Clusters and Competitive Advantage_6 docx

104 Clusters and Competitive Advantage civilizations. This guaranteed an environment that was conducive to devel- opment and commercial exploitation of the high-quality local cotton. Although the region’s fortunes waxed and waned over the centuries, invaluable experience in the production of textiles was accumulated. In the later decades of the twentieth century, development of the cluster was aided by central government measures (especially public investment in the 1970s and the provision of incentives in the 1980s) and the support provided by local institutions such as the Chambers of Commerce and Industry, the small and Medium-Sized Industry Association (KOSGEB) the Aegean Garment Pro- ducers’ Association and Pammukkale University. The availability of capital accumulated through cooperatives and previous commercial activities, as well as remittances from Turkish guest workers in Germany who were keen to invest in their home town, was also beneficial to the growth of the cluster. Yet another factor was Denizli’s favourable sociocultural environment, with strong entrepreneurial skills going hand in hand with financial relationships based on mutual trust and fellow citizenship. One example of this was private borrowing against the so-called ‘Babadag Banknotes’, or promissory notes, which were always paid on the due date. This traditional practice, although not as prevalent as it once was, still takes place in Denizli (Sengün, 1998). Borrowing money from family members and friends (rather than banks), and borrowing and buying machinery from other firms owned by relatives or friends were also common (Erendil, 1998), and of crucial import- ance during the early years of an enterprise. Other types of support provided by the social network included knowledge and technology transfers (Eraydin, 2002a). The widespread use of subcontracting served to reinforce trust, espe- cially with respect to vertical relations among cluster firms, as evidenced by the fact that firms still prefer to maintain long-term relations with trusted subcontractors. Thus in answer to the question ‘Why Denizli?’, it can be argued that favourable historical circumstances, the availability of high-quality raw materials, the presence of talented craftspeople, a local demand for their products, and experience and know-how accumulated over the centuries led to the burgeoning of commercial activities in textile-related areas, aided by public investment, guest workers’ remittances and state incentives. Without one final factor, however, the cluster might never have realized its potential: the entrepreneurial spirit of the people of Denizli. One of our interviewees pointed out that Denizli was not in fact an ideal location because, among other things, the quality of the water and the transportation services were poor, and therefore Izmir would have been a better location. However, given that the cluster emerged and developed in Denizli despite its locational disadvantages, it can be concluded that the factors identified above far outweighed the disadvantages. Besides, once the process of cluster formation begins, the dynamics of this process can turn the cluster into a self-reinforcing system. This will be discussed in a later section. Here it is sufficient to say The Towel and Bathrobe Cluster in Denizli 105 that outside individuals, firms and institutions may be drawn into the locale after seeing the success of others and the benefits of concentration, thus feeding the reinforcement of the cluster. Turning now to the second question posed at the beginning of this section – what brought about the specialization in towels and bathrobes? – although textile production in the region (including towels) had deep historical roots, towel production became an important economic activity in Denizli only in the 1970s. 20 This was mainly initiated by two events: the large-scale importation of looms used for towel production from Bursa in the 1950s, and the export success achieved by this product from the 1970s. One of the very first exporters of towels and bathrobes was a prominent entrepreneur from Babadag, A. Kadir Uslu, whose father was a merchant of cotton yarn. Uslu’s willingness to take risks was such that when he wanted to import looms to produce towels his father was reluctant to help him financially, saying that he was ‘a bit crazy’. Despite the lack of support from his relatives, he duly imported the looms and later went to Germany with a container load of towels. This venture was very successful, and he returned to Denizli with a significant number of orders, which motivated others to enter this area of activity. The story of this entrepreneur raises the question of whether the emergence of the towel and bathrobe cluster in Denizli was purely a chance event. I would argue against this contention. It was no accident that Denizli came to specialize in towels and bathrobes. Rather Denizli entrepreneurs deliberately concentrated on the manufacture of these products and their export, aided by the economic infrastructure of Denizli, the main dimensions of which were a long history of textile production and the availability of major inputs, semiskilled workers and related/supporting industries. In other words the local business environment was conducive to such a development, and its potential was realized by the entrepreneurs of the region. According to our interviewees, towels and bathrobes are amongst the easiest textile/clothing items to produce, which facilitated the entry of new comers and hence the enlargement of the cluster. Another factor was the international demand for these products. Arguably, local demand was an important factor only in the early stages of the cluster, although local customers are still demanding when it comes to the quality of textiles and clothing, for example people from Babadag can judge the quality of a product at first glance. However it is the cluster firms’ export orientation that is now putting pressure on the firms to upgrade. Research and development are sometimes internationally driven, too: ‘The impetus for new product devel- opment comes from international customers. A customer from the USA, for instance, asked whether we could produce towels made of synthetic materials, and this triggered R&D activity as well as new investments in this area. The same is true of quality- and design-related issues.’ Although international customers can be very demanding and ask for improvements in quality and 106 Clusters and Competitive Advantage service, the Denizli producers have faced the challenge and specifically targeted difficult, demanding customers in stable developed markets. Perceived costs and benefits of clustering As mentioned previously, there are strong subcontracting relations among the cluster firms, enabling them to excel in their particular areas of specialization and to undertake work beyond the capacity of their firms. This ensures smooth and rapid production. With regard to intermediate tasks such as embroidery in particular, it is important for firms to have easy access to the required services and the degree of control afforded by geographic proximity. It is also important for the subcontractors to be competitive in their special areas of activity. As emphasized by one of our interviewees, ‘if they are good, you do not need to worry about this part of the production process; you instead focus on the critical issues of your business such as quality and the marketing of your products’. In a cluster environment, benefits accrue not only from vertical relations in the value chain but also from relations with related and supporting industries and competing firms. Apart from obvious advantages such as lower transportation costs, the presence of related and supporting industries also enables operations to run smoothly, just as in the case of subcontracting relations. According to one manager, ‘It is reassuring to know that there are firms nearby operating in complementary areas such as dyeing, machinery and packaging. I think this also encourages people to choose Denizli when they think about starting a new venture in this area.’ Hence it is not surpris- ing that suppliers of high-quality inputs, dyes, packaging and so on emerged in Denizli in parallel with the development of the towel and bathrobe industry. With regard to the benefits associated with the presence of competing firms, the cluster firms closely monitor each other in order to keep up with new developments and innovations. An interesting related observation is that there is an unspoken agreement on maintaining price parity on the main products of the cluster, and if one firm substantially reduces the price of, say, its bathrobes, this will immediately be brought to the attention of the other producers in Denizli. In this regard the cluster environment acts as a control mechanism to prevent destructive price competition, since it is clear that all producers will lose if such competition breaks out. One negative aspect of the colocation of rival firms is the immediate copying of ideas. However the managers interviewed seemed to agree that although this can cause some concern in the short term, it does not matter in the long term as it prompts firms to strive to achieve what others cannot do, stimulating a mutually reinforcing process of upgrading and the pursuit of best practice. All this is easier and more rapid in a cluster context, and is facilitated by the existence of social networks and a sense fellow townsmanship that aid the flow of information. The Towel and Bathrobe Cluster in Denizli 107 Thus information spillovers enhance the self-reinforcing process that feeds innovation in the cluster. As mentioned earlier, new information is obtained from various sources, including trade fairs, catalogues, subcontr- actors, customers and the Denizli Chambers of Commerce and Industry. Moreover members of industry associations meet regularly to discuss their problems and find remedies for them. Information on markets, strategies, customers and products are especially important – even more so than tech- nological information, according to some of the interviewees. One inter- viewee mentioned that a few cluster firms prefer to register their exports not in Denizli but in Izmir or Antalya to avoid the leakage of information on key customers and products. In summary, the case of the towel and bathrobe cluster in Denizli shows that a number of benefits can be derived from clustering. Apart from being convenient for customers (see the next section), control over subcontractors is much easier in a cluster context, ensuring smooth and rapid production. Social relations and relations of trust among the major actors in the region also contribute in this respect, as well as promoting a better flow of information. Further benefits are obtained from related and supporting industries, and even competitors. The only problems with the proximity of competitors are the rapid imitation of key strategies and the possibility of a price war, although the latter is unlikely as all parties would incur high costs. Similarly the former, although annoying for innovative firms in the short term, can produce fruitful results in the long term if it encourages firms to develop more sustainable sources of competitive advantage. The self-reinforcing nature of clustering Once a cluster is formed and successfully functioning, a positive feedback mechanism might come into operation, turning the cluster into a magnet that attracts other firms in the same or complementary lines of business. This happened to the Denizli towel and bathrobe cluster in the 1990s, when the city became well known in the world market. As towel production and export only began in earnest in the 1970s, cluster formation in this particular case took about 20 years. To illustrate the benefits of the self-reinforcing system that comes to operate in a well-functioning cluster such as the one in Denizli, consider the example given by one of our interviewees of a hypothetical entrepreneur in Nazilli (an Aegean town about 80 kilometres from Denizli), who wishes to establish a firm specializing in towel and bathrobe production. Nazilli also has a background in textiles and a similar, if not better, infrastructure and workforce than Denizli. Let us assume that this person has already imported the necessary machinery. He is likely to have problems right from the start of his endeavour; that is, setting up the right layout in the factory, for which he will probably need to employ a master craftsman from Denizli. Having sorted this out, the next step will be to buy cotton yarn. In order to do this 108 Clusters and Competitive Advantage at favourable terms he will have to go to Denizli, where the numerous merchants located in the city control this line of business. These merchants know all their Denizli customers very well, as well as their families. It will take some time for the entrepreneur to establish such a close relationship with the yarn merchants and gain their trust. Interpersonal relations are very important in securing a competitive price, good-quality products and timely delivery. 21 Another problem for the entrepreneur is that textile machines break down frequently, again requiring him to go to Denizli to find someone to repair them. He will also have to go to Denizli if he has to subcontract some of his factory’s operations. Moreover he will have to arrange the trans- portation of all inputs and products to and from Denizli. Assuming that he manages to overcome these obstacles, the next question he will face is how to market his towels and bathrobes in Nazilli. As pointed out by the interviewees, the Denizli industrial zone also functions as a market, and customers visit many firms before finalizing their purchasing decisions. The geographic concentra- tion of the firms makes it convenient for the customers to visit them rather than the other way round. In addition the related services are organized according to the needs of the cluster. For instance the personnel working in the banking sector in Denizli have detailed knowledge of the specific problems of the manufacturers operating there. In short, it will be virtually impossible for the hypothetical entrepreneur in Nazilli to keep up with the pace of business in Denizli and compete with its firms. In light of the above it is not surprising that none of the interviewees intended to leave his home town and change the location of his factory. Frequently heard statements in this regard were ‘We know how to do business here’, ‘We can follow the latest developments in our field here’, and ‘It is good to know that there are other enterprises in Denizli you can turn to if you need help and support’. These statements are in conformity with the finding of a survey by Mutluer (1995) that the locational advantages offered by Denizli were the principal reasons why 65 per cent of entrepreneurs decided to establish their enterprises there. A key factor in the growth of the cluster is new business formation, which usually takes place via spin-offs. The process works as follows. The growth of an enterprise provides its partners (who are usually relatives or fellow townsmen) with the financial means to found a business of their own, and well established contacts give them the confidence they need to engage in business operations by themselves. They are also familiar with the particular way of doing business in the locale, which is by no means guaranteed to be the same in another location. It should be noted that although spin-off firms tend to continue their contact with the original firm in the beginning, a delicate dynamic arises as the former may well become a competitor of the latter (Eraydin, 2002a). 22 With regard to the relative importance of the factors that contribute to the self-reinforcing nature of the cluster, external economies appear to be The Towel and Bathrobe Cluster in Denizli 109 the leading ones. Given that many other locales in Anatolia have a long history of textile production, as well as similar infrastructural and factor conditions, why did external economies in towel and bathrobe production emerge and turn into a self-reinforcing system in Denizli rather than some- where else? There are a number of possible answers to this, some of which were outlined above when discussing the reasons for geographic concentration. If we consider one possible reason, entrepreneurship, the question then is, why are Denizli entrepreneurs better than entrepreneurs elsewhere? This, it can be argued, is due to the characteristics of the local business environ- ment, competitive pressure in particular, which force people to sharpen their entrepreneurial skills, so the challenge now is to identify these characteristics. This can only be done by combining the analyses of all the case studies in this book, so the task will be left until Chapter 8. Before closing this section, it should be emphasized that a combination of factors – ranging from historical circumstances and factor conditions to the nature of competition and the sociocultural infrastructure – needs to be considered when trying to understand the underlying reasons for the emer- gence and subsequent development of this so-called ‘à la Porter’ cluster in full (Küçüker, 1998, p. 10). From a theoretical point of view, the towel and bathrobe cluster in Denizli resembles a number of geographic clusters in Italy in respect of the largely spontaneous nature of its development, its specialization and its strong export orientation. An entrepreneurial outlook and the rapid pace of new business formation, especially via spin-offs, are other noteworthy commonalities. The exact nature of the link between the self-reinforcing dynamic attained by the cluster over the years and the sustainability of its competitiveness is of special interest when attempting to understand the relation between clustering and competitiveness more generally, and it is to this that we turn to in the final section of this chapter. Concluding remarks and future prospects The analysis in this chapter has highlighted the important part played by historical circumstances, favourable factor conditions, related and supporting industries and a favourable context for firm strategy in the success of the Denizli cluster. Specifically, the low cost of labour, relatively cheap but high-quality raw materials (especially cotton), government incentives, the entrepreneurial ability of Denizli businessmen and a clear focus on quality have been instrumental in this success. Although some deficiencies remain, such as the lack of qualified personnel and capital and the need for infra- structural improvement, Denizli has been one of the world’s leading centres of towel and bathrobe production since the early 1990s. Its contribution to the Turkish economy is also noteworthy. For instance each year around 10 textile firms from Denizli are listed amongst the top 500 Turkish firms, ranked according to their sales revenues by the Istanbul Chamber of 110 Clusters and Competitive Advantage Commerce. In fact Denizli has been chosen as a model of local industrial growth by the State Planning Organization (TBMM, 2001a). The success of the Denizli firms has attracted further investment to the area, including banking facilities. As a result the cluster firms, which previously mainly relied on their own financial resources (and were proud of doing so), have gained access to external means of financing. This, however, caused severe financial – especially liquidity – problems for the firms in 2001, when the Turkish economy in general and banking sector in particular was hit by a major crisis (ibid.). There was perhaps no better test of the resilience of the cluster than a crisis of this scale, a ‘test’ that it managed to survive. In fact the February 2001 crisis came on top of a series of crises that hit the Turkish economy in the 1990s and badly affected many industries across the country. Specifically, in the early 1990s the Gulf crisis had a negative effect on profit margins. Then in 1994 the Turkish financial crisis had a particu- lar impact on output, employment and domestic sales, and resulted in an increase in the cost of financing (Temel et al., 2002). This was followed by the Asian and Russian crises of the late 1990s. In response to all these crises the cluster firms developed the ‘Free Trade Zone’ and ‘Transformation 2000’ projects. The purpose of the former was to provide tax advantages to firms, and the second was aimed at improving their level of technology (Eraydin, 2002a). According to our interviewees, compared with many other regions of Turkey, Denizli was less damaged by the crises, mainly because the cluster was highly export-oriented and its exports were directed towards stable, developed market economies. Apparently they learnt the art of crisis management very well, which was a must under the circumstances. One of the interviewees stated that he had been working as a manager for seven years and could not remember a single year going by without a serious national economic crisis. Any discussion of the present situation of and future prospects for the cluster must include the strategies followed by the firms. There is an under- standing amongst the firms that any strategy based on cost advantages such as cheap labour and low-cost inputs is not sustainable in the long term. According to the interviewees, the advantages of low-cost labour and good-quality but cheap raw materials were enough to secure a satisfactory export performance for the cluster firms until the end of the 1980s. Thereafter, however, new competitors emerged, especially in Pakistan, India and China, which prompted the Denizli firms to put more emphasis on quality as the price-sensitive segments were gradually lost to them. A major factor in the realization of this shift was the significant amount of capital that had been accumulated in the 1980s, when mostly standard products had been produced. This capital was used to finance new investments, especially in technology, thus enabling the cluster firms to improve the quality of their products. As touched on earlier, demanding international customers also played a key role in this respect, as evidenced by the following statement by The Towel and Bathrobe Cluster in Denizli 111 an interviewee: ‘We have come to the point where we cannot compromise with quality. This we have learnt from our international customers. . .We do not run away from their tough requirements and stringent standards. When a customer demanded fireproof baby clothing made from terry fabrics, for instance, we worked on it and brought it about.’ The interviewees argued that they had improved the quality of their products to such an extent that producers in other regions of Turkey were finding it difficult to keep pace. They had also done much to improve service quality. The cluster firms are aware that their future prospects will not be bright unless they find more sustainable sources of competitive advantage. To this end they have not only improved their product quality but also increased their product range. In strategic terms there are two possible courses that the firms can take: develop a brand of their own, or become producers for global brands. The former is the subject of considerable debate amongst the cluster participants. Some of the interviewees were of the opinion that developing a brand was a must, while others considered it to be an unneces- sary and unrealistic target. One of the managers in favour of developing a brand offered the following illustration of his point: ‘We sell a bathrobe to the USA for $30, and it ends up in a luxury store in New York where it is sold for $120.’ To capture some of the $90 margin, he argued, it was essential to build up a brand name. In fact some leading cluster firms have already made progress with this. There are, however, problems with marketing and devel- oping professional strategies, which are in turn related to the limited availa- bility of qualified personnel and finance: ‘Building a brand is expensive, requires time and finance. Most importantly, however, it requires an aes- thetic, an ability to develop a style, a cultural base, and an ability and will- ingness to follow developments in the world.’ The major challenge, in other words, is to overcome the limitations imposed by the current resource base of many firms, especially with regard to qualified personnel. A related concern is the risk involved in building a brand, and to date only a few firms have been successful in this endeavour. One of our inter- viewees argued that this was a matter of specialization: ‘We tried to develop a brand and we went bankrupt. As Calvin Klein said, retailers should not attempt to be producers, and vice versa.’ In fact, because the sector is domi- nated by a large number of small firms it is unrealistic to expect that all firms will be able to develop widely known brands. According to one interviewee, it will take some time but it can be expected that about five or six strong brands will be established, and that will be enough to promote the image of Denizli in the world market. 23 Another interviewee suggested that instead of individual firms developing brands of their own, it might be a better idea to promote the name of Denizli in the world market. The latter course and attempts by individual firms to build a brand of their own are not mutually exclusive, unless what is implied is the development of a single brand for the entire network of firms. 24 112 Clusters and Competitive Advantage It is often claimed in the literature that clusters in developing countries are locked into serving as low-cost subcontractors to firms in developed economies, which is not always desirable. Moreover it is difficult for devel- oping-country subcontracting firms to sustain their relative positions in the world market since they can easily be displaced by others offering even lower prices. The need to develop more sustainable sources of competitive advantage is also imposed by the changing circumstances in the business environment. Only if this is achieved can a subcontractor be an indispensable associate of a global firm. The following statement by an interviewee is informative in this respect: ‘If it turns into a relation based on mutual dependence, subcontracting is probably sustainable’, but this is only possible if subcontractors continuously improve their service and become irreplaceable. ‘We should avoid doing too simple things’, he continued, ‘we shall only have a chance in the future if we can produce textile items that low-price competitors cannot.’ Yet another issue that should be considered is that there is concern about the high degree of specialization in the Denizli economy, 25 that is, it is dependent on the textile industry in general and the towel and bathrobe cluster in particular. Some organizations consider that the dominance of the towel and bathrobe cluster constitutes a serious constraint on the local eco- nomy and warn that the lack of variety is risky and might create problems in the long term (DTO, 2003; IAV, 1997). One suggestion is to encourage investment in the other sectors in which Denizli has a strong potential: food and beverages, iron and steel, marble and tourism. If a crisis should affect the cluster it would be reassuring to know that there were other areas to turn to, but our analysis shows that the benefits of clustering are significant. One should also be careful about sweeping generalizations such as the argument that the sector should be abolished since it is old-fashioned and mature and therefore has no future. This argument is raised for the textiles/ apparel sector more generally, which is one of the leading sectors in the Turkish economy. Italy offers an illustrative example of a country that has achieved a considerable degree of development as well as retaining an impetus for further growth despite its specialization in ‘old fashioned’ or ‘mature’ industries. It is how these industries compete – that is, their strategy – that really matters (Porter, 1990). Some researchers (for example Erendil, 1998) suggest that a likely conse- quence of the recent tendencies observed in Denizli could be a gradual loss of economies of agglomeration since, with the sector becoming more differ- entiated and segmented, interfirm relations will change and the necessity of collective action and collaboration will diminish. This reflects an incomplete evaluation of the reasons for geographic concentration: firms do not only agglomerate in order to cooperate. Rather there are gains to be had from being located close to competitors and sharing the same business environment, even if competing firms are unable and/or unwilling to cooperate when The Towel and Bathrobe Cluster in Denizli 113 organizing production. Besides the available evidence suggests that the colo- cation of rivals might lead to differentiation but will not inevitably result in the dissolution of clusters (Baum and Haveman, 1997). In summary, circumstances are changing and it remains to be seen how the towel and bathrobe cluster in Denizli will react to recent challenges. Denizli has now reached the stage that can be observed in many other clusters in the world: having confronted the consequences of its initial attempts to integrate itself into foreign markets, it now faces the challenge of overcoming the negative factors associated with less developed countries and integrating itself into international markets by means of higher value-added products (Eraydin, 1997). Although Denizli has been described as a typical example of Porter-style clustering (Küçüker, 1998), it will have to find more sustainable sources of competitive advantage if it is to become a fully functioning, archetypal Porter cluster. This will be of determining importance in defining its relations with global producers as a local production centre. Transformation is necessary, but it will not happen automatically. Rather it will depend on firms’ willingness to change, the availability of qualified human resources and local (private and public) institutions; that is, following the right strategies in a business environment that is conducive to improvement. The analysis provided in this chapter has shown that there are reasons to be optimistic. [...]... process and set standards for the final products, especially in the case of grape molasses, pistachios and kilims These standards were closely observed by producers, resulting in higher quality and greater hygiene in the case of food and beverages The local kilims were mostly sold in the Turkish market, especially in the Eastern Anatolian and Black Sea regions and in big cities such as Istanbul and Izmir... It is competitive in all sections of the industry, although its position is especially strong in hand-woven wool carpets and machine-woven carpets The main competitors in the hand-woven sector are Iran, India, Pakistan and China, while Belgium, the United States, the Netherlands, Germany and Italy are the leading competitors in the machine-woven sector The monetary value of indirect exports of hand-woven... different subenterprises, which changed names and affiliations over the course of time Rug weaving was organized regionally to cover the regions of Isparta (including Sandikli, Kula, Konya, Denizli, Tasköprü and Kütahya), Hereke (Yozgat, Niksar and Çanakkale), Diyarbakir (Erzurum, Van, Kars, Bingöl and Siirt) and Bünyan (Sivas, Kayseri, Kahramanmaras, Ordu and Malatya) (Küçükerman, 1987) During the 1950s,... agriculture, animal husbandry, textiles and leather production were the key economic activities in the city (Çelik, 1999; Göyünç, 1999) Ottoman rule came to Antep in 1516 (Çelik, 1999) and the city was 118 Clusters and Competitive Advantage administratively classified as lying within the provincial boundaries of Aleppo During the Ottoman era the city’s economy enjoyed further growth and textile production... the origins and subsequent development of the cluster in Gaziantep, and provides an overview of the city’s economic structure 116 Clusters and Competitive Advantage Origins and historical development A brief history of Turkish carpets The very first Turkish carpets were probably woven by Asian Turks some 2000 years ago In Anatolia, carpet weaving dates back at least to the eleventh century and is believed... machinery for textile and leather production Manufacture of basic precious and non-ferrous metals Other supporting transport activities Manufacture of wooden containers Manufacture of cutlery, hand tools and general hardware Veterinary activities Manufacture of made-up textile articles, except apparel Collection, purification and distribution of water Maintenance and repair of office and computing machinery... Manufacture of ovens, furnaces and furnace burners Retail sale of textiles, clothing, footwear and leather goods Retail sale of second-hand goods Retail sale in non-specialized stores Manufacture of luggage, handbags etc Repair of personal and household goods Hairdressing and other beauty treatments Manufacture of domestic appliances n.e.c Publishing of newspapers, journals and periodicals Manufacture... 2.66 2.66 1.1399 2.54 1.0772 2.40 1.0724 2.39 122 Clusters and Competitive Advantage Table 6.2 (Continued) ISIC Sector 2694 5020 Manufacture of cement, lime and plaster Maintenance and repair of motor vehicles Other service activities n.e.c Wholesale of textiles, clothing and footwear Other business activities n.e.c Manufacture of paints, varnishes and similar coatings 9309 5131 7499 2422 Location... fabrics and articles Manufacture of vegetable and animal oils and fats Manufacture of macaroni, noodles, couscous etc Manufacture of accumulators, primary cells and batteries Preparation of textile fibres; weaving of textiles Wholesale on a fee or contractual basis Sale, maintenance and repair of motorcycles and parts Manufacture of machinery for food, beverages and tobacco Manufacture of plastic products... Gaziantep were textiles and clothing (including garments, hats, yarn, towels, kilims, tablecloths and bedclothes), soap, leather, footwear, kitchenware (especially of copper), machinery production and maintenance, and comestibles such as pistachios, grape molasses, olive oil and baklava (layers of pastry with nuts) Gaziantepians kept a keen eye on the quality of the items they produced, and local craft associations . quotient 1 Gaziantep 44. 96 20. 166 2 Manisa 8. 56 3.9834 Kayseri 6. 86 5. 169 6 Usak 6. 10 12.4834 Istanbul 5.27 0.2153 Afyon 4.07 6. 23 26 Isparta 3 .66 7.2111 Adiyaman 3. 46 9.8507 Konya 3.03 1.2 563 Kocaeli. materials and live animals 3.000 6. 69 5259 Other non-store retail sale 2.9901 6. 67 2511 Manufacture of rubber tyres and tubes 2.887 6. 44 1920 Manufacture of footwear 2.8511 6. 36 369 2 Manufacture. for improvements in quality and 1 06 Clusters and Competitive Advantage service, the Denizli producers have faced the challenge and specifically targeted difficult, demanding customers in stable