Single firms and competitive advantage: context analysis identifying the embeddedness of a winery in the Hunter Valley

In recent years the term cluster has been widely used among researchers, practitioners and politicians. Clusters are found in various countries, e.g., watch clusters in Switzerland, automotive clusters in Germany as well as wine clusters in Australia. The current debate focusing on the benefits of globalisation contrasted with the importance of localisation through regions and business clusters is reflected in the media coverage of the topic (e.g., Economist, December 1, 2007). The presence of local clusters and the simultaneous development of a 'globalised' world where distances are no longer an obstacle to inter-organisational relations due to information and communication technology and the opportunities to reach every part of the world in a relatively short time is seen as a paradox (e.g., Porter, 1998, 2000). In theory, in global competition the role of the location should matter less. However, with regard to the relevance of clusters the opposite can be observed. Cluster development in recent years has increasingly become a relevant arena of public policy through attention to regional economic development initiatives. It is argued that attracting firms to clusters has positive effects for a whole region regarding the creation of jobs, higher purchasing power and other benefits of increased economic activity