Digital Cluster Organization Strategy Business & Marketing Research (Research Paper Sample)

EVALUATING DIGITAL CLUSTER ORGANIZATIONS STRATEGY AND PERFORMANCE
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Digital Clusters in a Competitive Market
Giblin (2011, p. 24) argues that digital clusters represent the most effective approaches through which companies create a competitive advantage and overcome the high level of rivalry within their market. This argument is reliable because it is supported by empirical evidence on winning business strategies within markets that are characterized by heightened competitiveness. Xm, Sx & Tam (2011, p. 362) agree with this argument by demonstrating that organizations employ the digital clusters strategy with a view of ensuring that their competitive moves, such as changing of prices are effective in driving their competitiveness within the market. On the same line of argument, Boja (2011, p. 185) reveals that companies operate within a specific digital cluster are able to improve the differentiation of their products and services, which makes them more competitive. This includes the improving of the features of products and implementing innovations by taking advantage of the vast production resources that are offered by other organizations within the same digital cluster. However, most of the reviewed research articles focus on the factors that define the success of a digital cluster. This includes the presence of digital networks, a strong base for innovation and the existence of human resource competencies and skills. These attributes are important in determining what makes digital cluster organizations effectively competitive within their markets.