An integrated analysis of socioeconomic structures and actors in Indonesian industrial clusters

PhD ceremony: Ms. P. Ismalina, 16.15 uur, Academiegebouw, Broerstraat 5, Groningen

Title: An integrated analysis of socioeconomic structures and actors in Indonesian industrial clusters

Promotor(s): prof. L. Karsten

Faculty: Economics and Business

This thesis involves three main issues: (1) socioeconomic structures of the clusters, (2) the role of actors in local business associations, and (3) the interplay between the two. The research consisted of fieldwork conducted from July 2007 to July 2008. This included in-depth interviews with participating local people (retailers, manufacturers, subcontractors, workers, and suppliers) and local government, a survey of 210 firms (local retailers, manufacturers, and retailers who have their own workshops) using a questionnaire, and participation and observation of meetings of local business associations and rotating saving groups.

Ismalina found the main conclusion about the dynamics of the studied Indonesian clusters: The simultaneity of market relations and social embeddedness among participating firms emerges in the three studied clusters and constitutes socioeconomic structures of the clusters.

Socioeconomic structures of the clusters not only are supported by individual cooperation but also originate from collective actions that occur in local business associations. Collective action is not simply a mode of harmonizing interests but rather is employed to mitigate conflicts among local people. Some local actors in local business associations have a significant role in creating a peaceful, fair, and healthy business environment. This is part of the way they facilitate socioeconomic structures of a cluster and how they support the advancement of the dynamic process. Thus, the actors use local business associations to facilitate the collective learning of the members.