Dynamic Knowledge Model for Cluster Development

N. Chakpitak

&

A. Tamprasirt, T. Chandarasupsang, N. Harnpornchai

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.

CAMTCAMT

C

Competitiveness Is…

Intersection of Public Policy and Commercial Strategy

The Early Competitiveness Theories

Threat of New Entry

Rivalry Among Existing Competitors

Bargaining Powerof Customers

Threat of Substitutes

Bargaining Powerof Suppliers

• Economies of scale• Proprietary product

differences• Brand identity• Switching costs

• Capital requirements• Access to distribution• Absolute cost advantages• Government policy• Expected retaliation

• Relative price performance of substitutes• Switching costs• Buyer propensity to substitute

• 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

• 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

• 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

Porter’s Five ForcesPorter’s Five Forces

Source: Michael E. Porter, Competitive Advantage (New York: Free Press, 1985)

The Five Competitive ForcesThe Five Competitive Forces

Force Entry

Rivalry

Substitutes

Buyers

Suppliers

Erecting barriers (isolating mechanisms) create exploit economies of scale, aggressive deterrence, design in switching costs, etc.

Compete on nonprice dimensions: cost leadership, differentiation, cooperation, etc.

Improve attractiveness compared to substitutes: better service, more features, etc..

Reduce buyer uniqueness: forward integrate, differentiate product, new customers, etc..

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 ChronologyDevelopment 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

Porter’s Diamond Model – The Micro

Learning Strategy for Cluster Development

Enright’s Meso Model

Sufficiency Economy Model5 Force 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

SECI and Cyafin Frameworks

Dialogue

Learning byDoing

LinkingExplicitKnowledge

FieldBuilding

Socialization Externalization

Internalization Combination

Tacit Tacit

Tac

itT

aci

t

Explicit Explicit

Ex

plicit

Exp

licit

Research Procedures

Cluster Pilot: NorthCluster Pilot: North

Cluster Pilot: WestCluster Pilot: West

Cluster Pilot: EastCluster Pilot: East

Cluster: Mae KlongCluster: Mae Klong

CDA ProgramCDA Program

Data MappingData Mapping

+

GIS system GIS system

Data from NESDB / KenanData from NESDB / Kenan

public

Community of Practice (COP)Community of Practice (COP)

‘show cases’

Cluster KnowledgeCluster Knowledge

Experiment/Test Bed

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

CompetitiveCompetitive

Competitvness

MesoMeso

5 Force5 Force

DiamondDiamond

MethodologyMethodology

MobilizationMobilization

DiagnosisDiagnosis

StrategyStrategy

BenchMarkingBenchMarking

AdvantageModel

AdvantageModel

ComparativeComparative

Supporting Facility

Supporting Facility

LocationLocation FirmFirm

SubRegionSubRegion

NationalNational

ReginalReginal

ClusterCluster

Government Policies

Government Policies

Institutionsupport

Institutionsupport

UpgradeInforstrucure

UpgradeInforstrucure

InnovationInnovation

MarketMarket

ProductProduct

ProcessProcess

NatureNature

Cluster Pilot: NorthCluster Pilot: North

Cluster Pilot: WestCluster Pilot: West

Cluster Pilot: EastCluster Pilot: East

Cluster: Mae KlongCluster: Mae Klong

Success Cases Ontology

Learning Strategy (Suitable for Thai Context)

KMS for CDAKMS for CDA

Future Implication

Open Source InitiativesOpen Source Initiatives

Poverty Reduction Initiatives

Poverty Reduction Initiatives