The project is intended to explore the way in which a network or cluster makes possible the avoidance of the disadvantages of size while allowing the exploitation of any advantages. There are a number of steps in the project.

1 Choose an industry in which networks or clusters have been important in generating competitive advantage. What are the likely reasons for the emergence of networks in this sector of the economy? Are these networks likely to persist in the future?

2 Select a specific network of related organizations which has been successful and map out in detail the links between the different members of the network.

Is there a typical structure to such networks?

3 Compare the network or cluster with a ‘large’

enterprise operating in the same industry, preferably where the two are competing directly. Pay particular attention to any significant differences in cost or product quality.

4 Compare the advantages and disadvantages of each competitor at different moments in time. Which tends to win out in the dynamic context? Which has proved more competitive, better able to generate innovative activity?