Key Factors for the Successful Operation of Clusters: The Case for Slovenia

Background and Purpose: Companies are increasingly specializing and developing those key areas with which they can compete on the global market and are linking in clusters that are ingredient of territorial competitiveness. Clusters can play a competitive role in global value chains but once being successful, they may decline. For this reason, researching key factors for the successful operation of clusters in Slovenia is beneficial. Methodology: This study is based on an extensive review of scientific literature. Theoretical findings are tested by a study of clustering in Slovenia. In practice, we determine the number of operating clusters fifteen years after they were initiated by the institutional environment with help of web pages, e-mails and telephone calls. Using interviews, we determine reasons for the cessation of operations on the part of former directors and factors of successful operations with directors of successful clusters. Results: The institutional environment initiated start-up processes of creating clusters in Slovenia. After the termination of institutional financial support, Slovenian clusters, which have failed to develop their own financing system, ceased operation. Directors of still operating clusters confirmed that trust between cluster members is the most important success factor in the operation of clusters. Conclusion: The institutional environment in Slovenia adopted cluster policy and successfully leveraged the establishment of clusters using start-up financing. Less than half of these clusters continue to prosper under their own stream after policy retreatment. Clusters were not prepared for a dramatically different way of working. Trust has become a major driving force of adjusting to new conditions.