Aboriginal perspectives of enterprise clustering

Dr. Damien Jacobsen

Principal Research LeaderAboriginal and Torres Strait Islander Tourism Product ProjectCooperative Research Centre for Remote Economic ParticipationSouthern Cross University, Australia

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What is enterprise clustering?

Clusters are ‘geographic concentrations of interconnected companies, specialised suppliers, service providers, firms in related industries, and associated institutions in particular fields that compete, but also co-operate’ Porter (1998, p. 197-8).

Participants are often located in the same geographical region and interrelated by characteristics (e.g. the landscape) or specialities.

Clusters come in all shapes and sizes

Creates value chain opportunities, as well as a range of benefit potential highlighted in the literature(see Michael 2003; Lade 2010; Ffowcs-Williams 2012).

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Common features of strong enterprise clusters

Culture of creativity, innovation and co-

opetition

Commitment to building

knowledge

Support from government and other agencies

Benefits to large and small

enterprises

Geographical proximity

Diverse links to wider industry

Skilled cluster participants Specialisation

Ability to adapt to new

technology/ways of doing business

Knowledge exchange through

personal interaction

Face to face interaction

Collaboration with other clusters

‘Bread and butter’ market

Strong communication Access to finance

Manager/leadership

Strong ‘brand’ attracting

customers, investors etc.

Physical infrastructure  

Source: Ffowcs-Williams (2012, pp.34-38)

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Cluster-style approach developed or proposed around Australia, including: far north Queensland; Arnhem Land (Northern Territory); the Fitzroy River region (Western Australia); the Dampier Peninsula (Western Australia); Central Australia (Northern Territory); the Darwin region (Northern Territory); and, Outback New South Wales.

Previous study: Central Australia, applied Porter clustering approach but failed and conceded that the model ‘…needs much more explanation and possibly considerable modification…’ for use by Aboriginal tourism operators (Schmiechen, James & Tremblay 2010, p. 35).

Background – why Aboriginal perspectives of clustering?

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Reconceptualise Western concepts of enterprise clustering according to the worldviews and cultural perspectives of Aboriginal and Torres Strait Islander

people involved in tourism

Purpose of the study

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Decolonising research approach:Transformative – generate

emancipative possibilitiesCultural protocolPrivilege Aboriginal voice and expertiseAboriginal-ledOutcome review & approvals

(including photographs/video)Applied outputs

Qualitative focus group: dialogue and critical engagement with business practices

Participants: expert informants (demonstrated experience in cluster-style tourism)Analysis: Qualitative themes

Design

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October 2014: hosted on Nykina country - Kimberley, Western Australia.Day 1 – discuss western enterprise clustering concepts - Ffowcs-Williams (2012). Group work – brainstorm Aboriginal enterprise clustering perspectivesDay 2: Participants reduce 141 issues/perspectives to 44

Aboriginal Tourism Enterprise Clustering Forum

Image adapted from: http://www.kimberleyaustralia.com/gibb-river-road-map.html

Forum venue

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Coequal Enterprise Community

 Structured Grass Roots 

Representation

Localised Domain of Trade

Tourism System Linkages

Funding for Capacity

CentralisedCluster 

Management

Culturally Grounded Objectives

Fusion of Cultural Diversity

Cluster Planning and Development

Culturally Fluent Business 

Communication

Culturally Appropriate Governance

Aboriginal and Torres Strait Islander principles of enterprise clustering

Fusion of Cultural Diversity

The cultural diversity of Aboriginal and

Torres Strait Islander people provides

strength to business, as well as value to the

products and experiences offered to

visitors.

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Correspondence with Ffowcs-Williams (2012)

Principle Corresponding features identified by Ffowcs-Williams (2012)

Structured Grass Roots Representation

n/a

Coequal Enterprise Community Knowledge exchange through personal interaction   

Benefits to large and small enterprises    Commitment to building knowledge

Culturally Fluent Business Communication

Strong communication 

Culturally Grounded Objectives n/a

Localised Domain of Trade Strong ‘brand’ attracting customers, investors etc.

Culture of creativity, innovation and co-opetition

Tourism System Linkages Diverse links to wider industry   Collaboration with other clusters

Fusion of Cultural Diversity Specialisation

Culturally Appropriate Governance n/a

Centralised Cluster Management Manager/leadership

Funding Towards Capacity Access to finance

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Next steps

Further refinement

Applied contexts: Cape York, South Australia

Development kit

Value of clustering

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Potential for Aboriginal and Torres Strait Islander people

Form and maintain enterprise clusters in culturally appropriate ways

Small operators work/walk together to alleviate marginalisation

Create better products and experiences for visitors

Build repository of Aboriginal business know-how and learning

Stronger self-representation within industry and government

Increase self-reliance and implement regional approach to tourism

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Challenge view that culture inhibits business

Aboriginal and Torres Strait Islander people are business people, innovators, strategists pushing boundaries of knowledge and practice

Generate body of Aboriginal knowledge for the business of tourism

Move beyond deficit thinking

Empower Aboriginal and Torres Strait Islander people as drivers of tourism

Implications

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Thank you!Please visit: http://crc-rep.com/

Contact Details:Dr Damien JacobsenPhone: 02 6620 3042E-mail: damien.jacobsen@nintione.com.au

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References cited:

Ffowcs-Williams  I  (Ed).  2012.  Cluster Development: The Go-To Handbook: Building Competitiveness through Smart Specialisation. Cluster Navigators Limited: Nelson, New Zealand. 

Jacobsen, D., 2016. Tourism enterprises beyond the margins: the relational practices of Aboriginal and Torres Strait Islander SMEs in remote Australia. Tourism Planning & Development, pp.1-19.

Lade, C. 2010. Developing tourism clusters and networks: attitudes to competition along Australia’s Murray River. Tourism Analysis 15, pp. 649-661.

Michael, E. J. 2003. Tourism micro-clusters. Tourism Economics, 9(2), pp. 133–145.

Porter,  M.E.  1998.  ‘Clusters  and  competition:  New  agendas  for  companies,  governments,  and  institutions’  in  On Competition. in Porter, M. (Ed.). Harvard Business School Press. Boston. 

Schmallegger,  D.,  Carson,  D.  and  Tremblay,  P.  2010.  The  economic  geography  of  remote  tourism:  The  problem  of connection seeking. Tourism Analysis, 15 (1), pp. 127-139. 

Schmiechen,  J.,  James,  D.  &  Tremblay,  P.  2010.  Learning markets and indigenous tourism: action research pilot of a learning markets cluster in Central Australia. CRC for Sustainable Tourism Pty Ltd.