Cluster factors for productivity improvement: A case study for a home appliance cluster in Mexico

Karol Villarreal, Karla Guerra, Ruben Molina, Luz Maria Valdez de la Rosa

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Abstract

Since the early nineteen hundred several associations have risen. These are cluster associations of concentrated firms belonging to the same industrial sector receiving support from academic institutions and the local government in order to enhance competitiveness. Literature seems to be vast on studying the effect of clusters on the competitiveness of members (see Karaev, Koh, and Thomas-Szamosi 2007; Awad and Amro 2017; Carrie 1999). However, there is vague formal analysis of the effects that clusters have on members' productivity. Therefore, this study aims to analyze whether Geographic Proximity, Social Capital and Innovation within a cluster affect cluster members' productivity, particularly in a local Mexican Home Appliance Industry Cluster (CLELAC). The data for analysis was retrieved using a self-designed survey, applied to current executives from the companies which are members of the cluster. This data was analyzed using the Partial Least Squares Algorithm, introducing the construct of Productivity as the dependent variable, and the constructs of Geographic Proximity, Social Capital, and Innovation as the independent variables. The results suggest that Geographic Proximity and Social Capital within a cluster affect positively firm's productivity growth, which proves the first two hypotheses of this study. Apart from the hypotheses, two new causal relations were found in the model: Proximity and its positive impact on the cluster's Social Capital; and Social Capital's impact on Innovation within the cluster. However, the impact that Innovation within the cluster may have on firm's productivity could not be proven.

Original languageEnglish
Title of host publication4th North American IEOM Conference. IEOM 2019
PublisherIEOM Society
Pages391-392
Number of pages2
ISBN (Print)9781532359507
Publication statusPublished - 1 Oct 2019
Event4th North American IEOM Conference. IEOM 2019 - Toronto, Canada
Duration: 23 Oct 201925 Oct 2019

Publication series

NameProceedings of the International Conference on Industrial Engineering and Operations Management
ISSN (Electronic)2169-8767

Conference

Conference4th North American IEOM Conference. IEOM 2019
CountryCanada
CityToronto
Period23/10/1925/10/19

All Science Journal Classification (ASJC) codes

  • Strategy and Management
  • Management Science and Operations Research
  • Control and Systems Engineering
  • Industrial and Manufacturing Engineering

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  • Cite this

    Villarreal, K., Guerra, K., Molina, R., & de la Rosa, L. M. V. (2019). Cluster factors for productivity improvement: A case study for a home appliance cluster in Mexico. In 4th North American IEOM Conference. IEOM 2019 (pp. 391-392). (Proceedings of the International Conference on Industrial Engineering and Operations Management). IEOM Society.