Technology support from cluster development initiatives to SMEs : a study of motor spare parts enterprises in Sri Lanka

Abstract

Clusters identified as special type of agglomeration of small and medium scale enterprises (SMEs) activities in a specific geographical location with unique functional dimensions. Clusters give birth and legs to cluster development initiatives (CDls), as a strategy to promote and stimulate the growth of tlie SME sector by breaking the vicious cycle of the SME through collaborative advantage between firms and other SME related key stakeholders. In Sri Lanka, some SME clusters are observed in ad-hoc manner in different industrial sectors and different locations without proper policy coordination. This case study attempts to explore the applicability of a CDI for the SME clusters through Panchikawatle motor spare parts cluster which plays an important role in the Sri Lankan automobile sector. The methodology employed in this study includes interviews with key stakeholders, structured questionnaire survey with Panchikawalte motor spare parts SME executives and supplemented with comprehensive literature survey. The methodology employed, and findings and policies recommended can be used as guides to similar types of studies in other parts of the w-orld. It is an exploratory research.