ARE SMALL-FIRM CLUSTERS EMERGENT PHENOMENA? EVIDENCE FROM ZIMBABWE’S SMALL FURNITURE- MANUFACTURING FIRMS

Godfrey Muponda and Isaac Chaneta
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Godfrey Muponda: University of Zimbabwe, P.O. Box MP 167, Mount Pleasant, Harare
Isaac Chaneta: University of Zimbabwe, P.O. Box MP 167, Mount Pleasant, Harare

EcoForum, 2014, vol. 3, issue 2, 6

Abstract: The purpose of this study was to explore the reasons behind the rapid growth and apparent dynamism of Zimbabwe’s small-firm industrial clusters. The hypothesis behind the study was that these small-firm clusters are emergent phenomena. The study analysed the capital utilisation techniques of small firms located in a large industrial cluster in order to determine the factors that lead to the collective efficiency of such firms. The study found that, in comparison with large, stock exchange-listed firms, the cluster environment enables the small firm to operate from a relatively small capital base and also to use its capital more efficiently in creating revenues and profits. The individual firm does not have to invest its capital in a large assets base as this is done by a specialised group of firms within the cluster. Thus, the cluster has the characteristics of an emergent phenomenon.

Keywords: Cluster; Emergence; Symmetry breaking; Total Assets Turnover; Return on Capital Employed. (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:scm:ecofrm:v:3:y:2014:i:2:p:6

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