Power and the Spirit of Clustering

Abstract

This paper utilizes the Scotch Whisky industry to identify an issue which is absent from the current literature on sector specific clusters namely the concept of power. It is argued that in order to understand the nature of power relationships within a cluster it is necessary to adopt a radical Coasian framework. The paper utilizes a typical Structure-conduct-performance approach to analyse the Scotch Whisky industry and to highlight the problems that power relationships pose within a typical cluster. It is imperative that policy-makers are aware of the power relationships which exist in clusters if clustering strategies are to deliver the perceived potential.