Internationalisation of business clusters: the case of fruit processing clusters in Ghana

Since Alfred Marshall propounded industrial clusters, the study of spatial organisation over the years has revealed numerous benefits of agglomeration to businesses, countries and regions. Until recently, discussions on the gains associated with internationalising clusters have mainly been situated within the developed economy setting. The key drivers of exporting clusters have mostly been related to cases within more functioning institutional environments. However, factors responsible for driving exporting activities in clusters within developing economies’ setting are a current phenomenon in academic enquiry that has received minimal attention. Thus, the study aims to fill the knowledge gap by investigating the emergence of and dynamism within clusters, thereby understanding the key drivers of exporting fruit processing cluster activities in developing economies like Ghana. The study focuses on spatial and internationalisation theories to draw out key concepts on networking and knowledge. The research adopts a mixed methods approach, using 99 surveys and 24 interviews, to empirically study actors in two fruit processing and exporting clusters. The findings show that, comparatively, palm processing businesses have a more socially embedded network structure that drives exporting activities in the cluster as opposed to the more formal business-like relationship in the pineapple cluster. As a result, parallel social institutions have emerged among the palm processing businesses which are enhancing their exporting capabilities. The findings also reveal how pineapple processors, due to their more outward-looking nature, have been able to externally acquire and transmit ‘tacit’ knowledge on MD2 pineapples through an entrepreneur ‘gatekeeper’. Further evidence shows that processing businesses in the pineapple cluster are mostly set up to internationalise from the onset due to the presence of external investors and the exposure of entrepreneurs to international markets. The results provide a compelling case of born global businesses within a developing economy setting. The research contributes to extant theoretical development and understanding of the key drivers of exports within clustered businesses. Particularly, it emphasises the role spatial organisation plays in exporting clusters within the developing economy setting

Competitive or cooperative relationships in clusters: a comparative study of two internationalising agro-processing clusters in Ghana

An efficient policy supporting clustered business operations necessitates an appreciation of the dynamics of rivalry and collaborations among businesses. This paper postulates that variation in competition and cooperation can significantly influence the nature of business relationships among clustered businesses, which is essential for cluster policy particularly (Newland, 2003) as most research on rivalry and cooperation in clusters have been in developed economies. This paper seeks to fill this gap in the literature in African clusters based on original empirical research. The study adopts a mixed method research design allowing for data triangulation to study two food processing clusters. The approach comprises a survey and in-depth interview with key actors along the supply chain. The findings show that business clusters with more formal business structures tend to have minimal horizontal competition but higher vertical cooperation. Comparatively, clusters with more socially embedded milieu tend to have higher levels of cooperation and minimal competition in both vertical and horizontal relationships. The research also shows that such variations in inter-business relationships have an effect on cluster operations in terms of business access to finance, formal contract, sharing of innovation and the way they relate to different stakeholders in their supply chain. This paper advances a critical case for international business theory on clusters in Africa to incorporate the distinctive business relationships in SME clusters. It also demonstrates how unique location-specific attributes of developing economies hold the key to sustaining the operations of SME-based clusters