Impact of Latvian Wood Construction Cluster on the economic efficiency of its members
2020
Muska, A., Latvia Univ. of Life Sciences and Technologies, Jelgava (Latvia) | Mazure, G., Latvia Univ. of Life Sciences and Technologies, Jelgava (Latvia) | Muska, K., Jelgava Spīdola Gymnasium (Latvia)
The operation in the cluster allows merchants increase their operational efficiency, productivity, exportability and gain other benefits. The establishment of Latvian Wood Construction Cluster at the beginning of 2012 was targeted at promotion of the cooperation within the industry by developing the potential of production and export markets. The research aim is to study the changes in the economic efficiency of the merchants belonging to Latvian Wood Construction Cluster. Six Cluster members, whose economic efficiency was measured consistent with the methodology developed by the research authors, were selected for the validation or rejection of the research hypothesis and achievement of the research aim, which was advanced following the recommendation of the experts. The research results lead to the conclusion that the economic efficiency of the merchants under the study has not improved during the Cluster performance period; it has even worsened, especially for “Nordic Homes”, “HUSVIK”, “Dores fabrika” and “Cross Timber Systems”, compared with the average industry figure. Nevertheless, the net sales, operating profit and net profit of “BYKO–LAT” have increased during the Cluster performance period and the achieved results have significantly surpassed the average industry figures, the merchant’s economic efficiency did not present an improvement during the Cluster performance period due to the decline in return on assets, increase in production costs, decline in the profit to long-term capital ratio in 2017 and 2018 as well as the decrease in return on equity and commercial profitability in 2018. The authors explain the obtained research results by the fact that the Cluster activities are performed with the aim to inform on the Cluster operation, its members and wood construction; the Cluster activities are less targeted at the increase of economic efficiency.
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