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1 – 10 of over 4000Xinyu Wang, Yu Lin and Yingjie Shi
From the intra- and inter-regional dimensions, this paper investigates the linkage between industrial agglomeration and inventory performance, and further demonstrates the…
Abstract
Purpose
From the intra- and inter-regional dimensions, this paper investigates the linkage between industrial agglomeration and inventory performance, and further demonstrates the moderating role of firm size and enterprise status in the supply chain on this linkage.
Design/methodology/approach
Using a large panel dataset of Chinese manufacturers in the Yangtze River Delta for the period from 2008 to 2013, this study employs the method of spatial econometric analysis via a spatial Durbin model (SDM) to examine the effects of industrial agglomeration on inventory performance. Meanwhile, the moderation model is applied to examine the moderating role of two firm-level heterogeneity factors.
Findings
At its core, this research demonstrates that industrial agglomeration is associated with the positive change of inventory performance in the adjacent regions, whereas that in the host region as well as in general does not significantly increase. Additionally, both firm size and enterprise status in the supply chain can positively moderate these effects, except for the moderating role of firm size on the positive spillovers.
Practical implications
In view of firm heterogeneity, managers should take special care when matching their abilities of inventory management with the agglomeration effects. Firms with a high level of inventory management are suited to stay in an industrial cluster, while others would be better in the adjacent regions to enhance inventory performance.
Originality/value
This paper is the first to systematically analyze the effects of industrial agglomeration on inventory performance within and across clusters, and confirm that these effects are contingent upon firm size and enterprise status in the supply chain. It adds to the existing literature by highlighting the spatial spillovers from industrial clusters and enriching the antecedents of inventory leanness.
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Changyao Song, Qi Zhang, Xinjian Li and Anni Zhang
The interaction between the culture and tourism industries is naturally concentrated in cities. However, the effect of their co-agglomeration on urban tourism development depends…
Abstract
Purpose
The interaction between the culture and tourism industries is naturally concentrated in cities. However, the effect of their co-agglomeration on urban tourism development depends on their level of integration. This study aims to answer the following questions: Can culture–tourism co-agglomeration promote the development of the tourism economy? Is the effect of culture–tourism co-agglomeration on tourism development moderated by culture–tourism integration? Does culture–tourism co-agglomeration have spatial spillover effects?
Design/methodology/approach
Taking 262 prefecture-level cities in China from 2009 to 2019 as the research sample, this study measures the degree of culture–tourism co-agglomeration using a co-agglomeration index and measured culture–tourism integration using a coupling coordination degree model. Using a threshold model and a spatial econometric model, this study examined the effect of culture–tourism co-agglomeration on urban tourism development.
Findings
Culture–tourism co-agglomeration had a positive effect on the urban tourism economy, and the effect differed according to geographical location and city grade. Moreover, culture–tourism co-agglomeration’s effect on the urban tourism economy was affected by the level of culture–tourism integration. When the level of culture–tourism integration crossed the threshold, the positive effect of culture–tourism co-agglomeration on the urban tourism economy will be enhanced. Finally, culture–tourism co-agglomeration had positive spatial spillover effects on surrounding cities.
Originality/value
This study integrated culture–tourism co-agglomeration, culture–tourism integration and urban tourism economy into the same research framework and innovatively analyzed the effect of the scale and quality of culture–tourism interaction on the urban tourism economy.
研究目的
文化产业和旅游产业之间的互动性使其天然地在城市中集聚发展。然而, 文化和旅游协同集聚对城市旅游发展的影响取决于它们的融合发展水平。本研究旨在回答以下问题:文化和旅游协同集聚能否促进旅游经济的发展?文化和旅游协同集聚对城市旅游发展的作用是否受到文化和旅游融合发展水平的调节影响?文化和旅游协同集聚对城市旅游发展的影响是否具有空间溢出效应?
研究设计
本文以2009-2019年中国262个地级及以上城市为研究样本, 采用协同集聚指数测度城市文化和旅游集聚水平, 采用耦合协调度模型测度城市文化和旅游融合发展水平, 并通过构建面板门槛模型和空间计量模型, 检验文化和旅游协同集聚对城市旅游发展的影响。
研究发现
文化和旅游协同集聚对城市旅游发展具有正向的促进作用, 而且这种影响会因为地理位置和城市等级的不同而存在差异。此外, 文化和旅游协同集聚对城市旅游发展的促进作用还受到文旅融合发展水平的影响, 当文旅融合发展水平跨越发展门槛后, 文化和旅游协同集聚对城市旅游发展的正向影响得到增强。最后, 文化和旅游协同集聚对周边城市具有积极正向的空间溢出效应。
创新点
本文将文化和旅游协同集聚、文化和旅游融合发展、城市旅游发展纳入统一框架, 创新性地分析了文化和旅游互动发展的规模和质量对城市旅游发展的影响。
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This paper aims to estimate the effect of agglomeration on the probability of being an informal firm in Cali, Colombia. Informal firms produce legal goods but do not comply with…
Abstract
Purpose
This paper aims to estimate the effect of agglomeration on the probability of being an informal firm in Cali, Colombia. Informal firms produce legal goods but do not comply with official regulations. This issue is relevant because, similar to other developing countries, the informal sector in Colombia employs more than 50 per cent of the workforce. The results of this study demonstrate that one standard deviation increase in agglomeration reduces by 52 per cent the probability of being informal. Results are consistent with the idea that informal firms benefit less from agglomeration because of legal restrictions that block the relationship with formal firms.
Design/methodology/approach
The objective of the present paper is to estimate the effect of agglomeration on the probability that a firm – given a location – chooses to be informal. The authors deal with endogeneity issues by using soil information related to earthquake risk, which reduces the height of buildings and therefore increases the cost of agglomeration. The analysis focuses on Cali, Colombia, where the informal sector employs 60 per cent of the workforce. The registration of economic activities is used as a criterion to identify informal firms, in such a way that the percentage of informal firms is 42 per cent.
Findings
The authors find that the effect of agglomeration is strongly negative. The probability of being informal diminishes by 52 per cent when agglomeration increases by one standard deviation. Results in this paper shed light on how formal firms tend to be localized in high-density commercial and industrial areas, while informal firms are localized in low-density and peripheral areas where the land for production is cheaper and where they can avoid the control of authorities.
Originality/value
Theory argues that spatial production externalities and commuting costs are among the main forces that shape the city’s internal structure. Externalities include effects that increase firms’ production, and therefore workers’ income, when the size of the local economy grows. The authors now have strong evidence that firms’ productivity is positively related with the volume of nearby employment. Most of the empirical findings concern firms in the formal sector and, accordingly, the literature says little about the effect of agglomeration on informal firms’ location. However, this effect is crucial for developing countries where informal work is the main option for less-educated workers facing unemployment.
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Hongman Liu, Shibin Wen and Zhuang Wang
Agricultural carbon productivity considers the dual goals of “agricultural economic growth” and “carbon emission reduction”. Improving agricultural carbon productivity is a…
Abstract
Purpose
Agricultural carbon productivity considers the dual goals of “agricultural economic growth” and “carbon emission reduction”. Improving agricultural carbon productivity is a requirement for promoting green and low-carbon development of agriculture. Agricultural production agglomeration is widespread worldwide, but the relationship between agricultural production agglomeration and agricultural carbon productivity is inconclusive. This paper aims to study the impact of agricultural production agglomeration on agricultural carbon productivity, which is conducive to a better understanding of the relationships among agglomeration, agricultural economic development and carbon emission, better planning of agricultural layout to build a modern agricultural industrial system and achieve the goal of carbon peaking and carbon neutrality.
Design/methodology/approach
Based on China's provincial data from 1991 to 2019, this paper uses non-radial directional distance function (NDDF) and Metafrontier Malmquist–Luenberger (MML) productivity index to measure total factor agricultural carbon productivity. Subsequently, using a panel two-way fixed effect model to study the effect and mechanism of agricultural production agglomeration on agricultural carbon productivity, and the two-stage least squares method (IV-2SLS) is used to solve endogeneity. Finally, this paper formulates a moderating effect model from the perspective of the efficiency of agricultural material capital inputs.
Findings
The empirical results identify that Chinese provincial agricultural carbon productivity has an overall growth trend and agricultural technological progress is the major source of growth. There is an inverted U-shaped relationship between agricultural production agglomeration and agricultural carbon productivity. The input efficiency of agricultural film, machine and water resources have moderating effects on the inverted U-shaped relationship. Agricultural production agglomeration also promotes agricultural carbon productivity by inhibiting agricultural carbon emissions in addition to affecting agricultural input factors and its internal mechanisms are agricultural green technology progress and rural human capital improvement.
Originality/value
This paper innovatively adopts the NDDF–MML method to measure the total factor agricultural carbon productivity more scientifically and accurately and solves the problems of ignoring group heterogeneity and the shortcomings of traditional productivity measurement in previous studies. This paper also explains the inverted U-shaped relationship between agricultural production agglomeration and agricultural carbon productivity theoretically and empirically. Furthermore, from the perspective of agricultural material capital input efficiency, this paper discusses the moderating effect of input efficiency of fertilizers, pesticides, agricultural film, agricultural machines and water resources on agricultural production agglomeration affecting agricultural carbon productivity and answers the mechanism of carbon emission reduction of agricultural production agglomeration.
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Collins Osei, Maktoba Omar and Tasneem Suliman Joosub
The purpose of this paper is to examine the role colonial ties play in attracting foreign direct investment (FDI) to Ghana, several years after the official end of colonisation in…
Abstract
Purpose
The purpose of this paper is to examine the role colonial ties play in attracting foreign direct investment (FDI) to Ghana, several years after the official end of colonisation in the African continent. Colonisation left behind legacies of institutional framework, social ties and remnants of companies of colonial masters, which could potentially offer contemporary businesses from home countries the benefits of country of origin agglomeration.
Design/methodology/approach
This paper uses sequential explanatory mixed research design through 101 questionnaires and 8 interviews from the UK companies with FDI in Ghana. This approached enabled the initial quantitative results to be explored further through the qualitative data.
Findings
Colonial ties have limited influence on contemporary flow of FDI to Ghana, in spite of the institutional legacies between former colonisers and colonies. Majority of UK companies are influenced by agglomeration opportunities in general rather than country of origin agglomeration. However, country of origin agglomeration remains important to over a third of the companies surveyed.
Research limitations/implications
The sample was taken from the non-extractive industry in Ghana, and caution must be applied in generalising the findings. However, some universal issues concerning agglomeration and institutions are discussed.
Originality/value
Although there has been some research on colonial history and its impact on FDI in Africa, existing knowledge on bilateral relations is rather limited. Unlike previous studies, this research provides depth by examining colonial influence on FDI between two countries, using two key concepts: country of origin agglomeration and institutions. It provides UK companies with contemporary views to consider when exploring FDI opportunities in Ghana, particularly in relation to the effects of the colonial history. It also provides investment promotion agencies with empirical results on the importance of various forms of agglomeration and institutions for FDI attraction.
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Minh Tam Thi Bui and Arayah Preechametta
The purpose of this paper is to examine effects of regional economic integration on the concentration of manufacturing firms in provinces of Thailand on the border with Cambodia…
Abstract
Purpose
The purpose of this paper is to examine effects of regional economic integration on the concentration of manufacturing firms in provinces of Thailand on the border with Cambodia. It aims to clarify the interactions between dispersion and agglomeration forces within a firm’s location choice in the presence of economic integration and thereby to explain the feasibility of the border SEZs.
Design/methodology/approach
The theory of industrial clustering and New Economic Geography provides a theoretical framework to understand the locations of economic activities when regional economies are integrated. This paper employs provincial level data to calculate industry location quotients across a 10-year period from 2007 to 2017 in central Thailand and uses firm-level data from industrial censuses in 2006 and 2011 to estimate logit models for two border provinces with Cambodia and three eastern seaboard provinces. Two base models and extended models are tested to explain the persistent agglomeration of Thai firms in each manufacturing industry.
Findings
The authors found a positive correlation between the agglomeration level in 2006 and the choice of firms toward the border provinces in 2011. The disaggregated analysis shows that depending on the initial level of concentration in each industry, there can be agglomeration or dispersion effects. The advantage of low trade costs and labor costs of unskilled migrant workers are not significant factors attracting firms to the border. Firms in industries with increasing returns are more likely to stay in the hub.
Practical implications
The disaggregated analysis by industry provides very important implications for SEZ policy interventions. The important role of agglomeration economies limits the extent to which such policies can be successful. It would be an enormous challenge for policy makers to initiate forces which are strong enough to induce firms to relocate away from areas with high agglomerations. Policy interventions with attractive incentives should be very selective to industries already have a certain degree of concentration in the provinces so as to reinforce the agglomeration effects.
Originality/value
The research extends the empirical literature on SEZs by offering a unique case study of an emerging economy with a strong market foundation rather than a transitional or developed economy. It is also different from other research on SEZs when taking into account the effects of regional integration on border SEZ formation and firms’ location choices. In addition, this study employs firm-level data rather than provincial data to bring empirical insights and fill in the knowledge gap on agglomeration economies in Thailand with the presence of regional economic integration.
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No previous research has considered the changing agglomeration effect of foreign direct investment (FDI). The purpose of this paper is to fill the gap in the literature.
Abstract
Purpose
No previous research has considered the changing agglomeration effect of foreign direct investment (FDI). The purpose of this paper is to fill the gap in the literature.
Design/methodology/approach
The paper uses China as the object of study and examines the centripetal and centrifugal forces associated with FDI clustering over time.
Findings
Through studying the FDI determinants for the 29 Chinese provinces from 1993 to 2008, the empirical analysis supports a weakening agglomeration effect of FDI over time in China and further suggests that the effect has nearly vanished in the past few years.
Research limitations/implications
Data availability restricts the analysis to using provincial aggregate data and so further research is called for. It would provide more accurate and insightful information to study the FDI agglomeration effects at a finer level, using more disaggregated city‐level data by sector and by source country.
Originality/value
As the Chinese government has been making efforts to direct FDI to inland areas, this research provides immediate policy implications. Policy‐makers' investment incentives to direct FDI could go to waste when the agglomeration effect of FDI is too strong. The incentives should be able to achieve a much larger effect when the agglomeration effect becomes less strong.
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The purpose of this paper is to explore the location decision of multinationals across major cities in Latin America. Based on agglomeration economics and institutional theory…
Abstract
Purpose
The purpose of this paper is to explore the location decision of multinationals across major cities in Latin America. Based on agglomeration economics and institutional theory, the paper explores whether institutional quality of a city can temper the attraction of agglomeration factors.
Design/method/approach
The paper analyzes the geographic dispersion of three global fast-food franchise networks in 45 Latin American cities. The explanatory variables are horizontal aggregation of other multinationals and the institutional quality of a city. The direct and indirect impacts of horizontal agglomeration are explored through negative binomial regression with controls for city population and economic power [gross domestic product (GDP)].
Findings
The key finding is that location choice of fast-food networks is driven principally by market conditions and to a lesser extent by horizontal agglomeration. The institutional quality of a city has a positive influence on the agglomeration of fast-food networks. A city with strong institutional quality makes this relation stronger.
Research limitations
Other multinational and national fast-food franchises are not included in the paper. Future studies should include a greater number of global and local fast-food franchisers.
Practical implications
The positive reinforcements of agglomeration and strong institution are important for the investment location decision of fast-food multinationals. The institutional quality of the city should be an important consideration in the location decision as it expands regionally and within a country. Smaller cities may not offer the agglomeration advantages of the large metropolitan areas, but their good institutional quality may reduce the business costs for multinationals.
Social implications
Large cities in Latin America tend to reap the benefits of agglomeration. As a result, smaller secondary cities struggle to be relevant in generating economic activity and attracting private investments. One strategy to achieve relevance is to build strong and transparent institutions and a solid business environment.
Originality/value
The inclusion of institutional quality at the city level as moderation of the agglomeration factors influencing the location decision of a multinational is original. This paper contributes to our understanding of the importance of regional cities in attracting the investment of multinational firms.
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The main problem addressed by this research is the current debate between the negative and positive effects of industrial clusters. This debate is a result of gaps between…
Abstract
The main problem addressed by this research is the current debate between the negative and positive effects of industrial clusters. This debate is a result of gaps between theoretical implications and empirical evidence in both the classical agglomeration theory and the agglomeration lifecycle theory. The purpose of this study is to propose a framework for developing an index measuring both organizational cluster involvement and organizational supply chain including the three pillars (economic, social, and environmental). Furthermore, the index acts as a quantitative predictor of the stages of the life cycle of industrial clusters. Adopting a case study methodology, the applicability of the index development framework is demonstrated. First, cross-sectional exploratory interviews are performed to locate items measuring the three pillars of organizational sustainability within Egyptian communication industry. Second, an explanatory, cross-sectional approach is applied gathering data from eight professionals related to involvement and supply chain sustainability of their organizations. Analytical hierarchical process is used for weighting and aggregating individual item metrics into two indicators (Saaty, 1980). Measuring, managing, and controlling capabilities of organization's supply chains outweighs the need to manage risks. The proposed framework aids firms within a cluster in making timely decisions about what needs addressing to improve supply chain sustainability performance. Hence, all environmental, social, and economic capabilities can be effectively monitored and controlled.
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Xiaodan Pan, Guang Li, Martin Dresner and Benny Mantin
As ecommerce becomes more prevalent, traditional brick-and-mortar retailers such as warehouse clubs (WCs) face the challenging task of maintaining and growing their customer base…
Abstract
Purpose
As ecommerce becomes more prevalent, traditional brick-and-mortar retailers such as warehouse clubs (WCs) face the challenging task of maintaining and growing their customer base. This study aims to unravel the combined impact of retail agglomeration and ecommerce activities on consumer foot traffic (also referred to as “footprint”) at WC stores, placing an emphasis on the locational strategies adopted by WCs in this evolving retail landscape.
Design/methodology/approach
Mobile-based customer foot traffic data for Costco, a major U.S. WC chain, is sourced for our analysis. We use Principal Component Analysis (PCA) to identify dimensions of general merchandise (GM) and narrow-range merchandise (NM) retail agglomeration. Two-stage least squares (2SLS) regressions are used to explore how the intensity of ecommerce activities and WC locational choices within retail agglomerations impact WC foot traffic.
Findings
Our analysis highlights a notable decline in WC store visits attributable to both GM and NM ecommerce activities, with GM ecommerce presenting a more significant competitive challenge to WCs. Regarding retail agglomerations, proximity to GM clusters that include a diverse range of supercenters, department stores, and club stores, is associated with an increase in WC customer visits within their vicinity. In contrast, the influence of NM agglomerations is mixed; clusters adjacent to grocery stores lead to higher WC customer traffic compared to those focused on other specialized stores. These findings underscore the strategic importance of location in mitigating the adverse effects of ecommerce competition. Additionally, our study uncovers intricate dynamics between GM and NM retail clusters and ecommerce activities, demonstrating varied impacts on WC customer footprint.
Research limitations/implications
Access to customer footprint data illustrates the potential of this data source for retail decision making and researchers. Our analysis is limited to one chain, notably Costco.
Practical implications
Our findings underscore the need for retailers to adeptly navigate the evolving retail landscape, including the confluence between physical and digital retail environments, to secure future success. In particular, our results emphasize the benefits of locating stores within mixed retail agglomerations and underline the need to consider the broader retail landscape in location decisions.
Social implications
The rise of ecommerce in the U.S. has reshaped consumer behavior and altered local shopping districts’ communal dynamics. This change may spur policy interventions to help physical stores compete with online retailers, emphasizing the importance of retail diversity and community-centric environments to sustain communal retail interactions amidst digital advancements.
Originality/value
The paper makes use of a unique dataset to provide a first assessment of the combined effects of retail agglomeration and ecommerce activities on consumer foot traffic for WC retailers. Thus, this paper provides insights into the impacts on consumer shopping behavior from the dynamic interactions between physical retail clusters and online shopping behaviors.
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