The Formation of Food Cluster in Indonesia

¹ Institut Teknologi Bandung, School of Business and Management, Bandung, Indonesia
² Institut Teknologi Bandung, School of Life Sciences and Technology, Bandung, Indonesia

^* Corresponding author: sri.herliana@sbm-itb.ac.id

Abstract

Cluster has an important role in developing the existing resources in an area to be economic value. Companies gain competitive advantage through competing with each other. However, there is now an increased awareness that to ensure survival, it is necessary to balance industrial advocacy and personal interests. Thus, cluster operations are characterized by competition and cooperation, where the role of quadruple helix plays a role in it. SME clusters occur in every country, considering that SMEs are an important element in the economy of the country. Most SMEs in developing countries are located in industrial clusters. Despite the limitations in organizational resources and capacity, the grouping of companies in geographic proximity is capable of improving the performance of the companies within them. Therefore, cluster formation becomes the main attraction for deeper examination, how clusters are formed and how the process and role of elements in it. This study involves two different case studies of the chips and milk dairy clusters, both located in Cimahi, West Java. West Java is one of the provinces that have potential in the development of food and beverage clusters. This research uses qualitative data approach and supported by literature data support. From the analysis result, both clusters have different cluster forming approach, where the formation of clusters of chips, formed spreads and dairy cluster vertically.