Building Sustainable Business Clusters towards Global Competitiveness: Case Study of Furniture Making along Owode-Ajegunle Axis of Lagos State

Abstract

To countries like Brazil, Pakistan, India, China and many more, business clustering is not new as it has contributed a lot to their economic development. Agglomeration economies as it is otherwise called by some economists have been identified as one of the ways companies bring out innovative products. Because of its potential to affect competition by increasing business productivity, driving innovation and stimulating new businesses, business cluster is a useful tool to create global competitiveness. Currently at Owode-Ajegunle axis along Ikorodu road, Lagos, Nigeria, small uncoordinated groups of furniture makers can be seen producing their wares along both sides of a long stretch of the road. This paper therefore looks at the current position of this natural occurring, disorganized, identified cluster and what can be done for its improvement and sustainability. As a theoretical paper, theories, past works and experiences from other countries of the world will be explored to see how this proposed cluster can be properly established towards creating global competitiveness in this sector. The paper concludes that since industrial clusters have the capacity to rejuvenate local economies, provide competitiveness and create wealth, the formation of these small roadside enterprises into an organized business cluster will significantly improve efficiency, innovation and quality of products in the furniture industry and that the concerned Government institutions, agencies and parastatals must make collaborative effort by creating a synergy among the enterprises of the identified cluster, towards its sustainability for increased global standards.

Keywords: Business cluster, Global competitiveness, Furniture