Cluster-Based Industrial Development: Kaizen Management for by T. Sonobe, K. Otsuka

By T. Sonobe, K. Otsuka

This ebook examines how you can advertise business improvement in low-income international locations. It considers the position of investors within the evolution of a cluster, the function of managerial human capital, the influence of the 'China shock', and the function of commercial rules occupied with overseas wisdom move in assisting the upgrading of clusters.

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4, we attempt to learn lessons for formulating effective industrial development policy from several successful development experiences of industrial clusters in Asia. 2 Three types of industrial clusters Schmitz and Nadvi (1999), Sonobe and Otsuka (2006), Huang and Bocchi (2008), and Long and Zhang (2011, 2012), as well as many other studies, report that there are a large number of industrial clusters in East Asia, South Asia, and Latin America. Clusters in SSA are reported by McCormick (1999), Oyelaran-Oyeyinka and McCormick (2007), and Sonobe and Otsuka (2011).

An increasing number of enterprises applied for a certificate of national standard or international standard—granted by the central government body to an individual product if it satisfies the appropriate quality standard—because it helped to convince consumers of the high quality of the product. As a brand name is established, mass selling becomes easier, and a greater number of consumers experience the high quality of the product, which in turn improves the brand image. The formation of an enterprise group through mergers was a way to take advantage of such scale economies.

Yet, increasingly the emphasis has been shifting from technology to management. For example, in their often-cited paper, Bruhn et al. (2010) argue that the capital missing in developing countries is managerial capital, whereas they mention technological progress and innovation only once in the paper. A balanced view on managerial and technological capabilities is missing in this literature. This chapter attempts to narrow this gap in the literature. It begins by clarifying the meanings of managerial and technological capabilities by developing a simple model.

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