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Realizing new regional core competence : establishing a customer-oriented SME-network

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  • Vanhaverbeke, W.P.M.

    (Externe publicaties SBE)

Abstract

This paper explores the possibilities of combining the recently developed ‘value constellation’ concept and the literature about industrial districts. The advantages related to the geographical concentration of economic activities are insufficient in the competition with companies that are linked to each other within a value constellation - a customer-oriented inter-organizational strategy. This new type of competition forces traditionally operating SMEs in industrial districts to team up with each other in a customer-oriented network. However, these networking strategies are unlikely to emerge because SMEs are locked into their traditional competencies and they lack the financial and strategic resources to develop interactive strategies covering the entire value system. Business associations and local institutions may play a crucial role in changing and shaping the emerging network among the SMEs. However, local institutions are equally susceptible to being locked into traditional patterns of interaction. Their willingness to break away from the past is crucial for the learning capabilities of local SMEs. The difficulties in setting up a customer-oriented network are illustrated by the ‘construction and home furnishings’ business cluster in South West Flanders (Belgium).
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  • Vanhaverbeke, W.P.M., 1999. "Realizing new regional core competence : establishing a customer-oriented SME-network," Research Memorandum 003, Maastricht University, Netherlands Institute of Business Organization and Strategy Research (NIBOR).
    • Handle: RePEc:unm:umanib:1999003
    DOI: 10.26481/umanib.1999003
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    References listed on IDEAS

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    1. Baumol, William J, 1982. "Contestable Markets: An Uprising in the Theory of Industry Structure," American Economic Review, American Economic Association, vol. 72(1), pages 1-15, March.
    2. Wagner, Alfred, 1891. "Marshall's Principles of Economics," History of Economic Thought Articles, McMaster University Archive for the History of Economic Thought, vol. 5, pages 319-338.
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    1. Marta Gancarczyk, 2010. "Model schyłku i odrodzenia klastrów," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 3, pages 1-21.
    2. Niranjan Chipalkatti & Jonathan P. Doh & Meenakshi Rishi, 2011. "Institutional quality, knowledge spillovers and entrepreneurship," International Journal of Economic Policy in Emerging Economies, Inderscience Enterprises Ltd, vol. 4(4), pages 307-329.
    3. Marta Gancarczyk & Joanna Bohatkiewicz, 2018. "Research Streams in Cluster Upgrading. A Literature Review," Journal of Entrepreneurship, Management and Innovation, Fundacja Upowszechniająca Wiedzę i Naukę "Cognitione", vol. 4(4), pages 17-42.
    4. Gancarczyk, Marta & Gancarczyk, Jacek, 2018. "Proactive international strategies of cluster SMEs," European Management Journal, Elsevier, vol. 36(1), pages 59-70.
    5. Joseph LiPuma & Scott Newbert & Jonathan Doh, 2013. "The effect of institutional quality on firm export performance in emerging economies: a contingency model of firm age and size," Small Business Economics, Springer, vol. 40(4), pages 817-841, May.
    6. S A Adebisi & Olufemi A Ogunkoya, 2014. "Dynamic Capabilities, Network Resources and Organizational Performance of Banks in the Nigerian Business Environment," Economics and Management Research Projects: An International Journal, Open Access International Journals, vol. 4(1), pages 1-9, December.
    7. Karlsson, Tomas & Honig, Benson, 2009. "Judging a business by its cover: An institutional perspective on new ventures and the business plan," Journal of Business Venturing, Elsevier, vol. 24(1), pages 27-45, January.
    8. Dominik Bertram & Tobias Chilla & Carola Wilhelm, 2021. "Short Value Chains in Food Production: The Role of Spatial Proximity for Economic and Land Use Dynamics," Land, MDPI, vol. 10(9), pages 1-21, September.
    9. Mausumi Saha & Sharmistha Banerjee, 2015. "Impact of Social Capital on Small Firm Performance in West Bengal," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 24(2), pages 91-114, September.

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