International Business

Clusters and Competitive Advantage: The Turkish Experience by Ozlem Oz

By Ozlem Oz

This publication goals to elucidate the hyperlink among geographic clustering and foreign competitiveness in gentle of the Turkish event, an issue that's excessive at the agendas of researchers in addition to coverage makers and strategic planners. the foremost findings of the research are mentioned with admire to the new debates on clusters to supply a whole account of what the Turkish event, while checked out from the point of view of the strategic administration self-discipline, bargains to additional highbrow considering on clusters.

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Extra info for Clusters and Competitive Advantage: The Turkish Experience

Example text

This model was inspired by Porter’s (1990) story of the Montebelluna (Italy) ski boot industry, in which externalities, economic growth, and historical and spatial considerations were all present. The most significant contribution of these two studies has been to put some of Porter’s key ideas into a mathematical model. In another study, Shilton and Stanley (1999) trace the survival and growth of the headquarters of publicly listed firms in the United States. Their finding supports Porter’s thesis that firms cluster for competitive advantage.

Similarly Smith (1993, p. ’ Holt (1998) especially celebrates Porter’s emphasis on local rivalry and considers that his analysis of how competitive pressure in clusters drive innovation and prosperity is ‘one of the glories of his approach’. According to Gray (1991) and Dunning (1992), Porter’s extensive and rich field research has advanced our knowledge of why corporations in some locations have successfully penetrated foreign markets in some product areas but not others, and of why some countries have been able to attract foreign-owned firms to participate in some value-added activities but not others.

According to this approach, globalization has triggered a shift in the sources of competitive advantage towards innovation and thus knowledge-based economic activity. In turn, knowledge-intensive economic activities have a high propensity to cluster within a geographic region since knowledge is generated and transmitted more efficiently in a local system (Audretsch, 1998). According to Storper (1999), this approach is paralysed by the circularity involved in its analysis: innovation occurs because of a milieu, and a milieu exists in regions where there is innovation.

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