The role of spatial structures and social values in shaping local productive systems -New lessons from the wood-furniture cluster of Jepara, Indonesia

TL;DR

This paper explores how the unique spatial and social structures of Jepara's wood-furniture cluster enable it to withstand global competition without upgrading, highlighting its blend of liberal business practices and conservative social values.

Contribution

It introduces a new perspective by analyzing Jepara as a Marshallian district influenced by social and spatial factors, beyond traditional value chain analysis.

Findings

Jepara's cluster combines liberal business practices with conservative social values.

The spatial organization resembles a unique arbourlike morphology.

Jepara functions as a new form of Marshallian district in a globalized context.

Abstract

This paper revisits the well-known wood-furniture cluster of Jepara (Central Java, Indonesia) with new parameters inspired by the theories of industrial districts and clusters. So far, literature on this production centre, mostly focused on value chain analysis, has failed to explain how it could survive external shocks and rising pressure of global competition, without upgrading. Based on a qualitative analysis encompassing the spatial organization and social structures supporting the productive system, this contribution of geography, sociology, and anthropology to development economics unveils a singular combination of ultraliberal business practices together with conservative social values, expressed in a unique arbourlike morphology. These qualitative results tend to show that, beyond the concept of flexible specialization identified by literature as the core driving force of the cluster, Jepara may be considered as a new avatar of Marshallian district in a context of subaltern globalization. Such findings question the opportunities offered to subaltern towns in emerging economies enrolled in globalization to capitalize their own local social and environmental assets to develop labour-intensive activities capable of adapting an ever-changing deal imposed by external price-driven competition.