The Copenhagen Microbrewery Cluster and its Influence on the Internationalization Process of the Individual Firm

Abstract

The purpose of this research is the investigation of cluster activities of the microbrewery industry around Copenhagen. Specifically investigated will be the existence of cluster activities, the power of the cluster, as well as the internationalization process of the individual firm and the impact of cluster activities on this process. The underlying research question states: To what extent do cluster activities occur in the microbrewery industry of the Copenhagen area, and how do they influence the individual firm in their internationalization process? The research follows a theoretical framework consisting of the investigation of clusters, cluster power as well as the double diamond theory, supplemented by literature on theories concerned with network theory. Investigated was this topic with help of interviews conducted with three representatives of the local microbrewery industry in the Copenhagen area, as well as supplementary data from secondary sources. During the analysis of the data, cluster activities supported the underlying theory in multiple instances. The classification of the microbrewery industry in the Copenhagen area is therefore valid. In context of the cluster power, the gathered information’s supported theory on cluster power in multiple instances. A valid definition of the cluster as a powerful working cluster, making use of cluster activities to their best potential was concluded. In terms of the sourcing of resources as well as knowledge, used in the daily operations by microbreweries, evidence was found of local as well as global sourcing. It was concluded that the need of international sourcing is due to a lack of local availability, specifically in terms of raw materials, as well as patent rights on resources and better price point of foreign suppliers. Due to this fact, relationships to foreign suppliers were formed and are constantly maintained. The research found further evidence of governmental support of the local microbrewery industry in multiple instances, through policies and financial reliefs. In terms of competing internationally, it became evident that the internationalization process is related to the size of the firm as well as their growth potential. As the Danish market is a small economy, microbreweries must serve as well the international market to increase the growth potential.