Question

Effect of the industrial cluster on firm performance

Answer 1

Industrial cluster policy adversely impacts the productivity , profitability, growth and innovation performance of small and micro leather shoe manufacturing enterprises that moved to the government created clusters.Relocated cluster policy hampers the treated firms collaborative business and knowledge network and aggravates their growth impediment which includes lack of trust ,high customer and suppliers search and reach cost ,lack of market information, imperfect contact enforcement ,delay in supply of raw material and the lack of skilled labour.