Investigation into Industrial Cluster's Development Effect on Efficiency and Competitive Advantage of Small and Medium Enterprises (SMEs) Individual Study: Stone Processing Cluster of Tehran

A great portion of small and medium enterprises (SMEs) in economy of developing countries encourages economists to find methods to make these enterprises efficient, advantageous and using them in industrial and economic development. In this paper efficiency’s types (internal efficiency, external efficiency and collective efficiency) have been identified and Cluster organization as a way to improve efficiency and competitive advantage of small and medium enterprises (SMEs) and considered. In "Tehran stone processing cluster" cluster effects on efficiency and competitive advantage of this cluster enterprises is evaluated based on method of competitive advantage analysis (MCAA). This method is based on single-sample t-test and Porter's diamond model (PD). The result shows us those enterprises of stone processing cluster of Tehran are not so successful in achieving to competitive advantages and acceptable efficiency. However advantages of clustering compensate internal inefficiency by external efficiency which helps them stay competitive. Moreover the attainment to collective efficiency (which is assumed one of advantages of clustering) is assumed as one of methods of efficiency enhancement.