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Best practices of the SME mining suppliers in the Antofagasta region of Chile

Author

Listed:
  • Miguel Atienza

    (IDEAR - ORDHUM - Department of Economics, Universidad Católica del Norte - Chile)

  • Patricio Aroca

    (IDEAR - Department of Economics, Universidad Católica del Norte - Chile)

  • Robert Stimson

    (Australian Urban Research Infraestructure Network. Faculty of Architecture, Building and Planning, University of Melbourne VIC 3010, Australia)

  • Roger Stough

    (George Mason University, School of Public Policy 4400 University Drive, MS6D5 Fairfax, Virginia 22030 USA)

Abstract

In regions whose industrial structure is organized around one or more large firm corporations, the best practices of small and medium enterprises (SMEs) depend on where firms are located in the supply chain. This paper studies 351 SMEs in the Antofagasta Region in Chile between 2007 and 2008, where multinational and public mining companies are the drivers of the local economy and the government is promoting the formation of a mining cluster. Structural equation model (SEM) is used to show that first-tier SME mining suppliers, directly related to large corporations, follow business practices that promote international certification, quality control and investment in innovation, while in contrast second-tier SMEs are more focused on avoiding insolvency and client orientation. These results cast doubt on the formation of a mining cluster in the region and suggest the need for differentiated policies in these two groups of SMEs, especially those related to knowledge transfer.

Suggested Citation

  • Miguel Atienza & Patricio Aroca & Robert Stimson & Roger Stough, 2013. "Best practices of the SME mining suppliers in the Antofagasta region of Chile," Documentos de Trabajo en Economia y Ciencia Regional 42, Universidad Catolica del Norte, Chile, Department of Economics, revised Mar 2013.
    • Handle: RePEc:cat:dtecon:dt201311
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    More about this item

    Keywords

    Spatial concentration; growth; urbanization; development;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • L72 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - Mining, Extraction, and Refining: Other Nonrenewable Resources
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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