Industrial clustering requires members’ trust

BANGKOK, 26 January 2010 (NNT) – A scholar pointed out that industrial cluster development could strengthen Thai industrial competitiveness, but to achieve that, trust among members is a pre-requisite.

Assoc Prof Chaiyos Santiwong of faculty of business administration, Chiang Mai University, said that industrial cluster has played a much more important role now when every business sector depends mostly on productivity and innovation to survive.

Mr Chaiyos claimed that the sluggish process of Thai industrial clustering is due to lack of trust. Trust is at heart of clustering where every member is required to willingly share and exchange knowledge and information. This can reduce an industry’s weaknesses and increase strengths.

The expert explained that sufficient and constant communication was a tool to create trust among members in a club. All members should realize that clustering comprises of many other processes such as innovation and technology exchange or HR training, and not just only boosting sales numbers.

Mr Kriangkrai Tiannukul, Chairman of Printing and Paper Packaging Industry Club, the Federation of Thai Industries, mentioned that because of clustering, his industry could increase exports from 200 million baht/year to 30,000 million baht/year.

In 2001, the Printing and Paper Packaging Industry Club set ambitious goals to boost exports, overtake Singapore, and become No.1 in ASEAN.

Mr Kriangkrai elaborated that behavior of the club’s committee could identify if trust could be built among members. He said that it was not impossible that everyone was 100% agreed with the leaders, but they should show sacrifice and not take advantages from clustering beforehand. This is the only way to strengthen the industry’s competitiveness in a sustainable manner.