Improving competetive power of fruit sector in Isparta through clustering approach

With its most simple and traditional definition clustering means a geographical agglomeration in a particular sector. The theoretical framework of clustering was shaped by Michael Eugene Porter's works in the 1990s and it still keeps its popularity in both academic and practical studies. While the studies before Porter approached to clustering only in terms of geographical agglomeration, Porter contributed with innovation and cooperation terms from the competition point of view. He also discussed importance of relationships between players and related institutions. The main purpose of this study was to evaluate practicability of the clustering approach in improving competitiveness of fruit sector in Isparta by using the Diamond Model developed by Porter in order to reveal national and sectoral competitiveness of a sector.For this purpose, the theoretical framework of the cluster approach was drawn, the current situation of the fruit sector which is an important economic activity in Isparta was put forward and sectors which are directly and/or indirectly related to the fruit sector were discussed respectively. The necessary data for the Diamond Model were gathered through face-to-face interviews with 47 large fruit producers and representatives of other related sectors. In addition to the Diamond Model, the collected data were used for conducting a SWOT analysis in which the advantages and disadvantages of the sector were determined. The outputs of SWOT analysis were used for a SOR analysis which identified strategies that should be implemented by the sector. The fruit growing sector in Isparta is a natural form of a heap in terms of clustering which has been developed thanks to the natural resources and it has contributed to development of related sectors and suppliers in the region. According to the results of the Diamond Model used in the study, technology using, sufficient infrastructure, sustainable input provision by regional suppliers, access to qualified workers, proper fruit varieties and quality product demanded in the international market, and considering consumers' expectations for selecting new varieties were advantages of the sector while the disadvantages were lack of specialized brainpower and enough qualified workers in farms, poor practice of cooperation with each other and with R&D institutions, and failure of training institutions to respond to the demands of the sector.In addition to these internal factors, there are external risks which particularly increase input costs, like natural disasters, oil-price shocks, fluctuations in the world financial markets. As a result, the fruit growing sector and its related sectors are located in the same geographic region thanks to the natural resources and inputs but has not been able to go beyond being a heap. This situation decreases competition chance of the sector. They have power to challenge with the risks but they need strategies which provides a guideline how to work in cooperation for training, consultancy, branding and identification a target, and a more quality product and services in order to attack. Although collaboration among the actors of the fruit sector in Isparta is very poor, they have an easy and sustainable communication. This communication and availability of compulsory actors for benefitting state supports towards clustering should be considered as an important advantage in order to transform the present natural heap to a cluster around the fruit growing sector and increase its regional competiveness power.