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- Title
The Advantages of Business Clusters.
- Authors
Raluca Cojocaru, Ana-Maria; Ionescu, Sorin
- Abstract
The aim of this article is to describe the advantages and limitations of business clusters, often interpreted as being complex economic entities. Throughout the time, it has been observed that firms tend to concentrate in certain locations as various types of economic agglomerations. However, there is no single cause which is due the clustering phenomenon, on the point of clusters may be the result of several combinations of subsequent factors: the existence of a competent workforce, specialized suppliers, knowledge dissemination and entrepreneurial activity, the inter-dependence between entities, the organizational cultures or the local demand. The objective of this paper is to demonstrate why the presence of a cluster succeeds to enhance a firm's productivity as well as stimulate growth in a region, and moreover how it manages to attain these results. While the article shows that the advantages of business clusters are obvious, even measurable, such as: the competitive advantages, the operational efficiency of its members, the encouragement of innovation and technological advance, the creation of new companies, the formation of social capital and the adaptability to market changes; the disadvantages are almost nonexistent, rather there are certain limitations and ambiguities that stand from major structural, technological or industrial changes at macroeconomic level or other impactful events such as wars and crises.
- Subjects
BUSINESS enterprises; RURAL development; ECONOMIC competition; INTERDEPENDENCE theory; SOCIAL capital
- Publication
FAIMA Business & Management Journal, 2016, Vol 4, Issue 2, p31
- ISSN
2344-4088
- Publication type
Article