Cluster: the globalization of economies
1JARAMILLO RODRÍGUEZ ENEIS, 2AGUIRRE FRANCO SANDRA LUCIA,
2HERNÁNDEZ TRUJILLO YANIER ALBERTO
1International Trade Program, Central Unit of Valle del Cauca, Kilometer 1 south exit Tuluá, Valle de Cauca -
COLOMBIA
2Business Administration Program. Central Unit of Valle del Cauca, Kilometer 1 south exit Tuluá. Valle de
Cauca - COLOMBIA
Keywords: Cluster, globalization, competitiveness, development strategy
Received: August 1, 2019. Revised: August 5, 2022. Accepted: September 1, 2022. Published: September 9, 2022.
.
1. Introduction
The changes that occur in the regions are considered
the result of economic, technological, strategic,
innovation and development changes and other
factors that make productivity a chain of shared
value. The same ones to which companies are
forced, in the face of the demands and new trends in
the processes of globalization and the opening of
markets to international scenarios; more specifically,
in developing economies that are little concentrated
and not saturated. Thus, as these transformations led
companies to have new administrative market, sales
and finance structures as well as new production
systems, as proposed by [9], "These transformations
led to new forms of economic and business
organization to face competition, which led to the
formation of the cluster, which symbolizes regional
development in modern times".
This document will address two specific issues in its
development, the cluster and globalization, as well
as its conceptualization from various authors, which
have contributed to its understanding and
adaptability by companies attached to the same
sector and being aware of the implications of
belonging to a cluster, adopt it as a growth and
development strategy to achieve the levels of
competitiveness and productivity required.
2. Theoretical Approach
It has been established, according to the readings
carried out, that Clusters are considered a strategy of
agglomeration of companies that seek to alienate
themselves in their market, financial and production
structures in order to reach the levels of productivity
and competitiveness that international markets
increasingly demand [31]
As stated by [24], "clusters are defined as
sufficiently dense sets of enterprises in
complementary industries operating in a geographic
region, aligned to serve a specific final demand".
This is how collectively they help to generate value,
which is reflected in the development of the regions
and of the country in general; a situation that allows
companies to feel supported by the government in
order to take advantage of globalization benefits; it
cannot be ignored that within all this context
companies must comply with appropriate
administrative and organizational guidelines
internally to be integrated into the cluster.
For authors such as [11], who considers that
companies in their business development have been
dealing with a series of stages that have helped them
to overcome national barriers and have placed them
in the context of globalization; a situation that
sometimes allows them to make structural decisions
WSEAS TRANSACTIONS on BUSINESS and ECONOMICS
DOI: 10.37394/23207.2022.19.142
Jaramillo Rodríguez Eneis, Aguirre Franco Sandra Lucia,
Hernández Trujillo Yanier Alberto
E-ISSN: 2224-2899
1576
Volume 19, 2022
Abstract: Globalization generated advanced competitive schemes that forced human beings and companies to
take new initiatives in order to face the new business models that are being developed. A new scheme, model
or strategic tool is the Cluster, which helps companies, governments and the community in general to have an
opportunity to compete at a global scale. This paper presents a theoretical-conceptual overview. It makes
reference of the contributions that have been made to the cluster concept: The globalization of the economy has
been consolidating over time and local regions accept it to mold new strategies for competitive development.
The constitution of clusters is not a fashion, it is a local development trend, which seeks to penetrate globalized
markets, but with the conviction that it cannot be achieved in "solitary", so that the "collectivity" of sectorial
business efforts, becomes the alternative for the formation of the cluster and thus be able to effectively meet the
exigencies of globalization. Therefore, this paper focuses on conceptual development around clusters and
globalization, from different chronological views of development.
regarding their development. This is how clusters are
considered to be constituted as a business
development strategy, without this being understood
as the loss of identity of large companies. With
regard to this situation [3], notes that "In fact,
clusters constituted around large companies and
subsidiaries of transnational companies are the
norm rather than the exception," which leads to
determine the importance of small companies
around the conformation of clusters also
highlighting that their administrative and
organizational structure facilitates the adaptation of
their processes to the exigencies outlined for the
conformation of the cluster.
Cluster formation can be seen as an innovative
process, and as such [7] "Innovation is an
instrument that allows us to know the capacity of a
company to create new concepts of goods and
services, or to develop new work and commercial
processes, as well as to qualify its ability to acquire
new knowledge and/or technologies", a situation that
contributes to the formation of clusters; This is how
a description of the factors that contribute to the
innovative and competitive development of
companies is made, addressing each of the areas that
are part of the organization and the role they play in
this process, which allows having integrated and
structured processes to meet the demands of the
business environment in which they are located; [25]
presents a new vision: "clusters affect competition in
three broad directions: First, by the productivity
growth of companies established in the area;
second, by the management, direction and movement
of innovation, which supports future productivity
growth; and third, by the stimulus to the formation
of new businesses, which expand and strengthen the
cluster." This leads to the identification of the role
to be played by academia, training and innovation
centers, research and development centers, among
others, which support the conformation,
implementation, development and evaluation of the
cluster, in any of its local, regional, national and
international dimensions, but always having
competitiveness and productivity as a foundation or
starting point.
For [20], "Collective and systemic competitiveness
seems to be the alternative to be followed, and that
competitiveness reproduces the paradox that
entrepreneurs have to cooperate to carry out their
mercantile movements as a condition for capital
accumulation", which helps to have a different
vision of business cooperation, focused on capital
factors, where competitiveness becomes a collective
and integrated space centering around the same
business purpose.
The cluster issue has been addressed since the
nineties, when the author [26] considered that
"clusters are geographical concentrations of
interconnected companies, specialized suppliers,
service providers, firms in related industries and
associated institutions...".
Other considerations that have been built around the
conceptions that we have of the cluster are those
exposed [14] who determines that "industrial
scaling implies moving to activities of greater value
in global supply chains", this is how some factors
that generate value are identified when the
productive scaling is established, business
associations or clusters, all identified with the same
objective, generate sectorial and regional
development from the local level:
(a) The sequences of export roles are
contingent, not invariant and therefore,
characteristic of industrial escalation. b)
Organizational learning in the global supply
chain, to improve the position of companies
and regions in international trade and
production networks, participation in the
global value chain is important as it places
companies and economies in potentially
dynamic learning curves. c) Physic, human
and social capital is relevant and effective in
networks. d)The escalation process
sustainment within a global value chain,
which implies having production chains
backwards and forwards, and access to the
type of learning that occurs through these
segments. (e) Scaling up enterprises, in
terms of changes along or between
commodity chains, is important but not
sufficient to ensure positive development
outcomes.
Another conceptual approach with respect to the
cluster is the one presented by [8] "companies
geographically close , vertically and horizontally
related, that involve local infrastructures to support
companies, with a shared vision of business
development based on competition and cooperation
in a specific field or market". Geographical
proximity facilitates the exchange of products and
services between companies that constitute an
economic sector, as well as it fortifies relations of
trust, responsibility and confidentiality, established
in cooperation and integration agreements, for the
conformation of the cluster.
In this regard [5], constitutes that cluster concepts
"do not contradict the traditional definitions of local
productive systems that characterize industrial
districts. In fact, they have been extracted precisely
from the district context, for their extensive
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DOI: 10.37394/23207.2022.19.142
Jaramillo Rodríguez Eneis, Aguirre Franco Sandra Lucia,
Hernández Trujillo Yanier Alberto
E-ISSN: 2224-2899
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application to territories other than industrial
districts and at different territorial scales". what, for
facts give to know the local development, as a
proposal of cooperation and mutual managerial
agreement, that within a medium and long-term
period can get to generate competitive advantages,
that for some theorists this may be conceived as
"advantageous" with respect to the conditions of
locality in which the companies are located, since for
some of them the conditions of production can be an
opportunity, with respect to the market conditions
that can be a weakness and it is from this perspective
that the concepts of reliability, responsibility,
cooperation and information transfer must be
understood, This is how a strong growth of the
cluster is generated by the arrival of new companies
that enter and generate an acceleration of the process
and imitation, being more focused on the
technological trajectory, so that the variety in the
cluster is reduced [16]. It reaches a critical mass
sufficient to generate economies of agglomeration
that increase their attractiveness and it is precisely at
this stage when companies and the cluster have
higher innovation rates.
The sets of actors and productive or cooperative
relations form a network of exchanges that allow the
economic units of the same system to achieve
individual and common objectives. Among the
types of networks there are business networks,
production chains and so-called clusters, which in
their maximum denomination can be very oriented
towards innovation as well as scientific and
technological development, even constituting
innovation systems; however, what is important is to
move from a mere economic agglomeration to an
active collaboration that leads to mutual adaptation
and interdependence between companies and the
different actors that regulate production and
marketing relations in the most efficient way.
According to what was proposed by [29] the Clusters
seek the "integration, analysis and agreement of
objectives for a productive chain or specific sector,
where the actors and participants are determined by
establishing common objectives that benefit each of
the participants", a situation that helps to strengthen
regional entrepreneurial development, in the same
way it allows to understand the degrees of
participation that the companies that adhere to a
cluster should have, each time that the
complementation that must exist between them,
must be read in terms of recognizing their business
weaknesses and complementing each other through
the strengths that must exist between them.
For [9], the clusters are framed in two scenarios
called the "intra-company cooperation" and the
"exchange of information", which allow them to
determine the factors of development that the
companies must have and that transcends to the local
field, regarding this topic, the issue of subcontracting
is approached, that in accordance with what [21]
proposes, it becomes a strategic ally that companies
must have for the accomplishment of some of the
activities either of the productive process and or
services; For [12] subcontracting is "a result of
company strategies", whose objectives were put into
play by the growth of inventories and financial
costs",... "Industrial subcontracting has created the
backbone of the industrial and commercial chains
that are currently registered in the global scope",
where the two authors came to the conclusions such
as subcontracting allows: 1) Increase market
segments or market niches; 2) Maintain a
technological balance in the production processes
through quality and just-in-time; and 3) configure a
cost structure capable of balancing the company's
profitability."
Based on the article proposed by [19] "A cluster is
made up of different aspects: First, we have the
member organizations that are formed especially by
companies, but universities are also involved,
professional associations, managerial or
technological development centers, public offices
and even social organizations. A cluster presents
three types of entities: the base-line ones, consisting
of the firms that produce the articles or provide the
central services such as clinics, health promotion
companies and hospitals in the case of health; a
second component is the complementary system such
as suppliers, distribution channels, development and
research centers and finally, a third one that is the
support strip such as professional, guild and
government entities", a situation that makes it
necesary to attach great importance to government
and corporate entities, business development
centers, the academia and other actors that intervene
in the conformation of the cluster, validating what
was previously mentioned and that is, clusters are
not a fashion, but a development strategy aimed at
reaching international markets.
Another concept of cluster, is the proposal made by
[10] "whose aim would be to the improvement of the
competitiveness of companies through the creation
of business fabrics. Therefore, it is important to
identify the sectors with productive potential, and for
this purpose the coefficient of location or relative
specialization was used", a situation that could
happen, after several studies of the different types of
associativity that occur among companies in the
same sector and whose business objective is focused
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Jaramillo Rodríguez Eneis, Aguirre Franco Sandra Lucia,
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E-ISSN: 2224-2899
1578
on reaching levels of competitiveness and
productivity in order to access the global market.
Globalization is not a concept created in the
nineteenth and twentieth centuries, it is a term that
was originated in ancient civilizations, but thanks to
the development of commercial and productive
structures of companies, it has been consolidating as
a development strategy for localities and thanks to
the conformation of unions, conglomerates and
clusters, these developments have transcended the
frontiers of the regional and national to reach the
international, the aforementioned has helped to
present some transformations, such as those
proposed by [22]:
- A greater ability of the popular sectors to organize.
- The increase in the effectiveness of municipal
public policies, facilitating the transfer of new
capacities to society.
- The improvement in the democratic quality of
political institutions, overcoming the paradigm of
paternalistic clientelism.
- The creation of multi-actor spaces for dialogue,
reflection, consciousness of problems and the search
for negotiated solutions.
- Re-articulation of relations between civil society
and government.
These transformations not only had market and
product implications, but also social and political
ones, which allowed companies to meet market
demands in a timely manner.
From the studies that have been carried out by the
[4] (National Central Bank) economic globalization
is understood as "the integration of national
economies with the international economy through
different mechanisms, among which the following
stand out: The trade of goods and services; the
movement of money between countries in search of
financial profitability or for the creation of
companies in the productive sector; the
international flows of workers and people in
general; and, lastly, the flows of technology", which
allows giving greater importance to the local
development endeavor, not only from the integration
of the companies, but also from the goods and
services production dynamics and therefore their
commercialization, which must have a vision of
greater scope towards the international markets,
reflected in factors of innovation and technological
development.
From the perspective of the globalization of the
economy, some of the contributions made by [18]
are taken up again, "we consider as a starting point
the processes of structural change in world
economic activity, which occurred during the last
decades of the twentieth century, which forced the
search for new alternatives of local and regional
development with models adjusted to the new
paradigms of the world economy", being this a
fundamental scenario for companies that form or are
part of the same economic sector to look for
alternatives of associativity and development that
allow them to face these new challenges. Although
the business dynamics affect the sector dynamics,
these in turn affect the dynamics of local and
regional development, help to the conformation of
new production systems, it is as well as [27], propose
the following scheme of the impacts that
globalization has generated:
Figure 1: The territorial impact of globalization.
Source: Taken from [27]
The aforementioned makes it possible to establish
the importance that the changes in company
structures have had for the development of the
regions, not only at the internal level of the
companies that make up the same sector and that
help to delimit different types of associations known
as industrial districts and agglomerations or as for
the case of this paper's central theme, but also in the
structures of markets and production systems.
It should be noted that from the perspective of cluster
generation, the management of the organization
plays a fundamental role, provided that its
development guidelines are aimed at generating
spaces for participation, development and
integration of employees in the processes that are
being carried out; a situation that is reflected in the
improvement of each one of the areas of the
organization and that as a whole consolidate the
creation of the cluster towards business
competitiveness.
Innovation
Considered as the process of change that companies
make to become competitive, be sustainable in time,
meet market demands opportunely, generate
improvement scenarios and adaptability to new
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Jaramillo Rodríguez Eneis, Aguirre Franco Sandra Lucia,
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E-ISSN: 2224-2899
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processes, without losing the essence of the
company, leaving aside its principles of mission,
strategy and human development, but always
projecting a scenario that is competitive and
sustainable in the long term, but that is built in the
short and medium term [1]
Some of the factors defined to drive innovation in
companies and that have to be addressed by
managers, administrators and entrepreneurs,
according to the behavior of the economies of the
countries, have successfully allowed them to
leverage the changes generated, are:
Table 1: Agents that impulse business
sophistication and innovation.
BUSINESS
SOPHISTICATION
INNOVATION
Local suppliers, quantity
Ability to innovate
Local suppliers, quality
Quality of scientific
research institutions
Cluster, development
status
Companies'
expenditure on
Innovation and
Development
Nature of competitive
advantage
University-Industry
Collaboration
Value Chain Width
Public procurement of
high-tech products
International distribution
Control
scientists and
engineers Availability
Production processes
Sophistication
Utility Patents
Marketing processes
Scope
Willingness to delegate
authority
Source: Data adapted from [15]
Innovation as a strategic process, [23], is based on
actions and business development activities that
generate: "a) Organizational environments and
spaces for the creation of ideas, b) Willingness to
exploit them and c) Efficient management
procedures that allow organizations: Understand,
design, implement and evaluate innovative strategies
to promptly respond to changes caused by the
business environment requirements in which they
are located, equally, it has to keep in mind that to
respond to external changes development strategies
must be generated within the organization itself,
being this a huge responsibility of the manager,
manager or entrepreneur, who has to generate the
spaces for participation, development and
integration of collaborators in each of the processes
that are carried out to make innovation a process
with competitive results.
It is defined by [13], as "the ability of a nation to
meet its economic policy objectives, especially in
terms of economic growth and job creation, without
generating difficulties in the balance of payments".
In some of the texts consulted such as those of [30],
who makes an analysis on the competitiveness from
different sources, it is worth pointing out that there
are different opinions on the matter, some positive,
such as those exposed by [24], "The competitiveness
of a nation depends on the capacity of its industry to
innovate and improve", other as exposed by [17],
who "affirms that the term competitiveness is used
without any consideration of its meaning. This fact
can be attributed to the lack of a concise definition
and to the diffusion of a plethora of isolated
definitions that introduced the economic works,
without taking solid theory as base on the
competitiveness".
Defined by the World Economic Forum [2], as “the
combination of institutions, policies and factors that
determine a country's level of productivity. The level
of productivity, in turn, establishes the level of
prosperity that an economy can maintain in the
medium and long term”.
3. Academic Debate
The cluster: Globalization of the economy, is
consolidated as a strategy for business development,
provided competitiveness and productivity are the
basis or starting point, as presented in the "Porter's
Diamond" also known as the "Competitive
Diamond", wich serves as a basis for the
development of clusters, observing the complexity
of its application, but determining the importance of
developing them. When reference is made to
industry, this means any of the sectors, whether
industrial, service or commercial.
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Jaramillo Rodríguez Eneis, Aguirre Franco Sandra Lucia,
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Figure 2: The competitive diamond.
Source: taken from [24]
While clusters are based on "intra-company
cooperation" and "information exchange," they are
consolidated by identifying determining factors that
generate value thanks to the information that is
transferred between companies seeking to partner in
the face of globalization: (see figure 2)
Figure 3: Determinants of Clusters
Source: Taken from [9]
Business globalization can be understood as the
transition that took place between different schools
of economic development before and after the
1980s, which has allowed globalization to be
recognized not simply as a market operation, but as
a scenario of business transformations specific to
each locality, as shown in the graph.
Figure 4: Evolution of regional development as a
theoretical concern.
Source: Information taken from [9]
Geographical proximities become a competitive
advantage for companies that according to their
market , production and financial, and personnel
structures, are willing to form a cluster that would
allow them to enter into the globalization processes,
but as it was stated at the beginning of this writing,
they cannot do it in "isolation" and consequently the
conformation of " business groups ", will allow them
to effectively meet the proposed objectives in the
medium and long term, which are reflected in the
development and strengthening of the sector, and of
the geographical localities where the cluster is
located, are decisive for achieving competitiveness
and productivity, while achieving volumes of
exportable supply.
The conformation of the cluster, to face the
challenges of globalization, the clusters are
consolidated from the perspective of trust,
credibility, responsibility and confidentiality of the
agreements and commitments that are assumed by
each of the companies involved, it should be noted
that the conformation of the cluster does not demand
companies to give up their processes and procedures,
but rather to generate scenarios for improvement and
sophistication, succeeding in forming a Public-
Private Alliance.
Other elements that must be considered for the
formation of clusters and that allow them to meet the
demands of globalization in a timely manner is the
active participation of unions, government agencies,
other economic actors and that among all mark out
regional development, towards an economic
globalization, therefore the contributions of [14]
cannot be isolated to a learning process based on
proposal, implementation and evaluation of the
cluster, thereby rescuing the objectives of the cluster.
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Jaramillo Rodríguez Eneis, Aguirre Franco Sandra Lucia,
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Figure 5: Objectives of the clusters
Source: Own construction, based on contributions
from [14]
The forces that determine the dynamics of the cluster
and that are exposed by [19], lead companies to
generate dynamics of innovation and development in
their processes and procedures from their internal
perspectives, attending quality parameters that lead
them to meet the demands of competitiveness and
productivity, such forces are:
1- Endogenous development, which is established in
the vertical and horizontal lines.
2- The attractive force that directs companies, talent,
information and knowledge towards the cluster and
increases its profitability.
3- The external forces that act on it to change its
course.
4- That of propulsion, by means of which the same
group acts on the environment, changing it.
4. Conclusion
In conclusion, clusters are an alternative for business
development, local, regional and national; to
eventually achieve the globalization of the economy.
It is a process that is built from the agreement of
internal and external wills, where each actor has its
role and function, recognize the business potential
and strengthen the weaknesses that companies may
indeed have.
It is not a matter of obligation; it is a matter of will.
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