Successes and Challenges in Industrial Clusters: Some Empirical Evidence from Wood Industrial Cluster in Kumasi, Ghana

Abstract

This study examined some successes and challenges of a wood cluster in Kumasi, Ghana. A concurrent mixed method comprising survey, regression analysis, and correlation analysis were adopted to probe into how the effects of interconnections among firms in the cluster, the successes chalked and the challenges firms face in the cluster. Results showed significant (p < 0.001) interconnections among actors contributed to significant increase in productivity, sales and profit margins of the firms. Majority (93.4%) of respondents affirmed appreciable increases in sales and profit margins demonstrating that the cluster has been a major driver of economic growth. Permanent site for the artisans and other actors was the major benefit, provided by the cluster. However, lack of access to bank loans, timber, and waste management facility, promoting and marketing of products are some challenges associated with the cluster. Interventions from government and other agencies are required to create the enabling environment to attract investors that can help in addressing the challenges so as to stimulate growth of the wood and furniture enterprises in the cluster as they have greater potential for Ghana’s economic development