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A Functionalist Framework for Identifying Business Clusters: Applications in Far North Queensland

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  • Adee Athiyaman

    (Western Illinois University, Macomb, IL 61455, USA.)

  • Celik Parkan

    (Long Island University. Brookville, NY 11548, USA.)

Abstract

The extant literature on industry-cluster identification recommends the use of both quantitative and qualitative data to uncover clusters. We argue for a functionalist approach to identifying clusters. The logic here is that since spatial proximity of firms is an observed fact, attempts to uncover business clusters should begin with a statistical test of the randomness of firm density in a region. Rejection of this hypothesis should lead to an inter-firm analysis that identifies the relationships among firms in the region. Data from a regional area in the state of Queensland, Australia, are employed to demonstrate the applicability of the proposed framework.

Suggested Citation

  • Adee Athiyaman & Celik Parkan, 2008. "A Functionalist Framework for Identifying Business Clusters: Applications in Far North Queensland," Australian Journal of Management, Australian School of Business, vol. 33(1), pages 201-229, June.
    • Handle: RePEc:sae:ausman:v:33:y:2008:i:1:p:201-229
    DOI: 10.1177/031289620803300110
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    References listed on IDEAS

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    1. Edward L. Glaeser & Glenn Ellison, 1999. "The Geographic Concentration of Industry: Does Natural Advantage Explain Agglomeration?," American Economic Review, American Economic Association, vol. 89(2), pages 311-316, May.
    2. Ann Markusen, 1996. "Sticky Places in Slippery Space: A Typology of Industrial Districts," Economic Geography, Taylor & Francis Journals, vol. 72(3), pages 293-313, July.
    3. Per Lundequist & Dominic Power, 2002. "Putting Porter into Practice? Practices of Regional Cluster Building: Evidence from Sweden," European Planning Studies, Taylor & Francis Journals, vol. 10(6), pages 685-704, September.
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    Cited by:

    1. Biukšāne Inese, 2016. "Model of the Factors Influencing Competitiveness of the Latvian Fisheries Sector Cluster," Economics and Business, Sciendo, vol. 28(1), pages 76-82, April.

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