Journal of Investment and Management

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Successes and Challenges in Industrial Clusters: Some Empirical Evidence from Wood Industrial Cluster in Kumasi, Ghana

Received: 22 October 2017    Accepted: 21 November 2017    Published: 5 March 2018
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Abstract

This study examined some successes and challenges of a wood cluster in Kumasi, Ghana. A concurrent mixed method comprising survey, regression analysis, and correlation analysis were adopted to probe into how the effects of interconnections among firms in the cluster, the successes chalked and the challenges firms face in the cluster. Results showed significant (p < 0.001) interconnections among actors contributed to significant increase in productivity, sales and profit margins of the firms. Majority (93.4%) of respondents affirmed appreciable increases in sales and profit margins demonstrating that the cluster has been a major driver of economic growth. Permanent site for the artisans and other actors was the major benefit, provided by the cluster. However, lack of access to bank loans, timber, and waste management facility, promoting and marketing of products are some challenges associated with the cluster. Interventions from government and other agencies are required to create the enabling environment to attract investors that can help in addressing the challenges so as to stimulate growth of the wood and furniture enterprises in the cluster as they have greater potential for Ghana’s economic development.

DOI 10.11648/j.jim.20180701.11
Published in Journal of Investment and Management (Volume 7, Issue 1, February 2018)
Page(s) 1-12
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Industrial Clusters, Wood Artisans, Sokoban Wood Village, SMEs in Ghana

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Cite This Article
  • APA Style

    Martin Amoah, Gbapenuo Enoch, Peter Kessels Dadzie, Joseph Asomani. (2018). Successes and Challenges in Industrial Clusters: Some Empirical Evidence from Wood Industrial Cluster in Kumasi, Ghana. Journal of Investment and Management, 7(1), 1-12. https://doi.org/10.11648/j.jim.20180701.11

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    ACS Style

    Martin Amoah; Gbapenuo Enoch; Peter Kessels Dadzie; Joseph Asomani. Successes and Challenges in Industrial Clusters: Some Empirical Evidence from Wood Industrial Cluster in Kumasi, Ghana. J. Invest. Manag. 2018, 7(1), 1-12. doi: 10.11648/j.jim.20180701.11

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    AMA Style

    Martin Amoah, Gbapenuo Enoch, Peter Kessels Dadzie, Joseph Asomani. Successes and Challenges in Industrial Clusters: Some Empirical Evidence from Wood Industrial Cluster in Kumasi, Ghana. J Invest Manag. 2018;7(1):1-12. doi: 10.11648/j.jim.20180701.11

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  • @article{10.11648/j.jim.20180701.11,
      author = {Martin Amoah and Gbapenuo Enoch and Peter Kessels Dadzie and Joseph Asomani},
      title = {Successes and Challenges in Industrial Clusters: Some Empirical Evidence from Wood Industrial Cluster in Kumasi, Ghana},
      journal = {Journal of Investment and Management},
      volume = {7},
      number = {1},
      pages = {1-12},
      doi = {10.11648/j.jim.20180701.11},
      url = {https://doi.org/10.11648/j.jim.20180701.11},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jim.20180701.11},
      abstract = {This study examined some successes and challenges of a wood cluster in Kumasi, Ghana. A concurrent mixed method comprising survey, regression analysis, and correlation analysis were adopted to probe into how the effects of interconnections among firms in the cluster, the successes chalked and the challenges firms face in the cluster. Results showed significant (p < 0.001) interconnections among actors contributed to significant increase in productivity, sales and profit margins of the firms. Majority (93.4%) of respondents affirmed appreciable increases in sales and profit margins demonstrating that the cluster has been a major driver of economic growth. Permanent site for the artisans and other actors was the major benefit, provided by the cluster. However, lack of access to bank loans, timber, and waste management facility, promoting and marketing of products are some challenges associated with the cluster. Interventions from government and other agencies are required to create the enabling environment to attract investors that can help in addressing the challenges so as to stimulate growth of the wood and furniture enterprises in the cluster as they have greater potential for Ghana’s economic development.},
     year = {2018}
    }
    

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    AU  - Gbapenuo Enoch
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    Y1  - 2018/03/05
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    UR  - https://doi.org/10.11648/j.jim.20180701.11
    AB  - This study examined some successes and challenges of a wood cluster in Kumasi, Ghana. A concurrent mixed method comprising survey, regression analysis, and correlation analysis were adopted to probe into how the effects of interconnections among firms in the cluster, the successes chalked and the challenges firms face in the cluster. Results showed significant (p < 0.001) interconnections among actors contributed to significant increase in productivity, sales and profit margins of the firms. Majority (93.4%) of respondents affirmed appreciable increases in sales and profit margins demonstrating that the cluster has been a major driver of economic growth. Permanent site for the artisans and other actors was the major benefit, provided by the cluster. However, lack of access to bank loans, timber, and waste management facility, promoting and marketing of products are some challenges associated with the cluster. Interventions from government and other agencies are required to create the enabling environment to attract investors that can help in addressing the challenges so as to stimulate growth of the wood and furniture enterprises in the cluster as they have greater potential for Ghana’s economic development.
    VL  - 7
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Author Information
  • Faculty of Technical Education, University of Education Winneba, Kumasi, Ghana

  • Department of Construction and Wood Technology, University of Education Winneba, Kumasi, Ghana

  • Interior Design and Materials Technology Department, Kumasi Technical University, Kumasi, Ghana

  • Department of Construction and Wood Technology, University of Education, Winneba, Ghana

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