The Power of Clustering and HRM as a Source of Competitive Advantage: Evidence from Clusters from Poland, Slovakia, the Czech Republic, India and Developed Countries

Abstract

This article tries to reveal whether the cluster approach can really support human resource management to act as a driver for regional economic development so as to strengthen the firms’ competitive advantages for doing business. The analysis mostly relies on research on cluster activities and human resource strategies that enable a firm to achieve a competitive advantage. The study is based on some evidence of clusters from Poland, Slovakia, the Czech Republic, India and Developed Countries. This study reveals that, firms see the joining of clusters as a way of sustaining their competitive advantage and to enhance the regional economic development. Through clustering, they can share their strategic information, increase their innovative capabilities and find new market places, which broaden the competencies associated with individual professions. Finally, based on interview discussions with cluster managers in different countries, the results of this research confirms that, cluster activities support the Human Resource Management (HRM) of the cluster’s core firms to enable them to survive in this competitive world.

Keywords

• Clustering
• competitive advantage
• economic development
• Human Resource Management (HRM)
• industrialization
• internationalization