DOES INDUSTRIAL CLUSTER INFLUENCE FIRMS’ GROWTH? EVIDENCE FROM OLUYOLE INDUSTRIAL ESTATE, IBADAN OYO STATE, NIGERIA

Abstract

“Industrial cluster has proven to be of great benefit to many multinational firms all over the world; allowing the actor firms around the cluster to benefit from wealth of knowledge and other positive spill overs in the cluster. The study examines the influences of industrial cluster in Oluyole Industrial Estate in Ibadan, Oyo state on the growth of firms located within the industrial area. A descriptive cross-sectional design is adopted in the study. The design is appropriate because the study involved collecting data from employees and operators of businesses operating within industrial clusters with a view to determining whether or not the industrial cluster has impact on business growth in the area. The population therefore would comprise all manufacturing company in the State but for this study, five have been purposively selected. A total of three hundred and fifty-eight (358) respondents were sampled in the selected areas using simple random sampling technique. The study revealed that fully developed infrastructure was a major factor contingent to the growth of business firms within industrial clusters in the study area (p-value < 0.05). The study concluded that industrial clustering has significant influence on business growth when measured with increase in customer base, increase in market share, and increase in turnover”.