Clustering of Firms

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Abstract:
How urban firm or corporation clusters are geographically derived regarding the firms’ corporate culture? What are the dominant forces that drive this clustering of firms phenomenon?

To answer that questions, this research takes observation within office buildings in CBD and Non CBD areas that are considered as favourable business and economic centres in Jakarta. Through quantitative and qualitative analysis, this study found matching-process relation between corporate culture of firms from the same line of business and nationality groups with characteristics of location where their official domiciles were gathered together. Clustering phenomenon happens to be an outcome of this occupying process, where the same firms with the same characteristics will exploit the same advantages in the same location.

The quantitative analysis was divided into 2 research stages. The 1st stage investigated 854 firms from various lines of business and nationalities which occupy office buildings in CBD and Non CBD i.e South Jakarta area to identify whether there is any evidence of geographical clustering phenomenon using locational analysis models. In the 2nd stage, 37 samples of firms were then investigated to acknowledge their preferences on locational factors using multi discriminant analysis and similarity analysis, in order to identify similarity in each line of business’ and/or nationalities’ preferences in exploiting their locational advantages when be located together as cluster(s).

 

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This study was then being cross-checked to particular cluster of firm phenomenon in some precincts in CBD Jakarta, using qualitative spatial analysis to strengthen the previous quantitative fact findings.

From the result, it was identified that there is tendency that some group of firms to form clusters in CBD area. CBD area still has its incomparable values and advantages that attract and accommodate almost all kind of firms. Furthermore, it was identified that there are several patterns of clustering occurrence process that differ from one group of firms and another, regarding particular advantages orientation they are after.

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