Clusters and supply chain management: the Amish experience

Abstract

Purpose -To demonstrate the linkage between Porter's cluster theory and supply chain management, and provide evidence of their potential joint positive impact on competitiveness and firm performance. Design/methodology/approach -The paper examines the linkage between cluster theory and supply chain management using data from a case study of the Amish furniture industry in Homes County, Ohio, USA. Findings -Using the Amish furniture industry and a representative furniture firm as examples, the paper shows the positive impact of operating within an integrated supply chain in a geographically concentrated cluster. Research limitations/implications -Use of a single case study approach limits the generalizability of the findings; the paper recommends further study of linkages in other industries and locations. Practical implications -The study suggests that firms build competitive advantage by initially focusing primarily on local resources when selecting supply chain partners, rather than looking only for low cost advantage through distant sourcing. Originality/value -This paper adds to the literature on business linkages by proposing an expanded definition of clusters as geographical concentrations of competing supply networks.

A Review on the Integration of Supply Chain Management and Industrial Cluster

“… Importance of CSC: To demonstrate the linkage between supply chain and industrial cluster theories. Some articles provide evidence on the integration of these two independent disciplines increase the competitive advantage of industries and firm performance (for example, DeWitt et al, 2006;Patti, 2006;Sadler, 2007;Bozarth et al, 2007;Sureephong et al, 2008;Han, 2009;Nicolini et al, 2010;Bardy, 2010; T.G. Bosona & G. Gebresenbet,2011).…”

“…Basically, SCM and IC belong to two different areas of study. Some scholars have shown interest in the integration and maximization of their benefits (DeWitt et al, 2006;Han, 2009;Sureephong et al, 2008;Huang & Xue, 2012).…”

3d Partition-Based Clustering for Supply Chain Data Management

“…The clustering involving in socially homogenous neighborhood ensures an optimization based on proximity and lowers the transaction costs. It builds long-term relationships among firms involved from the source through to end-users (DeWitt et al, 2006). In addition, clusters can attract suppliers and they can locate the companies next to their largest demand centers.…”

Overview of Past and Ongoing Experiences Dealing with the Environmental Management at Cluster Level

“…This is a trend not developed theoretically and empirically yet, but which contributes to clarify some important aspects of the relationship between cluster and supply chain. Some authors observe that one of the key elements of Porter's cluster theory -the benefit deriving from knowledge exchange and cooperation between firms -is shared by the theorists of the 12 "A cluster is a geographically proximate group of interconnected companies and associated institutions in a particular field, linked by commonalities and complementarities" (Porter, 1998). supply management theory13 (De Witt et al, 2006;Mentzer et al, 2001). In fact, supply chain management aims at producing benefits for companies that are part of the chain through process integration and the set up of long term relationships (cooperation, trust) among companies.…”