Abstract
Concerned with the current debate onflexibility-collectivity in small firms, this case study contributes to a better understanding of the dynamics of industrial clusters in developing countries, which is a relatively less re searched field. The garment cluster in Ahmedabad underscores firm strategy to maintain quality through adoption of 'intermediate' technology, and by catering to highly segmented and vast domestic and external markets. Despite severe competition for survival in a highly customised market, the small firms have gained immensely through collective action, often networking with the state. Business dynamism in such clusters has certainly relegated the status of labour to the background. Joint action by entrepreneurs and the state needs to focus on upgrading both technology as well as labour standards in clusters, earnestly and with vigilance.
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