CLUSTER AS A MANAGMENT TOOL INSTRUMENT AIMED AT BUSINESS EFFICIENCY IMPROVEMENT

In economically advanced countries, the concept of clusterization is a generally accepted and extensively used practice. While reasons for the establishment of clusters are numerous, the most notable ones are the influence of clusters on productivity, innovation, development of new businesses and encouraging exports. Clusters enhance the competitiveness of enterprises, stimulate the production of goods and services which will generate revenue in domestic and international markets. Croatia, as a transition country, is faced with many problems, such as declining competitiveness, lack of direct foreign investments, decline of export. Additionally, a major problem is the fact that there are a lot of small enterprises in Croatia that compete with each other. While a number of years is necessary for cluster development from the bottom up, the state is trying to influence cluster development and accelerate the process of cluster assembly. The Poljomehanizacija cluster is one the more successful examples in Croatia, while it clearly shows all the positive effects of clusterization on increasing small enterprise productivity inside a cluster, as well as a cluster in general.