Successes and Challenges in Industrial Clusters: Some Empirical Evidence from Wood Industrial Cluster in Kumasi, Ghana
Journal of Investment and Management
Volume 7, Issue 1, February 2018, Pages: 1-12
Received: Oct. 22, 2017; Accepted: Nov. 21, 2017; Published: Mar. 5, 2018
Views 1045      Downloads 89
Authors
Martin Amoah, Faculty of Technical Education, University of Education Winneba, Kumasi, Ghana
Gbapenuo Enoch, Department of Construction and Wood Technology, University of Education Winneba, Kumasi, Ghana
Peter Kessels Dadzie, Interior Design and Materials Technology Department, Kumasi Technical University, Kumasi, Ghana
Joseph Asomani, Department of Construction and Wood Technology, University of Education, Winneba, Ghana
Article Tools
Follow on us
Abstract
This study examined some successes and challenges of a wood cluster in Kumasi, Ghana. A concurrent mixed method comprising survey, regression analysis, and correlation analysis were adopted to probe into how the effects of interconnections among firms in the cluster, the successes chalked and the challenges firms face in the cluster. Results showed significant (p < 0.001) interconnections among actors contributed to significant increase in productivity, sales and profit margins of the firms. Majority (93.4%) of respondents affirmed appreciable increases in sales and profit margins demonstrating that the cluster has been a major driver of economic growth. Permanent site for the artisans and other actors was the major benefit, provided by the cluster. However, lack of access to bank loans, timber, and waste management facility, promoting and marketing of products are some challenges associated with the cluster. Interventions from government and other agencies are required to create the enabling environment to attract investors that can help in addressing the challenges so as to stimulate growth of the wood and furniture enterprises in the cluster as they have greater potential for Ghana’s economic development.
Keywords
Industrial Clusters, Wood Artisans, Sokoban Wood Village, SMEs in Ghana
To cite this article
Martin Amoah, Gbapenuo Enoch, Peter Kessels Dadzie, Joseph Asomani, Successes and Challenges in Industrial Clusters: Some Empirical Evidence from Wood Industrial Cluster in Kumasi, Ghana, Journal of Investment and Management. Vol. 7, No. 1, 2018, pp. 1-12. doi: 10.11648/j.jim.20180701.11
Copyright
Copyright © 2018 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
References
[1]
Poter M (1998). Definition of cluster industries, In: Kures M (2011). Industry clusters as an Economic Deelopment Strategy, paper presented at an information and opinion-packed meeting at Alliant Energy Centre, 27th Sept. pp. 14.
[2]
Kures M (2011). Industry clusters as an Economic Deelopment Strategy, paper presented at an information and opinion-packed meeting at Alliant Energy Centre, 27th Sept. pp. 14.
[3]
Cooke, P., and Lazzeretti, L. (2008). Creative cities, cultural clusters and local economic development, Edward Elgar, Cheltenham, UK.
[4]
Sonobe, T., and Otsuka K. (2006). Cluster-Based Industrial Development: An East Asian Model. Basingstoke: Palgrave Macmillan.
[5]
Albaladejo, M. (2002). Promoting SMEs in Africa: key areas for policy intervention. United Nations Development Organization, Vienna.
[6]
Scott, A. J. (1988). New Industrial Spaces: Flexible Production Organisation and Regional Development in North America and Western Europe. London: Pion.
[7]
Moulaert, F., and Sekia, F. (2003). Territorial innovation models: A critical survey, Regional Studies, 37, 289-302.
[8]
Karlsson, C. (2008). Handbook of research on cluster theory. UK, Cheltenham: Edward Elgar Publishing.
[9]
Helmsing, A. H. J. B. (2001). Externalities, learning and governance: New perspectives on local economic development. Development and Change, 32, 277-308.
[10]
UNCTAD (2002). Partnerships and Networking in Science and Technology for Development. United Nations Conference on Trade and Development, Technology for Development Series, Geneva.
[11]
Piore, M. J., and Sabel, C. F. (1984). The second industrial divide: Possibilities for prosperity, New York: Basic Books Inc.
[12]
Schmitz, H., and Musyck, B. (1994). Industrial districts in Europe : Policy lessons for developing countries?. World Development, 22(6), 889-910.
[13]
Pseiridis, A. (2001). Clusters as an industrial strategy. University of Cambridge, UK.
[14]
Dalsgaard, M. H. (2001). Danish cluster policy: Improving specific framework conditions, 347-60. Paris: OECD.
[15]
Cowling, K., and Sugden, R. (1999). The wealth of localities, regions and nations: Developing multinational economies. New Political Economy, 4(3), 361-378.
[16]
Bortagaray, I., and Tiffin, S. (2000). Innovation clusters in Latin America. 4th International Conference on Technology Policy and Innovation, Curitiba, Brazil August, pp28-3.
[17]
Maskell, P., and Lorenzen, M. (2004). The cluster as market organization. Urban Studies, 41(5/6), 991-1009.
[18]
Lukacs, E. (2005). The economic role of SMEs in world economy especially in Europe. Journal of European Integration Studies, 4, 1.
[19]
Deitz and Garcia (2000). Industry Cluster in New York State; In Walter et al. (2000). Understanding Regional Economic Growth in the New Economy: Industry Clusters, The Regional Economy. Buffalo Branch, Federal Reserve Bank of New York. pp.4.
[20]
Capechi, V. (1989). The informal economy and the development of flexible specialization in Romagna. In Portes, A. and Custells, M. (Ed.). The formal economy, studies in Advance and less Development countries. London: John Hopkins University Press.
[21]
Larson, A. (1991). Partner networks: Leveraging external ties to improve entrepreneurial performance. Journal of Business Venturing, 6(3), 173-88.
[22]
Aryeetey, E. (2008). A Lecture Presented on the “Need for a Small and Medium Enterprise Charter in Ghana” at the Third 50th Anniversary Lecture of the Association of Ghana Industries, June 2008 Edition.
[23]
Schmitz, H. (1995). Collective Efficiency: Growth path for Small-Scale Industry. Journal of Development Studies 31(4), 529-66.
[24]
Pittaway. L., Robertson M., Munir K., Denyer D., and Neely A. (2004). Networking and innovation: A systematic review of the evidence. International Journal of Management Reviews, 6, 137-68.
[25]
Morris, S., Basant, R., Das, K., Ramachandarn, R., and Koshy, A. (2001). The Growth and Transformation of Small Firms in India, Oxford University Press, New Delhi.
[26]
Attuquayefio, D. K and Abdulai A. (2013). Environmental and social management plan (ESMP), construction of access roads with kerbs and drains at Sokoban Wood Village, Kumasi (Draft Report), Kumasi Metropolitan Assembly (KMA). http://www.igcsp.mlgrdghanagov.com/pdf/SOKOBAN%20WOOD%20VILLAGE_ESMP_DRAFT%20REPORT.pdf (Retrieved, 22/06/15)
[27]
Robson, C. (2011). Real world research: A resource for users of social research methods in applied settings, 3rd ed. John Wiley and Sons Ltd. U. K. 586pp.
[28]
Cohen, L., Manion L., and Morrison, K. (2011). Research methods in education, 7th ed., Routledge-Taylor and Francis group, London and New York. 758pp.
[29]
Burgess, R. (1982). Field research: A Sourcebook and field manual. London, Routledge.
[30]
Clandinin, D. J., and Connelly, F. M. (1994). Personal experience methods: California, SAGE Publications.
[31]
Eriksson, P., and Kovalainen, A. (2008). Qualitative methods in business research. London: SAGE Publications.
[32]
Gioia D. A., and Chittipeddi, K. (1991). Sense making and sense giving in strategic change initiation. Strategic Management Journal, 12(6), 433-448.
[33]
Porter M (2000). Location, Competition, and Economic Development: Local Clusters in a Global Economy, Economic Development Quarterly, 14 (1); 15-34.
[34]
Felzensztein C and Gimmon E (2008). Industrial clusters and social networking for enhancing interfirm cooperation: The case of natural resources-based industries in Chile, Journal of Business and Market, 2 (4), 187-201.
[35]
Walter, B., Melson, R., Deitz, R., Garcia, R. (2000). Understanding Regional Economic Growth in the New Economy: Industry Clusters, The Regional Economy. Buffalo Branch, Federal Reserve Bank of New York. pp.4.
[36]
Spender, J. C. (1998). “The Geographies of Strategic Competencies; Borrowing from Social and Educational Psychology to Sketch an Activity and a Knowledge_Based Theory of the Firm” In Chandler, A. D, Hagstrom, P., and Solvell, O. eds., The Dynamic Firm. Oxford: Oxford University Press.
[37]
Nonaka, I., and Takeuchi, H. (1995). Knowledge-Creating Company. Oxford: Oxford University Press.
[38]
Bathelt, H. (2005b). Geographies of production: Growth regimes in spatial perspective to knowledge creation and growth in clusters. Progress in Human Geography, 29, 204-216.
[39]
Richardson, G. B. (2003). The organization of industry re-visited. Paper presented to the DRUID Summer Conference on “Creating, sharing and transferring knowledge. The role of Institutions and Organisation”. Copenhagen, June 12-14, 2003.
[40]
Wu, A. (2004). Analyses on China Industry and Inverse Flow of Labor, China Industrial Economy (ZhongguoGongyeJingji), 2004 (12).
[41]
Camagni, R. P. (1995). The concept of innovative milieu and its relevance for public polices in European lagging regions. Papers in Regional Science, 74, 317-340.
[42]
Feldman, M. P. (1999). The new Economics of innovation, spillovers and agglomeration: A review of empirical studies. Economics of Innovation and New Technology, 8, 5-25.
[43]
Best, M. H. (1990). The New Competition: Institutions for industrial restructuring. Polity Press, Cambridge and Oxford.
[44]
Bair, J., and Gereffi, G. (2003). Upgrading uneven development and jobs in the North American apparel industry. Global Networks, 3(2), 147-169.
[45]
Walter, B., Melson, R., Deitz, R., Garcia, R. (2000). Understanding Regional Economic Growth in the New Economy: Industry Clusters, The Regional Economy. Buffalo Branch, Federal Reserve Bank of New York. pp.4.
[46]
Townson, I. M. (1995). Incomes from non-timber forest products: Patterns of enterprise activity in the forest zone of southern Ghana. The main Report, Oxford University, UK.
ADDRESS
Science Publishing Group
1 Rockefeller Plaza,
10th and 11th Floors,
New York, NY 10020
U.S.A.
Tel: (001)347-983-5186