Driving Business Exports in Emerging Markets: Business Clusters as a Policy Option for Internationalisation

Abstract

A few decades ago, most research works on internationalisation were aligned to studies in developed economies. In recent times, business entrepreneurs in developing and emerging economies have shown their potential to permeate international markets. The current capability of business entrepreneurs in developing and emerging economies, which drives their ability to overcome the numerous barriers to internationalisation, particularly within clusters, requires a critical examination. As a result, the study situates the discussion on internationalisation within the theory of agglomeration in developing and emerging economies and argues that the gains enjoyed by business entrepreneurs from operating in close proximity in clusters are critical for overcoming the barriers of internationalisation. This research adopts a systematic review of secondary data to tease out the unique attributes of clusters in developing and emerging economies, which supports the internationalisation drive. The findings show that most emerging economy clusters are engaged in exports but there is minimal work on international entrepreneurs operating within clusters. The unique features that drive exporting clusters are the presence of multinational companies, public agencies and collaborative relationships. These unique features have the capacity to minimise the constraints to internationalisation and determine the export performance of businesses in the cluster.

Citation

Ayakwah, A., Osabutey, E.L.C. and Damoah, I.S. (2019), "Driving Business Exports in Emerging Markets: Business Clusters as a Policy Option for Internationalisation", Haddoud, M.Y., Jones, P. and Onjewu, A.-K.E. (Ed.) International Entrepreneurship in Emerging Markets: Nature, Drivers, Barriers and Determinants (Contemporary Issues in Entrepreneurship Research, Vol. 10), Emerald Publishing Limited, Leeds, pp. 81-97. https://doi.org/10.1108/S2040-724620190000010008