Importance of clusters' performance evaluation with regard to the circular economy

Abstract

Research background: In this study, clusters are identified as enablers of the circular economy and resource efficiency for the value of clusters in developing advanced technological products and services as well as promoting regional growth is acknowledged by many policymakers and researchers (Lee, Ho, & Niu, 2012). The aim of companies is to enhance competencies and create competitive advantages in global competition and this can be achieved through pulling from a common and accessible pool of resources, information and demand for innovation which means that companies can profit from belonging to a cluster. Purpose of the article: The main aim of the article is to overview the scientific literature that addresses the circular economy, identify clusters and their role in the circular economy and suggest how small and medium enterprises could engage in a circular economy through clusters' performance development. Methods: Bibliometric literature analysis enables identifying the latest trends in scientific articles regarding a circular economy and clusters. Findings & Value added: The findings suggest that clusters can work as enablers of a circular economy for small and medium enterprises gaining a competitive advantage at the same time. Clusters can encourage and provide conditions in which SMEs would turn to a circular economy. The proposed scheme of Cluster's competitive advantage can help cluster's coordinators, policy makers and all the concerned parties to verify the importance of clusters' involvement in the circular economy.