Do clustered firms outperform the non-clustered? Evidence of financial performance in traditional industries

Previous research presented in numbers of studies strongly suggests that locating a cluster generates valuable benefits to clustered firms. These include better access suppliers and other scarce inputs, superior knowledge innovation, position from which build social network as well proximate successful competitors. Yet when the positive impact agglomeration clustering has been questioned on strictly financial performance firms, results these are not so convincing question enthusiasm for theory shown by scholars, practitioners, policymakers. The aim our is enrich existing concerning clustering, test if localisation natural cluster, membership organisation performance. We propose measure selected indicators such ROA, ROS, labour productivity Economic Value Added, focussing traditional industrial sectors – plastics textiles seated Czech Republic. analysing firm-level data period 2009–2016 fail confirm any significant influence firm or firms studied sectors. achieved same investigation potential differences young SMEs underperforming