Cluster-Based Industrial Development: Kaizen Management for by T. Sonobe, K. Otsuka

By T. Sonobe, K. Otsuka

This ebook examines the right way to advertise business improvement in low-income international locations. It considers the position of investors within the evolution of a cluster, the function of managerial human capital, the influence of the 'China shock', and the position of business rules considering overseas wisdom move in aiding the upgrading of clusters.

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Cluster-Based Industrial Development: Kaizen Management for MSE Growth in Developing Countries

This publication examines easy methods to advertise business improvement in low-income nations. It considers the position of investors within the evolution of a cluster, the position of managerial human capital, the impression of the 'China shock', and the function of business regulations all in favour of foreign wisdom move in aiding the upgrading of clusters.

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To our knowledge, continual improvement is never achieved without learning from outside of the cluster, especially from abroad. More concretely, innovative entrepreneurs acquire new knowledge of technology and management by visiting foreign countries frequently to participate in trade fairs and training programs, sending workers abroad for training, and inviting foreign experts. 4 below. Entrepreneurs in Asia have been keen on learning from the successful experiences of advanced enterprises in neighboring countries.

4 below. Entrepreneurs in Asia have been keen on learning from the successful experiences of advanced enterprises in neighboring countries. 5 A question may arise as to whether the cluster can jump-start from the quality-improvement phase, rather than experiencing the quantityexpansion phase, by learning advanced production methods and management know-how from abroad. Our answer is affirmative. As will be discussed later in this chapter, the garment cluster in Bangladesh from the beginning consisted of relatively large enterprises which employed 300 workers or so on average.

12 At the same time, a large number of 28 Cluster-Based Industrial Developments enterprises left the industry in the late 1990s because their management was too inefficient to be reformed. As a result, the number of independent enterprises as opposed to subsidiaries in the sample increased from 66 to 94 in the early 1990s and decreased to 73 in the late 1990s. 2, which is in sharp contrast to its moderate growth during the first half of the 1990s. The driving force of the explosive expansion in the sizes of the enterprises and the cluster as a whole is the upgrading of product quality and improved marketing.

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