Local Firms’ Strategies and Cluster Cooperation in the Czech Republic: The Case of the Packaging Manufacturers Cluster

Abstract

Cooperation between enterprises is the basis for local clusters' existence and developments. Local clusters are some of the tools which support performance and competitiveness. This article analyses the influence of the existence of a cluster in the packaging industry on the financial performance of its member companies. This paper addresses the impact which the membership of some enterprises in a cluster could have on their financial performance. The research file consists of founding enterprises from the Packaging Manufacturers Cluster. Enterprises that create the core of the cluster do business in industries with the following statistical classifications: CZ-NACE 162400, 172100 and 222200. ROE, ROA and EVA/sales indicators were used as a criterion for evaluating financial performance. For the assessment of financial performance the Malmquist index is applied with two inputs and one output. The aim of the research was to verify the statement that business entities' membership in the local cluster translates into improved financial performance in a time series. The research has shown an improvement in financial performance in companies in the local cluster.

Effect of cluster initiatives and natural clusters on business performance

“…The oldest institutionalized cluster has been operating in the Czech Republic since 2002. However, the clusters subprogram under the Operational Program Industry and Enterprise in 2004–2006 was a major impetus for the establishment of institutionalized clusters in the country, and with such support, 23 institutionalized clusters were established in this period (Pelloneová and Žižka, 2019). This study only includes institutionalized clusters in the mature stage (established in 2010 at the latest) as the positive effect of the cluster can be expected only with a certain delay.…”