Competitive advantages and clustering of SMEs: An analysis of clustering effect on competition in small-scale enterprises in Istanbul

Abstract

According to Michael Porter’s Diamond Model, a business cluster is defined as geographic concentration of inter-connected companies and institutions working in a common industry. In addition, clusters encompass an array of collaborating and competing services and providers that create a specialized infrastructure, which supports the cluster’s industry. The economic cluster model, represents a synergy, a dynamic relationship and a network between not only the companies that comprise a cluster but also the successful partnering of the stakeholders. Today in all over the world, successful clusters have established a greater competitive advantage and wealth creation for their regions when compared to companies not in a cluster. Given this success more policy makers and regions are considering fostering cluster development as building blocks of regional economies. Research is planned and performed for understanding the clustering in SMEs (small and medium enterprises) industrial estate in Istanbul if it gives a competitive advantage to the cluster members or not. It is performed to determine and satisfy the lack of knowledge about the small and medium enterprises’ issues, technologic systems, production quality standards, capacity usage ratios, interactions with other firms, habits of following the technologic improvements and clustering effects on the members.