CLUSTERING – AN ENABLER TO THE LEATHER FOOTWEAR EXPORTING INDIAN SMES

Dr. Asif Ali Syed, Bianka Ray Chaudhury

Abstract


Clusters are a prominent and common feature in the present economy. They are defined as a geographical agglomeration of competing and related industries and have become the fundamental force behind the subsistence and growth of the SME sector. The study here wishes to explore the clustering activities present in the exporting leather footwear Indian SME sector and its effect on the export performance. This exploration has been done in the exporting leather footwear SME segment with 174 firms as sample size from four different clusters within India. The findings suggest that, though vertical clustering activities are present; the scenario behind horizontal clustering and institutional support is bleak. Nevertheless, the government has to gear up in order to develop and promote all
the types of clustering processes, as they have been found to significantly impact the export performance of the leather footwear firms.


Keywords


Clustering, SME, footwear.

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