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Prospects for Cooperative Marketing among Surgical Instrument Producers in Pakistan

Author

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  • Theresa Thompson Chaudhry

    (Lahore School of Economics, Pakistan.)

Abstract

Given that clustered firms in developing countries generally sell their goods through multinational firms, we seek to determine under what conditions might clustered surgical instrument firms band together and form a cooperative to “break out” of their relationship with multinational buyers to market their own goods. Our results, based on a survey of surgical instrument producers in Sialkot, Pakistan, demonstrate that firms are more likely to be interested in such initiatives once they have already had some direct experience in marketing, such as selling products under their own brand name and having already sold some goods directly to hospitals. Firms that have had relationships of longer duration with customers tend to be less likely to be interested in joint action initiatives. This indicates that a higher opportunity cost of engaging in joint action (as proxied by relationships of longer duration) reduces the likelihood of cooperative marketing initiatives in clusters.

Suggested Citation

  • Theresa Thompson Chaudhry, 2011. "Prospects for Cooperative Marketing among Surgical Instrument Producers in Pakistan," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 16(1), pages 1-22, Jan-Jun.
  • Handle: RePEc:lje:journl:v:16:y:2011:i:1:p:1-22
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    References listed on IDEAS

    as
    1. Theresa Thompson Chaudhry, 2011. "Contracting and Efficiency in the Surgical Goods Cluster of Sialkot, Pakistan," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 12(1), pages 91-115, March.
    2. Tewari, Meenu, 1999. "Successful Adjustment in Indian Industry: the Case of Ludhiana's Woolen Knitwear Cluster," World Development, Elsevier, vol. 27(9), pages 1651-1671, September.
    3. Schmitz, Hubert & Nadvi, Khalid, 1999. "Clustering and Industrialization: Introduction," World Development, Elsevier, vol. 27(9), pages 1503-1514, September.
    4. Knorringa, Peter, 1999. "Agra: An Old Cluster Facing the New Competition," World Development, Elsevier, vol. 27(9), pages 1587-1604, September.
    5. Bair, Jennifer & Gereffi, Gary, 2001. "Local Clusters in Global Chains: The Causes and Consequences of Export Dynamism in Torreon's Blue Jeans Industry," World Development, Elsevier, vol. 29(11), pages 1885-1903, November.
    6. Nadvi, Khalid, 1999. "Collective Efficiency and Collective Failure: The Response of the Sialkot Surgical Instrument Cluster to Global Quality Pressures," World Development, Elsevier, vol. 27(9), pages 1605-1626, September.
    7. repec:idb:brikps:publication-detail,7101.html?id=23594 is not listed on IDEAS
    8. Khalid Nadvi, 1999. "Shifting Ties: Social Networks in the Surgical Instrument Cluster of Sialkot, Pakistan," Development and Change, International Institute of Social Studies, vol. 30(1), pages 141-175, January.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Surgical instruments; goods; cooperative; market; Pakistan.;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing
    • J54 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Producer Cooperatives; Labor Managed Firms

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