Location, Market Access, and Business Performance of Cluster-Based Enterprises
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outside enterprises, for which cost and availability of land and buildings are as important as market access in explaining their current location. Given the cluster premium on market expansion, as discussed in chapter 4, it is understandable that enterprises are attracted to clusters because of their enhanced accessibility to geographically wider sales areas. Locations that attract more customers are more important than locations that are close to customers. For enterprises keen on accessibility of markets both inside and outside of the clusters, access to sales markets (customers) appears to be more significant than accessibility to suppliers of inputs. For cluster-based enterprises in particular, locations that allow enterprises to attract customers from a wider geographic area are more important than simple physical proximity to customers. Rather than moving to where the customers are, enterprises choose to be located where customers can easily come. This is quite intuitive if we consider a case where enterprises would prefer to set up a workshop close to a major road rather than in the middle of a residential area or office district. Spontaneously grown industrial clusters are mostly located where there is relatively easy access to road networks. Access to markets is also a primary factor for considering relocation to an alternative location. Not all enterprises are satisfied with their current location, and many indicated that they would move to a different location if given the chance (see table 5.2). Both inside and outside the Table 5.2 Top Reason for Wanting to Move to New Location, by Reason for Choosing Current Location % of respondents giving the reason Reason for choosing current location Inside of clusters Factor Land Market Other Total Outside of clusters Factor Land Market Other Total
Reason for wanting to move to a new location Factor
Land
Market
Other
Total
0.0 0.0 1.4 0.0 1.4
0.0 4.3 15.9 0.0 20.2
0.0 18.8 34.8 1.4 55.0
2.9 7.2 8.7 4.3 23.1
2.9 30.3 60.8 5.7 99.7
1.7 0.0 5.1 0.0 6.8
1.7 3.4 5.1 1.7 11.9
1.7 20.3 30.5 5.1 57.6
0.0 13.6 8.5 1.7 23.8
5.1 37.3 49.2 8.5 100.1
Source: Bougna and Yoshino 2009, based on the data of micro and small enterprises inside the 10 light manufacturing clusters and their outside comparators collected as part of the original five-country case studies of industrial clusters.