
public private partnership
Reducing poverty through sustainable industrial growth
Objectives
Understand uniqueness of the cluster with respect to:
Firm typicality
Presence & relationship with stakeholders
Joint activities and pressure point(s)
Identify initial entry points into a cluster
Build trust with stakeholders
Spot leaders, implementers, participants
Create a base for future monitoring and evaluation
Reducing poverty through sustainable industrial growth
What Does it Take?
Who does it?
How long does it take?
What are the sources of information?
Secondary
Primary
Does the primary source of information need to be random based?
Who (people/institutions) should be interviewed?
How to validate the findings of the study?
Emerging new models/ thinking?
Reducing poverty through sustainable industrial growth
Steps in Diagnostic
1. Define the Cluster – Product & Place
2. Gather Preliminary Data on number of principal firms, their turnover, number of support firms, BDS providers, other relevant agencies, etc. through
past knowledge of the IA
local area surveys and censuses, district plan,
local bank reports, internet search, etc.
3. Preparation of Questionnaire
4. Selection of Samples
Representatives of all stakeholders are interviewed
Principal stakeholders
Forward linkage providers
Supplier, support institutions,
Associations and/or networks
Policy makers
Reducing poverty through sustainable industrial growth
Steps in Diagnostic
5. Sample Size
Around 8 to 10 interviews of principal firms (for each value chain)
Also in addition 2 to 3 of each type of critical support firms
Relevant technical institutions
Bank, other financial institutions
Relevant MFI
Associations should be interviewed
6. Setting up of interviews
Start off with broad discussions with associations
In absence: Government Organizations (GOs), which have considerable influence or active NGOs
Reducing poverty through sustainable industrial growth
Steps in Diagnostic
5. Guidelines on behavioural aspects
The diagnostic study is not an academic survey understand from an interviewee the set of issues face in the cluster.
Topics should not necessarily be introduced in the order of the questionnaire format, but rather as determined by the flow of discussion
Explaining the purpose of the Project eases the interviewee and enhances chances of a fruitful interview
The interview should not last more than 90 minutes
The interview should not last more than 90 minutes
concentrate on the interview rather than on making notes
Reducing poverty through sustainable industrial growth
Survey Analysis
Enterprise Issues Identify the current strategies of various types of principal firms,
Understand how they manage their central business functions (production, marketing, finance, etc.)
Assess Strengths and weaknesses
List out suggestions that have been given both from the demand as well as the supply side in addressing the issues
Inter firm Organization List how far and in what ways the various current and suggested future linkages
promote or can promote:
Joint learning/ exploration/business promotion about markets, products, processes, etc.
Assessment of Governance Structures Identifying whether any suitable institutional structure(s) exist on which
governance capacity, in terms of capacity to react to challenges/opportunities faced by the cluster (Stakeholder associations/consortiums, technical/financial institutions, local NGOs)
Reducing poverty through sustainable industrial growth
Interviewees to Obtain Information
Support firms (forward & backward)
Service providers
Development agencies
Technical training institutes/universities
Industry/trade associations
Networks
Relevant policy bodies
Reducing poverty through sustainable industrial growth
Interviewing Techniques
Sampling/complete enumeration – technique and sample size
5 stages of interview: comforting, trust building, discussion on area of interest, derive joint action, take reference for joint action/interview
Start with association and knowledgeable person
Interview duration: 90 minutes
Recording of information later
Preferably a two-person unbiased team – CDA is a must
Mix types of stakeholders for interviews
Reducing poverty through sustainable industrial growth
Issues for Other Stakeholders
Interview with respect to interactions with principal firms
Focus on areas of direct relevance to principal firms
Interview only those that have high (existing or likely) inter-connectivity with principal firms
At times complete enumeration is required
Done both for AOBO and cluster structure
Reducing poverty through sustainable industrial growth
Content of a Diagnostic Study
Defining the cluster, product and location
National/international industry/cluster scenarios
History of the cluster and its turning points
Present status of the cluster
Analysis of business operations (AOBO) of principal stakeholders
Intra and inter stakeholder dynamics
SWOT
Cluster map
Vision, target and implementable Strategy
Tentative action plan
Reducing poverty through sustainable industrial growth
Characteristics of a Diagnostic Study
Not just an information gathering tool. Part of the process
It is an ongoing process
Those involved and not temporary outsiders for study – long term stakes
Validators are the cluster stakeholders themselves
Focus is on strategic action, not just finding problems
Focus not on individual firms, but groups of firms, institutions, other actors and their inter-relationships
From firm to cluster
Focus is to study the dynamic process: what works