Exploring farmers markets as a temporary cluster to improve local food economy

Abstract

Purpose The purpose of this paper is to explore how to improve the contribution of farmers markets (FMs) to the local food economy and improve their management through a new temporary clustering management approach. Design/methodology/approach The research encompasses 78 structured interviews with farmers’ market vendors in the central coast region of California. A descriptive statistical and exploratory analysis to capture and evaluate the extent of various clustering activities currently existing in FMs is presented. Findings Analysis suggested an existing clustering behavior in FMs with different degrees that would enhance the role of these markets in local food economy. The improved social capital and financial performance of these markets shown in this study outperformed other cluster metrics monitored. Furthermore, there were some positive relationships between knowledge sharing (as a cluster activity) and both integration and financial activities among FMs vendors, highlighting interesting dynamics generated by the temporary nature of these clusters. Research limitations/implications The study was based on an exploratory research design, investigating a selected number of vendors in the central coast region of California. The research does not claim to provide a comprehensive survey of all FMs. Practical implications The analysis resulted in recommendations to improve efficiency of FMs’ practices at both the management level and the strategic level. These recommendations will enhance the contribution of these markets to the local food economy. The results also expand the practical knowledge bodies of regional and local food business development. Finally, the study highlights the social role of FMs through showing social capital as one of the main clustering drivers. Originality/value This study contributes to theoretical knowledge concerning the impact of clusters on operation performance by exploring a new temporary proximity that can be added to the existing geographical and digital proximity enriching the clustering approaches debate. Furthermore, the analysis provides specific novel insights into potential operational improvements for current farmers’ market management to enhance their economic and social roles.