Strategic Management in SMEs in the Context of Clustering

Abstract

Nowadays, the effects of global dynamics are directive on enterprises. Competitiveness is triggered by these dynamics and determine the efficiency of enterprises. Therefore, not only the local and national dimension, but also the global actors have a say on the viability of enterprises and their competitiveness. In such an ecological environment, it is possible to come across many strategies for gaining competitiveness and skills. Porter points out that the national resources should be used optimally and that each country should specialize in specific areas and build clusters through these areas and thus use the resources effectively. Therefore, it draws attention to “the importance of clustering,” which is one of the instruments effective in competitiveness with global dynamics. In this study, strategic management processes of small and medium-sized enterprises in the context of clustering will be discussed. In addition, the contribution of cluster studies to SMEs in Industry 4.0 digitalization process will be briefly mentioned.

Key Terms in this Chapter

Strategic Management: It is the management philosophy that analyzes the goals that an organization wants to achieve in the future and how it is achieved.

Clustering: It is a working model that brings together the companies and the supporting firms and institutions operating in the same or similar line of business, geographically close to each other, cooperating and competing with each other.

SMEs: SMEs are defined as enterprises that employ less than 250 employees annually and whose annual net sales revenue or financial balance does not exceed amount specified in the law.