Early stage cluster development: a manufacturers-led approach in the aircraft industry

Abstract

Purpose – The purpose of this study is to explore the early stage of development of a cluster. The literature on early stage of cluster development shows that there are often random effects such as an entrepreneur and spin-off companies, and in this study, a coordinated approach for cluster development is described. Design/methodology/approach – A single exploratory case study approach is followed. The aerospace cluster in the Spokane region, State of Washington, is described. Data from a variety of sources are triangulated to enhance the credibility of the case study findings. Findings – It was found that although there are many types of collaborations occurring in the region, which involve policy and government organizations, the main driver of the early-stage cluster development is manufacturers-led coordinating mechanism. Individual manufacturers are too small to be successful in the aerospace industry, and they are collaborating to present a united “front” to out-of-the-region customers. Once customers place an order, then within this coordinating mechanism, the work is divided among different manufacturers. Research limitations/implications – The research has two main limitations. First, it is a single case study, and therefore, the results may not be generalizable. Second, the cluster is in an early stage of development, so it is not (yet) clear whether this manufacturers-led coordinated approach will have long-term success. Practical implications – The studies offer potential for cluster development that go beyond relying on a single entrepreneur or on mostly government- or policy-driven initiatives. Instead, this is an approach that can be used by industry to lift the overall competitiveness of their region. Social implications – This cluster development approach offers potential for economic development of smaller regions which mainly consist of small- and medium-sized companies without endowment benefits or a large local customer base. Originality/value – This study adds to the existing knowledge on clusters and cluster types. The identified cluster approach does not fit with the main types of clusters that have been identified in the literature. The companies involved are mainly small- to medium-sized companies, but by coordinating their capabilities, they are able to present core capabilities in a much more attractive manner to customers. This cluster development approach is not driven by or achieved through advantages in innovation, vertical or horizontal supply chain competition and advantages, creation of spin-off firms, or a regional demand base as customers are located outside the region. It deviates in terms of the types of companies involved and, mostly, in a sense that it acts as one unit to customers who are located outside the region.