The Empirical Study on the Role of MSMEs Cluster to the Local Economic Development Ali Sk Estehera,*, Gopinath Perumulab aSenior Research Scholar, Tata Institute of Social Sciences, Mumbai, India bProfessor, Tata Institute of Social Sciences, Mumbai, India *Corresponding Author: esteher92@gmail.com
Online Published on 27 April, 2023. Abstract Purpose The present empirical study attempted to analyze various factors and stakeholders of the Liluah metal casting cluster and its impact on local economic development. In addition, we explained the role of COVID-19 in this MSMEs cluster. Design/Methodology/Approach To achieve the set of objectives, the research has used purposive sampling. The data were collected through structured questionnaires and in-depth interviews with firm owners. The primary data have been used and secondary data collected through various sources for the study. Findings Liluah metal casting cluster plays a crucial role in the local economy in terms of employment and business prospect. The study also found that the manufacturing units and annual turnover increased in the last two decades, and the number of laborers decreased rapidly. Despite the huge scope of improvement in the market, technology, skill training, etc., the present cluster is suffering from a lack of capital, the latest technology, skilled workers, pollution, and competition with foreign products. Further, possibilities of innovation practices in the cluster can be achieved as far as the development of the cluster is concerned. Research Limitations The study has several limitations. For instance, the study has analyzed the impact of the cluster on the local economic development based on the firm owners’ perspective and attempted to explain various challenges and prospects. Future, there is a need to integrate various stakeholders like laborers, government institutions, and intermediaries with other allied manufacturing sectors. The sample was selected only for the Howrah district’s Liluah metal casting cluster owners. Managerial Implications Practically, it highlighted the challenges and prospects of the present cluster. Therefore, the study suggested that innovation practices can be led to positive growth of the cluster where research and development can play an important role. Originality/Value The empirical study mainly focuses on the Liluah metal casting cluster of the Howrah district. The research paper is based on the Ph.D. thesis, and all the data and information mentioned here are original. Top Keywords Manufacturing Cluster, Metal Casting Cluster, Innovation, Inter-firm Linkages, COVID-19. Top |