Cluster-Based Industrial Development: Kaizen Management for by T. Sonobe, K. Otsuka

By T. Sonobe, K. Otsuka

This e-book examines tips to advertise commercial improvement in low-income international locations. It considers the function of investors within the evolution of a cluster, the function of managerial human capital, the influence of the 'China shock', and the position of commercial regulations fascinated with foreign wisdom move in helping the upgrading of clusters.

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Extra resources for Cluster-Based Industrial Development: Kaizen Management for MSE Growth in Developing Countries

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The development experience of the garment industry in Bangladesh provides prima facie evidence that managerial and technological capabilities can be fostered in an industry in a sustained manner by learning from abroad through training and work experience, if educated people are available to the industry. It is also clear that it does not fully pay for private enterprises to invest in the training for the acquisition of new knowledge because the benefits later on spillover to other enterprises, causing adverse impact to the same private enterprises who originally invested.

2 The role of marketing innovations: The electrical-fittings industry in China9 When the economic reform started in 1978 in China, people in Wenzhou, a now industrialized city in Zehjiang Province, were destitute because the city was endowed with arable land but was densely populated, according to the city officials that we interviewed. Few stateowned enterprises were set up in this city because of its geographic 26 Cluster-Based Industrial Developments proximity to Taiwan. The township and village governments in the city could not afford to establish collective township and village enterprises (TVEs).

143). Innovation and Cluster Development 29 enterprises had as many as 800 sales agencies throughout China by the late 1990s, even though these enterprises put higher priority on the development of their own retail networks. They solved the agency problem arising from the use of sales agencies by means of local community ties, which was an effective solution because almost all of their sales agencies are merchants from Wenzhou who had settled in large cities earlier. Thus, the enterprises in Wenzhou took advantage of the tradition of out-migration to lower the agency cost.

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