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The Possibilities of Cooperation among Family Firms within a Cluster Environment

Jolanta Staszewska, Malgorzata Smolarek, Joachim Foltys, Daria Wotzka and Pawel Fracz

European Research Studies Journal, 2024, vol. XXVII, issue 2, 132-154

Abstract: Purpose: The aim of the article is to analyze the potential for effective implementation of clusters in the context of family businesses operating in the Polish market. Design/Methodology/Approach: The article seeks to address the question of whether and what are the possibilities of implementing clusters in the operations of Polish family firms. It investigates the factors contributing to the success or failure of cluster initiatives among family businesses. The hypothesis posited is that family firms in the Polish market operate in isolation, and exhibit limited willingness to collaborate, yet despite these constraints, they are capable of engaging in clusters as a solution to some of their market challenges. The research methodology comprised Computer-Assisted Telephone Interviews (CATI) and In-Depth Interviews (IDI) conducted in 2023 on a representative sample of 448 family firms. Findings: The article presents the results of research on family firms in Poland, focusing on their market situation, analysis of constraints, and opportunities for utilizing networks in the development of these enterprises. According to the research findings, the majority of family firms are not familiar with the cluster concept, but some have experience in operating within networks. Family firms demonstrate a weak willingness to collaborate with other entities, as they highly value their autonomy and independence. They are generally not interested in influencing regional strategy, workforce transfer, or collaboration with academic and research centers. Factors essential to the essence of clusters are rejected by these firms. Family firms attribute the failures of clusters to a lack of conviction in the cluster concept itself, top-down cluster stimulation, clusters emerging as a response to trends, lack of appropriate personnel, and a lack of communal action habits typical for clusters. Family firms recognize that access to markets, innovative technologies, and entrepreneurialism are the primary drivers of cluster success. However, the research results indicate that increased awareness of clustering stimulates actions that contribute to cluster success. Therefore, despite the family firms' distant approach to clusters, it is acknowledged that these firms need to be made aware of the necessity of forming clusters as a way out of isolation and focusing on their own activities. To this end, a cluster-building procedure tailored to family firms has been developed, as engaging in cluster collaboration can be an opportunity for the development of these firms. This has the potential for success because the pursuit of cost reduction is one of the main benefits of participating in a cluster, and family firms are interested in this aspect. Practical Implications: Current market trends, along with prevailing quality requirements, increase the significance of clusters in shaping growth and development processes based on a set of criteria grounded in sustainability attributes. Consequently, the analysis of cluster utilization not only becomes a topical research issue but also a practical tool supporting the enduring and sustainable development of these firms. Originality/Value: While numerous studies have focused on family firms and their management, relatively few of these studies have addressed the potential application of clusters by family firms. The research undertaken has yielded insights into the clustering of family firms, identifying causes of failures as well as the benefits of collaboration, which may serve as a valuable source of information, utilized, among other contexts, in the decision-making process regarding engagement in long-term agreements. In this regard, the present article seeks to fill a gap in the realm of cluster formation by family firms.

Keywords: Clustering; collaboration; network; entrepreneurship; competitiveness; sustainable development. (search for similar items in EconPapers)
JEL-codes: L10 L20 L25 L26 O39 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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