Cooperation,

Mergers,
Subcontracting,
Clustering & Networking
(in the Context of the
4IR, in Manufacturing,
Agriculture, Other
Sectors)
21/04/2024 Tsegabirhan W.Giorgis 1
 Zero – Sum Game vs. Positive Sum Game
1. Competition vs. Cooperation: Which one drives human behavior and performance?
Should we cherish, cultivate a zero-sum game mentality or a positive sum-game mentality?
What is their difference?
2. Zero-sum game: Zero-Sum Game is based on the belief of rivalry and hostile competitive
relationships. Success is a rival and exclusive good. It is a win/lose game. The gain of someone is
at the expense of another. There is extrinsic satisfaction, a sense of satisfaction in view of your
relative position with your competitors. You as a person would be the happiest person if you excel
& outshine everyone else. If you get an A+ alone and everyone else gets an ‘F’, your feel you are
the best. The success of one is measured, appreciated in view of its relative position with its
‘competitors’, ‘rivals’, ‘enemies’. In such a mindset, competition (external pressure) is the
preferred and effective driver of social, economic and political outcomes & changes. The free
market, free competition model rests upon such mindset, belief.
3. Positive-sum game: Positive-Sum Game depends upon collective efficiency concept. It gives
much conceptual space towards cooperation and coordination. Success is non-rival and non-
exclusive good. The governing criterion is an intrinsic meaning & derived satisfaction of an
achievement. The ideas and values of cooperation, collaboration, mutual existence, fraternal
relationship, the belief in lasting peace rest upon the concept of positive sum game. So each
player has a positive mindset towards her/his neighbor, competitor, co-worker, colleague, people
with different ideas, interests. The success of someone else is a positive example, an opportunity
of learning. In such a culture, it is one’s purpose of life, be it individual or organizational, that
drives action. It is such purpose-driven willpower, sense of shared mission that directs human
thoughts, emotions, and actions not rivalry, not sense of envy at all. Note that there are
situations which call for cooperative competitiveness. (Friedman, Christensen & DeGroot,
1998, p. 119) and (Gonsher, Ian, 2017, p.1)
21/04/2024 2
 Cooperation & Collaboration vs. Competition

• Subcontracting, Clustering &

Networking signify cooperation,
collaboration & coordination.

21/04/2024 Tsegabirhan W.Giorgis 3

 Introduction: Why interest in the subject?

1. They are major features of the business world;

2. Institutional(legal) strategies like mergers are strategic options
that firms can consider as an instrument to enhance their
performance. Mergers alter structure of markets
3. Issues:
 Physical Integration:
 What are the varieties of mergers and the diversity of participants in
the process?
• What are the causes, motives and consequences for
mergers?
• What alternative theories and perspectives do we have on
mergers?
 Clustering and Networking
• What are the causes and motives for networking &
21/04/2024 clustering? Tsegabirhan W.Giorgis 4
 Ethiopian Banking Sector

No. of Branches as of 2nd quarter of 2008/09 Capital as of 2nd

(n number) quarter of 2008/09

Banks/ Regional Addis Total (in Share of

Insurance Number urban Ababa number of % share Million capital
of banks centers (AA) branches from total Birr) from total

Public
commerci
al & A dvt
bank 3 206 62 268 44.97 6,699 63.79

Private
commerci
al banks 10 158 170 328 55.03 3,803 36.21

Grand
banking
sector 364 232 596 100 10,502 100

21/04/2024 Tsegabirhan W.Giorgis 5

 Mergers
1. Def. A merger is the formation of a new
company from the fusion of two (or more)
former companies.
2. Classifications of Mergers; Different
classifications. We pick one:
a. Horizontal mergers occur between members of
the same industry;
b. Vertical mergers take place between firms, which
engage in successive stages of production. Both
upstream (backward) or downstream (forward)
are possible.
21/04/2024 Tsegabirhan W.Giorgis 6
 Mergers (ctd)
c. Diversifying merger is that takes place
between firms in unrelated industries.
 Concentric merger: Where the two merging
enterprises share customers, technology or some
other asset,
 Conglomerate merger: no apparent link exist. It is
the combination, by acquisition or merger, of two
or more firms that are involved in different
product areas.

21/04/2024 Tsegabirhan W.Giorgis 7

 Why mergers?
1. Economies of scale: Efficiency Gain justified by
high fixed costs which may be:
Costly;
Indivisible(lumpy).
Fungible (that can be used for alternative purposes)
• Such assets can be in the form of
a. Plant’s equipment;
b. Distribution networks;
c. R&D programs;
d. Brand names

21/04/2024 Tsegabirhan W.Giorgis 8

 Why mergers? (Ctd.)

2. Management Performance: Merger as the

Outcome of ‘Market of Corporate Control’:
Efficiency gain
Argument: The existence of market for corporate
control can lead to efficiency gain through
mergers.
The existence of ‘market for corporate control’
may lead to hostile take-over. Managers
(both incumbent and raider managers) engage
in competition for the control of companies.
Competition leads to efficiency.
21/04/2024 Tsegabirhan W.Giorgis 9
 Why mergers? ctd

• Short Termism: Critics over efficiency gain of

mergers through competition in market for
managerial labor;
• Mergers (or simply the threat of mergers) force
managers to maintain profits and dividends in the
short run for the sake of bolstering share values.
– The Financial crises that emanates from lose credit management
in the Real Estate industry; management failed to be risk
sensitive. Credit crunch leading to financial melt down which
ended in economic recession.
– Ethiopian textile hired management contract. Immediately the
contracted management started to dispose finished goods
inventory at lower prices. In the short run sales increased. But
this led to overall price fall down following price wars among
textile factories.

21/04/2024 Tsegabirhan W.Giorgis 10

 Why Mergers? Ctd.

3. Market Power:
 mergers increase concentration, which is a gain market power
4. Tax management
if a profitable and loser companies merge, they can save
the tax payment of the profitable company. Lose is never
taxable.

If Mugher is making a profit of 100 billion and D.D is

making 100 billion loss. Before mergers Mugher may have
to pay 35% of total taxable profit, which is 35billion. If
merged taxable profit of the new merged company would
be zero. A merger has saved about 35billion of tax
obligation.
21/04/2024 Tsegabirhan W.Giorgis 11
 Business & Technology Strategy around Mergers &
Acquisitions (M & A)
• Recent investigations on the Japanese experience of IoT
evolution, clearly indicate that some kinds of
mergers/acquisitions are necessary and effective for
the realization of the Fourth Industrial Revolution, both
at the level of system integrators and of module
suppliers, respectively. However, the conventional
wisdom on M&A, in which the priority is placed on
short-term profit making, such as the elimination of
unprofitable parts of a business, is irrelevant and
obsolete. An intensive and broad-based study is
necessary about the best ways of conducting M&A to
realize the ideal of the Fourth Industrial Revolution.
(Lee, et al. 2018, p.18)
7/20/2021 12
 Subcontracting, Networking & Clustering
• Economies of scale can be unintended/incidental/ outcome or
consciously pursued objective.
• The unintended economies of scale is something that may
be attributed to the nature of the technology in the industry.
So you don't have to think in terms of economies of scale.
• Consciously pursued economies of scale can be attained
through a joint action of firms (Cooperation, & evolved social
capital). It can happen when individual firms cooperate or a
group of firms join in business associations, creating
producer consortia.
• So collective efficiency can be defined as the competitive
advantage derived from local external economies and joint
action.
21/04/2024 Tsegabirhan W.Giorgis 13
 Sub contracting
• Traditional sub contracting: unequal
relationship, patronizing relation between the
big and small, ending in unequal relationship.
• Modern sub contracting: relationship among
two equal business partners
• Three types of sub contracting:
a. Capacity Sub Contracting (CSC);
b. Specialization (Complementary) sub contracting,
c. Supplier Sub Contracting;

21/04/2024 Tsegabirhan W.Giorgis 14

 Capacity Sub Contracting (CSC).
• It is also referred to as horizontal
disintegration of production or ‘horizontal
subcontracting’.
a. Capacity limit in parent company forces to let
part of its needs be produced by another firm
(sub contractor).
b. The parent firm gives detailed plans &
specifications to the satellite firm (sub
contractor). This could happen due to excess
demand for the products produced by the
parent firm.
21/04/2024 Tsegabirhan W.Giorgis 15
 Specialization and Supplier Sub Contracting

• Specialization is also referred to as a Vertical

Disintegration (Complementary) of
production.
• Supplier Sub Contracting similar to
specialization sub contracting but the sub
contractor is an independent supplier with
full control over the development, design &
the method of production but willing to enter
a sub contracting arrangement to supply a
dedicated or licensed part to the parent firm.

21/04/2024 Tsegabirhan W.Giorgis 16

 Reflection Question
• Compare and Contrast the above three forms
of subcontracting with the three forms of
mergers.

21/04/2024 Tsegabirhan W.Giorgis 17

 Clustering
• Def. a Cluster is defined as a sectoral and
geographical concentration of enterprises.
However, note that the core idea is not in the
geographical proximity of the location of firms
rather it is the social relationship that exists
among firms that matters. The geographical
location is considered as an opportunity to
establish social capital among members of the
cluster.
• Different forms of association: sharing same
utilities, sub contracting among each other,
common investmentTsegabirhan
21/04/2024 (training
W.Giorgis facilities), etc. 18
 Cluster cases/Examples/

• The footwear industry in Brazil (Sinoy Valley),

Italy & Mexico, the garment industry in South
India & Bangladesh, and the auto-parts and
surgical instruments industry in Pakistan are some
examples. These are clusters of small and medium
firms that are spatially concentrated and specialized
in specific industries. In these networks suppliers
provide specialized inputs to several buyers selling
related but different products and buyers have more
than one supplier for the same input.

21/04/2024 Tsegabirhan W.Giorgis 19

 Eg. Clustering (ctd)
• Micro and small shoes producers in Merkato,
withstood Chinese imports in the 1990s, while
the medium & large producers were driven out
• Berbere Tera, Min Alesh Tera, Hager Libse
Tera in Shiro Meda
• Chinese students in American & European
universities who buy books for their country
and help each other.

21/04/2024 Tsegabirhan W.Giorgis 20

 Networking
• Networks refers to a group of firms that co-
operate on a joint development project-
complementing each other and specializing
in order to overcome common problems,
achieve collective efficiency and conquer
markets beyond their individual reach.
• Networking is all about cooperation among
firms, mutual learning and collective
innovation. Networking is not necessarily
tied to being in the same locality and can still
lead to collective efficiency.
21/04/2024 Tsegabirhan W.Giorgis 21
 Ctd Networking
• Group of firms simultaneously cooperating and
competing within a complex web of supporting
institutions.
• The network internalizes externalities created by this
relationship. That is the network attains an advantage of
economies of scale and/or scope.
• Networking presupposes sub contracting but it does not
entail dependency relationship between sub contracting
firms after all firms could all be small.
• The requirement for network to work is that the firms
should have a certain level of capability to interact with
each other. So it is not just cultural issue, it is amenable
to policy intervention, in terms of creating capacity
towards networking & clusters.
21/04/2024 Tsegabirhan W.Giorgis 22
Benefits Derived from Supply Relationships among Firms: Networking, Clustering, Sub-contracting

• All SMEs share common problems. So they are in

the best position to help each other through
horizontal cooperation (collectively achieving scale
economies), vertical cooperation (specialize in
their core activities & develop external division of
labor) and networking among enterprises,
providers of business Development services and
local policy makers.
• Advantage: Networking and clustering bring about
both static gains such as availability of inputs and
dynamic gains such as the fast spread of new
ideas of how to innovate.
21/04/2024 Tsegabirhan W.Giorgis 23
 Static Benefits
• Attract global buyers; Networking and clustering
helps firms to specialize as a group and have
large collective capacity to deliver to bigger
markets, both domestic and export markets.
• It attracts suppliers / sellers, which generates
economies of scale in purchasing and
procurement
• It facilitates investment in infrastructure:
physical infrastructure, training infrastructure or
running joint programs.
21/04/2024 Tsegabirhan W.Giorgis 24
 Ctd. Static Benefits
• It facilitates the creation of associations,
which are instrumental for joint negotiation
with governments and other parties that
affect their interests;
• It generates a pool of specialized workers. It
creates specialized labor market: sector-
specific skills.
• Favors the emergence of specialized services
in technical, financial and accounting matters.

21/04/2024 Tsegabirhan W.Giorgis 25

 Dynamic benefits
• Technology dissemination: It is a means of
easy dissemination of technologies and
knowledge and hence a means to fast learning
in the development process.
• So the dichotomy between large /parent/
firm & small/sub contractor/ firm is not valid.
Non-market mediated interactions between
firms should also be taken in to account in
designing and implementing economic
policies.

21/04/2024 Tsegabirhan W.Giorgis 26

 Why Clustering Policy?

• SMEs constitute about 99.9% of the total number of

registered enterprises.
• We have only few medium & large firms. The large firms
in our context are small in the context of global
competition.
• So what to do? Wait till the large firms get big in number
or do something with the small to transform them into
competitive producers, exporters, innovators?
• All the virtues of SMEs: Employment, output, etc
• Exports originating from SMEs remains marginal, hence
not competitive
• Innovation capacity of SMEs is very limited & hence not
competitive
21/04/2024 Tsegabirhan W.Giorgis 27
 Successful Clustering Policy:
1. shared and understood vision, clear and
consistent priorities, implementation tools
and effective management
a. How to design policies that help regions to
implement such processes in environments with
varying social, demographic, cultural and
governmental settings?
b. How to turn cluster framework into specific
policy programes and instruments?

21/04/2024 Tsegabirhan W.Giorgis 28

 Support to Promote Clusters

1. Strategic level Policy level

to provide a general environment conducive to the
development of clusters
2. Operational level Cluster initiative
to provide clusters with the specific and adapted
support they need for their development

21/04/2024 Tsegabirhan W.Giorgis 29

 Success Story of Medical Valley Cluster - 1
• Cluster development is all about starting joint activities in order to
achieve synergies.
• The development of a cluster is never the same and can hardly be
planned. A variety of factors influence why clusters develop more
successfully in some regions than elsewhere – not least of all, it is
often the case that determines where the journey takes us.
• It is difficult to depict the ideal typical development process of a
cluster development in reality using a common cookbook. Hurdles
often occur that can lead to setbacks in development, both internally
and externally – be it industry-specific economic downturns,
insufficient financing possibilities for cluster development or
personnel upheavals in cluster management.
• The following case study shows the ups and downs of Medical Valley
Hechingen, especially with which approach and levers an almost
failed cluster became a leading cluster in the field of medical implant
technology. (Krasniqi, Sedlmayr & Koecker; 2020, p.13)
21/04/2024 Tsegabirhan W.Giorgis 30
 Clusters – Different Stakeholders

21/04/2024 Tsegabirhan W.Giorgis 31

 Success Story of Medical Valley Cluster - 2
• Situation in the beginning:
• Following the decline of the textile industry, The city of Hechingen was faced with great
challenges in the 1970s.
• Huge job loss in the city.
• Prosperity threatened to dwindle.
• By chance, in the midst of this industrial decline, a Swedish entrepreneur suddenly appeared
in 1973 and settled in Hechingen with his large medical technology company Gambro.
• in Hechingen, this was taken as an opportunity to attract other medical technology
companies, with success, because for some companies from outside it seemed quite
attractive to settle in the area around the "anchor" Gambro. Medical technology gradually
replaced the traditional textile industry and became the leading industry in region around
Hechingen. As chance would have it, the latter in turn served as an important breeding
ground and know-how base for the manufacture of fibre-based medical technology products
such as dialyzers.
• In addition to new companies settling in the region, spin-offs with their own products from
existing medical tech-nology companies were established, thus further expanding the
medical technology location in Hechingen. In the course of time, a differentiated cluster was
formed, which is particularly characterised by a large variety of products. In contrast to many
comparable clusters, there is still no serious competition in the Neckar-Alb region – an
important prerequisite for cooperation between companies. (Krasniqi, Sedlmayr & Koecker;
2020, p.13)
21/04/2024 Tsegabirhan W.Giorgis 32
 Success Story of Medical Valley Cluster - 3
• Since its establishment in the early 1970s, 50 years is a success
indicator.
• Over time, requirements for medical technology products have
become more and more stringent over the years, resulting in
significantly higher costs and personnel expenses.
• Some companies were no longer able to operate profitably, they had
to close their site in Hechingen. Others moved away and relocated
abroad, where production could be carried out more cost-effectively.
In addition, the situation in rural areas has always been an additional
factor. For many companies, attracting well-trained scientific
personnel to the region was and is certainly not a trivial task. In
addition, Hechingen has never had a lavish teaching and research
infrastructure compared to some large conurbations. Knowledge and
technology transfer within the region was therefore always limited.
Despite everything, these challenges were successfully mastered.
(Krasniqi, Sedlmayr & Koecker; 2020, p.13)
21/04/2024 Tsegabirhan W.Giorgis 33
 Success Story of Medical Valley Cluster - 4
• Lessons Learned: Success factors for sustainable cluster
development :
• A leading personality (instigator) : it takes a personality to act as a
driver and initiator.
• Long-term solid financing always forms the basis . sustainable
financing is certainly the be-all and end-all, the basis of all action.
Without a sufficient budget, there can be no professional
management and without this, there can be no sensible
coordination and further development of projects and offers.
• Cluster management needs passionate, intelligent and
experienced minds. Driving a cluster initiative forward is not
something you can do on the side. If possible, cluster management
should be exercised full-time, in order to have the opportunity to
maintain existing structures and activities. (Krasniqi, Sedlmayr &
Koecker; 2020, p.15)
21/04/2024 Tsegabirhan W.Giorgis 34
 Success Story of Medical Valley Cluster - 5
• Lessons Learned:
1. Future-oriented cluster development is not possible without strategy.
Exchange and networking is not an end in itself and every actor should
be able to benefit from it in the long term. vision and clear objectives
are required. Comprehensive transformation processes affect almost
all sectors and place ever new demands on the cluster players.
2. Networking must take place within and outside the cluster initiative.
Rapid processes of change require cluster initiatives to bring in ever
new, more diverse competencies and to combine these with each
other according to the needs of the cluster. This requires the
integration of different partners within and outside the cluster
initiative. Multilateral links, for example to other cluster initiatives and
competence networks, to intermediary players in regional
development, to policymakers and to higher education and research
institutions, can create synergies. (Krasniqi, Sedlmayr & Koecker;
2020, p.15)

21/04/2024 Tsegabirhan W.Giorgis 35

 Success Story of Medical Valley Cluster - 6
• Lessons Learned:
1. The aim of the cluster management is to continuously develop
the network in this way with new impulses, to diversify
competences and thus make the cluster initiative fit for the
future.
2. In contrast to the past, the cluster is no longer just home to pure
medical technology companies. In the meantime, service
providers and suppliers have also settled here, which are
constantly expanding the competence and value creation
spectrum of Medical Valley Hechingen.
3. In addition to new start-ups and company settlements, new
training opportunities in the companies will also be sought in
the future. Thus, additional competencies are to be established
and expanded, which are increasingly in demand in view of a
changing industry. (Krasniqi, Sedlmayr & Koecker; 2020, p.16)
21/04/2024 Tsegabirhan W.Giorgis 36
 Five Success Factors for Cluster Initiative (CI) Management

Success Description
Factor
Idea A well-defined idea identifies what needs the CI satisfies, who is
the target group, and which resources ought to be available to
members.
Driving forces Key motivated individuals in the CI with the ability to inspire
and commitment members and facilitate activities and networking.
Activities Organization of activities that make it advantageous to be a
member of the CI and that complement other activities going on
in the cluster.
Critical mass A sufficient number of active members for meaningful and
valuable exchange to occur.
Organization Skilful performance of the coordinating role that ensures access
to a wide range of resources in the everyday running of the CI.
(Source: Klofsten, et al. 2015, p.68)

21/04/2024 Tsegabirhan W.Giorgis 37

 UNIDO Approach to Cluster Development
• The prime concern of UNIDO is pro-poor growth through private sector
development, defined as an inclusive growth approach.
• The pro-poor growth potential of cluster development resides not just in its
capacity to stimulate high rates of growth, but also in the conducive
environment it provides for the promotion of broad-based and inclusive forms of
development.
• Clusters constitute socio-economic systems where the population of enterprises
often overlaps with the communities living and working within a specific area or
territory.
• Cluster-based entrepreneurs and workers often share a similar social, cultural
and political background and practice reciprocity and self-help.
• The rationale behind this approach rests in that joint actions allow cluster
stakeholders to overcome limitations and reap opportunities that are beyond
their individual reach.
• Bottlenecks that constrain the growth of small-scale business are thereby
removed, triggering performance improvements under economic, social and
environmental aspects. A performing private sector will turn into an engine of
growth in the local economy, thus generating benefits and opportunities of
participation for the poor. (UNIDO; 2013, p.7)
21/04/2024 Tsegabirhan W.Giorgis 38
 UNIDO Approach to Cluster Development
• Cluster as a critical mass of enterprises located in
geographical proximity to each other. There is no
universally accepted way of establishing the
exact boundaries of a cluster. What is perceived
as close in one location may represent an
insurmountable distance in others; distance can
be influenced by the availability of transport
facilities, as well as by cultural identity and social
values. Moreover, the number of enterprises
necessary to be considered as constituting a
cluster can vary depending on the size of a
country. (UNIDO; 2013, p.9)
21/04/2024 Tsegabirhan W.Giorgis 39
 Common Features of Clusters
• First, they may use the same suppliers of raw
materials and other inputs, especially when they are
active in the same industrial sector.
• Second, they may cater to the same markets and
clients (e.g. the local handicraft market), even when
producing different goods.
• Finally, all enterprises share the same territory, its
infrastructure, services and, in many cases, a
common cultural identity. Enterprises within a cluster
also often face common obstacles and challenges
including, for example, a lack of infrastructure or
limited access to capital. (UNIDO; 2013, p.9)
21/04/2024 Tsegabirhan W.Giorgis 40
 Clusters Include Support Institutions

1. Business associations;
2. Business development service (BDS)
providers;
3. Financial service providers, including banks;
4. Public authorities such as local, regional and
national governments and regulatory
agencies;
5. Training agencies such as vocational schools,
universities, etc. (UNIDO; 2013, p.9)

21/04/2024 Tsegabirhan W.Giorgis 41

 Key Principles in Cluster Development (UNIDO Approach)

1. Focus on existing clusters, rather than creating new

ones.
2. Promote private sector based, pro-poor growth
3. Encourage collective efficiency through joint actions
4. Strengthen cluster governance mechanisms
5. The aim is to build a ‘Virtuous Cycle’ : Social Capital
(Trust, shared values, networks), Governance (Resilient
joint planning & coordination capacity), Economic
Performance (Increasing productivity & exports,
adaptation to changing market requirements) and
Joint Actions ( Trust-based contractual arrangements,
joint purchasing initiatives, establishment of
associations) (UNIDO; 2013, p.14)
21/04/2024 Tsegabirhan W.Giorgis 42
 Industrial Clusters
• Industry clusters—groups of firms that gain a competitive advantage
through local proximity and interdependence — offer a compelling
framework for local and state leaders to analyze and support their
economies.
• Firms and regions benefit from clustering.
• But there are glaring gaps between the recognition that clusters
play an important role in an economy that demands concentration
and specialization and the practical ability to develop initiatives that
help firms within clusters become more competitive and spur
growth.
• Agglomeration helps firms be more productive through three
mechanisms: sharing tailored facilities, infrastructure, and suppliers;
matching workers productively through deep labor markets; and
learning through dense, knowledge-rich environments that facilitate
knowledge exchange and innovation between interdependent
firms. (Donahue, Parilla, & McDearman, 2018, p.2)
21/04/2024 Tsegabirhan W.Giorgis 43
 Traditional Ethiopian Socio-Economic Institutions

• Equob
• Idir
• Debo
• Geda Governance system in certain pockets in Oromia
(e.g. Borona) and probably in other regions as well.
• Probably more in every culture.
• In view of such long standing and widely practiced
collective initiatives that show the existence of strong
social capital, do you see that one can use such social
capital for other economic activities as well?

21/04/2024 Tsegabirhan W.Giorgis 44

 Issues for Reflections
• Can Ethiopia benefit from clustering &
networking? Yes or no? why or What are the
prospects and constraints for networking and
clustering in Ethiopia?
• What should be done to develop networking
and clustering in Ethiopia?
• How do you compare and contrast mergers
and networking relationship?

21/04/2024 Tsegabirhan W.Giorgis 45

 Assignment Three
• Can Ethiopia’s small and micro enterprises be exporters? Why?
• Hint: Everyone of you needs to recognize that let alone
Ethiopian small and micro enterprises, the large Ethiopian
enterprises are facing challenges to enter into the export
business.
1. Consider the underlying ideas of ‘zero-sum game’
(competition) and ‘positive-sum game’ (cooperation) as the
foundations for nurturing the necessary mindset to see the
possibility of SMEs becoming exporters.
2. Consider the institutional strategies, especially clustering and
networking as mechanisms to develop joint export
capabilities.
3. You may consider traditional socio-economic institutional
capital (Social capital) to strengthen your line of argument.
21/04/2024 Tsegabirhan W.Giorgis 46
 Thank You

21/04/2024 Tsegabirhan W.Giorgis 47