Abstract
This study examined some successes and challenges of a wood cluster in Kumasi, Ghana. A concurrent mixed method comprising survey, regression analysis, and correlation analysis were adopted to probe into how the effects of interconnections among firms in the cluster, the successes chalked and the challenges firms face in the cluster. Results showed significant (p < 0.001) interconnections among actors contributed to significant increase in productivity, sales and profit margins of the firms. Majority (93.4%) of respondents affirmed appreciable increases in sales and profit margins demonstrating that the cluster has been a major driver of economic growth. Permanent site for the artisans and other actors was the major benefit, provided by the cluster. However, lack of access to bank loans, timber, and waste management facility, promoting and marketing of products are some challenges associated with the cluster. Interventions from government and other agencies are required to create the enabling environment to attract investors that can help in addressing the challenges so as to stimulate growth of the wood and furniture enterprises in the cluster as they have greater potential for Ghana’s economic development.
Highlights
Industrial clustering geographically concentrates interconnected companies, specialized suppliers, service providers, firms in related industries, and associated institutions such as universities, standards agencies, trade associations, in a particular field to compete and cooperate for mutual benefits, growth and development [1]
Worthy to note that a good number of the artisans who represents a substantial part of the respondents were operating as suppliers (34%), marketers (20.6%) and buyers (11.4%) as ancillary activities which served as supplementary source of income to their main activities
This research paper provides insight into the interconnections, impacts, benefits and the challenges of an investment made by the government of Ghana in agglomerating small and medium scale furniture enterprises (SMEFEs) in an industrial cluster using Sokoban Wood Industrial Cluster (SWIC) as a case study
Summary
Industrial clustering geographically concentrates interconnected companies, specialized suppliers, service providers, firms in related industries, and associated institutions such as universities, standards agencies, trade associations, in a particular field to compete and cooperate for mutual benefits, growth and development [1]. Industrial clusters have played different roles in nations’ economic development including being the main drivers of innovation, business retention and expansion, financial incentives to firms, entrepreneurship and commercial research [2]. It is documented that industrial clusters result in easy access to suppliers and customized support services, creation of framework for firms to collaborate with one another and governments to promote common interests, and develop specialized labour pools. All of these are precursors to improved conditions and labour
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