Are There Difference in How Firms Cooperate? Evidence from Three Leather Industrial Clusters in Nigeria

Abstract

Inter-firm collaboration is at the heart of industrial cluster development. Through the cooperation of businesses, industrial clusters boost a region's production and competitiveness. Previous studies have argued that factors like location, culture, firm size and age influences how firms in different industries cooperate. This study was carried out to investigate if there are differences in the effects of proximity on inter-firm cooperation in selected leather industrial clusters in Abia, Lagos and Kano states respectively. A survey research design was used for the study. The MSMEs in Nigeria make up the study's target population. Using a two-stage sampling method, the MSMEs in the leather industry clusters in the states of Lagos, Abia, and Kano were specifically chosen for the study. The 412 owners/managers of MSMEs in the leather industry clusters in the cities of Lagos, Aba, and Kano were chosen using the snowballing sampling approach. This makes up the study's sample size. They were given a standardised questionnaire to complete. Descriptive (means, percentages and frequencies) (means, percentages and frequencies) and inferential (Chi-square ( 2) test of significance and ANOVA) statistics were used to analyse the data collected. The findings revealed that there are significant differences in how firms in the same industry and cluster cooperate, and there are differences in how firms in the same industry but different clusters cooperate. This study recommends that policies be formulated that will encourage each cluster to engage in activities that will complement its area of specialisation.