Date Added: May 2013
SMEs-clustering has been of considerable interest over the last decade and is associated with regional development. The Australian government advocates the formation of SMEs cluster thereby encouraging SMEs to achieve competitive advantage through globalization. However, the notion of SMEs clusters involves some issues in terms of its adoption by SMEs. Firstly, most academic research shows that SMEs cluster has been treated as a phenomenon in the economy and that its foundation lacks a theoretical perspective. Secondly, there is a lack of understanding of SME clusters in general. Much of the literature on SMEs and clusters has primarily addressed the benefit of industrial clusters; however, the process of how SMEs adopt clusters is given less attention.