WHAT DO MEMBERS EXPECT FROM CLUSTER MEMBERSHIP? THE CASE OF THE CROATIAN WOOD CLUSTER

Abstract

The purpose of this paper is to investigate the composition of services and firms in a wood industrial cluster based on members’ interests and examine the differences among the groups. Since firms have very different interests when joining the cluster, this paper develops the taxonomy of cluster members based on their expectations regarding services and investigates the differences and similarities among groups in firms’ characteristics, their resources, innovative activities, the performance of firms, and perceived cluster performance. The data collected from members of the Croatian wood cluster were explored using factor and cluster analyses. The results revealed three categories of services that the cluster should provide: 1) lobbying; 2) facilitation of networking and cooperation; and 3) supporting joint logistics and joint access to the market. Four groups of members were identified, named as 1) cooperation and lobbying-oriented; 2) market-oriented; 3) purely lobbying-oriented; 4) purely networking and cooperation-oriented. Group 1 (44% of the sample) scores high on all categories of services. It contains more firms that innovate and more high-growth firms. Members in this group evaluate the effects of the cluster better than the other two groups. The study offers new evidence on the alignment of cluster services with the interests of cluster members, indicating different levels of performance among groups in a small cluster in traditional forest-based industries. The findings can help managers not only in the Croatian wood cluster but also in other similar small cluster organisations in Central Eastern and South-Eastern Europe to use their limited resources more efficiently and enhance the competitiveness and performance of the firms/sector.