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Are Small-Firm Clusters Emergent Phenomena? Evidence From Zimbabwe’S Small Furniture- Manufacturing Firms

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  • Godfrey MUPONDA

    (University of Zimbabwe, P.O. Box MP 167, Mount Pleasant, Harare)

  • Isaac CHANETA

    (University of Zimbabwe, P.O. Box MP 167, Mount Pleasant, Harare)

Abstract

The purpose of this study was to explore the reasons behind the rapid growth and apparent dynamism of Zimbabwe’s small-firm industrial clusters. The hypothesis behind the study was that these small-firm clusters are emergent phenomena. The study analysed the capital utilisation techniques of small firms located in a large industrial cluster in order to determine the factors that lead to the collective efficiency of such firms. The study found that, in comparison with large, stock exchange-listed firms, the cluster environment enables the small firm to operate from a relatively small capital base and also to use its capital more efficiently in creating revenues and profits. The individual firm does not have to invest its capital in a large assets base as this is done by a specialised group of firms within the cluster. Thus, the cluster has the characteristics of an emergent phenomenon.

Suggested Citation

  • Godfrey MUPONDA & Isaac CHANETA, 2014. "Are Small-Firm Clusters Emergent Phenomena? Evidence From Zimbabwe’S Small Furniture- Manufacturing Firms," EcoForum, "Stefan cel Mare" University of Suceava, Romania, Faculty of Economics and Public Administration - Economy, Business Administration and Tourism Department., vol. 3(2), pages 1-6, July.
    • Handle: RePEc:scm:ecofrm:v:3:y:2014:i:2:p:6
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    File URL: http://ecoforumjournal.ro/index.php/eco/article/download/69/66
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    References listed on IDEAS

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    Cited by:

    1. Liliana SCUTARU, 2015. "Innovative Cluster Or Competitiveness Pole?," EcoForum, "Stefan cel Mare" University of Suceava, Romania, Faculty of Economics and Public Administration - Economy, Business Administration and Tourism Department., vol. 4(1), pages 1-23, January.

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