Dynamic Knowledge Model
for Cluster Development
N. Chakpitak
&
A. Tamprasirt, T. Chandarasupsang,
N. Harnpornchai
C
ompetitiveness of the nations is an
economic development framework based on
the integration of macro and micro economy. It
is a way by which firms and government
should undertaken in order to be able
compete with globalization in the new
economy. Impacted Information, Productivity
and Innovation of the cluster are the main
success criteria.
CAMT
Competitiveness Is…
Intersection of Public Policy and
Commercial Strategy
The Early Competitiveness
Theories
Porter’s Five Forces
Threat of New Entry
Bargaining Power
of Suppliers
• Differentiation of inputs
• Switching costs
• Presence of substitute
inputs
• Supplier concentration
• Importance of volume to
supplier
• Cost relative to total
purchases
• Impact of inputs on cost or
differentiation
• Threat of forward
integration
• Economies of scale
• Proprietary product
differences
• Brand identity
• Switching costs
•
•
•
•
•
Capital requirements
Access to distribution
Absolute cost advantages
Government policy
Expected retaliation
Rivalry Among
Existing Competitors
• Industry growth
• Fixed costs / value
added
• Overcapacity
• Product differences
• Brand identity
•
•
•
•
•
•
Switching costs
Concentration and balance
Informational complexity
Diversity of competitors
Corporate stakes
Exit barriers
Threat of Substitutes
• Relative price performance of substitutes
• Switching costs
• Buyer propensity to substitute
Source: Michael E. Porter, Competitive Advantage (New York: Free Press, 1985)
Bargaining Power
of Customers
•
•
•
•
•
•
•
•
•
•
•
Buyer concentration
Buyer volume
Buyer switching costs
Buyer information
Ability to integrate
backward
Substitute products
Price / total purchases
Product differences
Brand identity
Impact of quality /
performance
Buyer profits
The Five Competitive Forces
Force
Entry
Erecting barriers (isolating
mechanisms) create exploit economies of scale,
aggressive deterrence, design in switching costs, etc.
Rivalry
Compete on nonprice dimensions:
cost leadership, differentiation, cooperation, etc.
Substitutes
Buyers
Improve attractiveness compared to
substitutes: better service, more features, etc..
Reduce buyer uniqueness: forward
integrate, differentiate product, new customers, etc..
Suppliers
Reduce supplier uniqueness: backward
integrate, obtain minority position, second source, etc..
Diamond Model
Cluster
New Competitiveness Directions
Extending of Competitiveness
Model
• Partial only for Developed Countries
• Misbalance of Contributing Factors
• Incomplete Analysis of Contributing
Factors.
• Misleading Competitiveness Measurement
Enright’s Meso Model
Development Chronology
• Competitiveness 1.0: First steps
–
–
–
–
Competitive Advantage of Nations
Focus on Industry level competitiveness
Focus on advanced industries
Focus on microeconomics
• Competitiveness 2.0: The cluster “recipe” Steps
–
–
–
–
–
–
Identify the clusters and potential clusters in a region
Fund universities and research institutes
Facilitate interaction among cluster members
Encourage private sector participation
Create cluster and competitiveness organizations
Provide support for innovation
• Competitiveness 3.0: The future of competitiveness
Integration of approaches
– Market/ private sector oriented approach
– Innovation systems approach
– Cluster approaches
Requirement of the New Models
Dynamic Vs Static Model
Dynamic Attribute in
Cluster Development
Learning Strategy for Cluster Development
Porter’s Diamond Model – The Micro
5 Force Model
Enright’s Meso Model
Sufficiency Economy Model
Methods and Methodology Statement
• Double Loop Learning (Strategic Learning)
• Analysis Cluster objectives with Competitiveness
and Cyafin Frameworks
• Capture Cluster objectives with CommonKADS
• Construct Knowledge Network Map Ontology with
Nonaka’s Bipolar learning method
Methodology Illustration
Double Loop Learning
Tacit
Tacit
Socialization
Externalization
Linking
Explicit
Knowledge
Internalization
Combination
Learning by
Doing
Explicit
Tacit
Field
Building
Explicit
Explicit
Tacit
Dialogue
Explicit
SECI and Cyafin Frameworks
Research Procedures
Experiment/Test Bed
Cluster Pilot:
North
Cluster Pilot: West
‘show
cases’
Cluster Pilot: East
Cluster: Mae
Klong
Community of
Practice (COP)
Cluster Knowledge
CDA Program
Data Mapping
GIS system
+
Data from NESDB / Kenan
public
Results and Analysis
Statement (Project/Thesis)
• A number of proposed solutions which
unique for each cluster.
• Examples: LannaAndaman (Northern
Ceramic Clusters), Circle of Trust
(Chantaburi Fruit Cluster)
Dynamic Knowledge Model for Cluster Development
Project Results
Lanna-Andaman
Conclusion Statement
• KNOC is a model can used as a platforms
for other social and economic Chronic
situations i.e. Poverty Reduction, Supply
Chain and etc.
• KM methodologies used can be applied to
various theoretical framework.
Knowledge Management for Chronic Situations
Implication of the model
Success Cases
Ontology
Cluster Pilot:
North
Future Implication
Meso
Meso
Competitive
Competitive
5 Force
5 Force
Diamond
Diamond
Comparative
Comparative
Advantage
Advantage
Model
Model
Mobilization
Mobilization
Diagnosis
Diagnosis
Methodology
Methodology
Competitvness
Strategy
Strategy
BenchMarking
BenchMarking
Cluster Pilot: West
KMS for CDA
Cluster
Cluster
Location
Location
Firm
Firm
SubRegion
SubRegion
Reginal
Reginal
Cluster Pilot: East
Supporting
Supporting
Facility
Facility
National
National
Government
Government
Policies
Policies
Institution
Institution
support
support
Innovation
Innovation
Cluster: Mae
Klong
Open Source
Initiatives
Upgrade
Upgrade
Inforstrucure
Inforstrucure
Product
Product
Process
Process
Market
Market
Nature
Nature
Learning Strategy
(Suitable for Thai Context)
Poverty
Reduction
Initiatives