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The purpose of this paper is to theorize how the industry life cycle unfolds differently across places and how economic agglomeration varies over time.
Abstract
Purpose
The purpose of this paper is to theorize how the industry life cycle unfolds differently across places and how economic agglomeration varies over time.
Design/methodology/approach
The paper relies on literature review and conceptual analysis.
Findings
It generates a dynamic geographic concentration model (i.e. an industry’s degree of geographic concentration drops in the growth stage, rises in the mature stage, and drops again in the new growth stage) and a localized industry life-cycle model (i.e. temporal dynamics differ between the center and the periphery).
Originality/value
It makes contribution by theorizing that the extent to which an industry is geographically concentrated changes over time, and by demonstrating how an industry’s center and periphery may experience different temporal dynamics.
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Keywords
The purpose of this paper is to test geographic and economic distance of industrial agglomeration.
Abstract
Purpose
The purpose of this paper is to test geographic and economic distance of industrial agglomeration.
Design/methodology/approach
Based on a recent census database in China, we estimate the production function of Chinese firms, focusing on the impact of agglomeration economies.
Findings
The estimation results provide strong evidence that agglomeration effects decline with increasing geographic and economic distance.
Originality/value
Previous studies examine agglomeration effects at certain geographic and industrial level, but largely ignore that agglomeration benefit may be different at different levels of geography and industry. This paper contributes to the literature by examining the geographic and economic distance of agglomeration economies, and shows a clear pattern on geographic and industrial scope of agglomeration economies.
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Jungyul Sohn, Geoffrey J.D. Hewings and Tschangho John Kim
Through an intervention from a geographical perspective on organizational space, this article aims to offer a new horizon in understanding international business strategy.
Abstract
Purpose
Through an intervention from a geographical perspective on organizational space, this article aims to offer a new horizon in understanding international business strategy.
Design/methodology/approach
Starts with two interrelated questions: does space exist in organizations and how does an organization manipulate and produce this organizational space in order to gain competitive advantage? By tackling these questions in the context of international business activities, this paper engages existing (international) management theories.
Findings
This article critically reviews the narrow focus of most international business theories on physical location and distance as a significant determinant of foreign direct investment and diverse activities of transnational corporations (TNCs). Quantitative empirical studies in this genre tend to emphasize physical space as a mere “container” of different locations of TNC activities and to measure the distance between these locations as an independent variable in statistical models. Drawing upon recent theoretical developments in economic geography, the paper develops a relational perspective on business organizations. In such an organization space, there are no fixed locations manifesting themselves in physically measurable forms. Instead, locations and distances in an organizational space are relational and thus discursively constructed through actor‐specific strategies and practice. The paper argues that one key strategic goal of business organizations is to continuously expand its organizational space (viz. physical space) and to economize on this spatial expansion.
Research limitations/implications
Reveals the need for a critical reexamination of existing management and organization theories to take account of how space and boundaries may influence the strategy, structure, and performance of business organizations.
Originality/value
Examines the properties of organizational space and applies the proposed concept to the case of TNCs.
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Adriana Beatriz Madeira and Viviana Giampaoli
This study aims to understand how the institutional and populational characteristics of a Brazilian city, that is, size, gross domestic product (GDP), life expectancy, education…
Abstract
Purpose
This study aims to understand how the institutional and populational characteristics of a Brazilian city, that is, size, gross domestic product (GDP), life expectancy, education, violence and amount of workers benefiting from PAT (Workers’ Food Program) bias the agglomeration of fast-food companies.
Design/methodology/approach
The research involved 7,653 units distributed among 270 brands of fast-food chains (9 foreign and 261 Brazilian) operating in 542 Brazilian cities in 2015 and institutional and populational characteristics information about them. It calculated the Herfindahl index and implemented mixed inflated beta models.
Findings
The study found out that the agglomeration of establishments is mainly associated with the city’s income per capita, education, GDP and with some differences regarding the origin of the company, Brazilian or foreign.
Research limitations/implications
The limitations of the study are the availability of Brazilian cities' data and information about the fast-food companies, such as governance-related information and general infrastructure. The study was cross-sectional, which does not analyze the business installation speed.
Practical implications
This work provides data collection and analyzes which factors may contribute to the knowledge of the Brazilian fast-food market. It stands out that foreign companies do not seem to contemplate city violence. The proposed models can serve as an investors’ foundation to start, expand business and predict the number of establishments in a city.
Originality/value
The study highlights the relation between the cities’ institutional and populational characteristics and the aggregation of fast-food chains in Brazilian cities, using index commonly applied in industrial agglomeration.
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Samuli Leppälä and Pierre Desrochers
Besides subjectivism (in terms of value and cost) and the market process approach (as opposed to mainstream economics’ equilibrium analysis), methodological individualism is a…
Abstract
Besides subjectivism (in terms of value and cost) and the market process approach (as opposed to mainstream economics’ equilibrium analysis), methodological individualism is a foundational methodological principle of Austrian economics. While being (arguably) more consistently and consciously practiced within Austrian economics, methodological individualism is far from unique to this tradition and is a well-recognized principle of inquiry in the social sciences (Watkins, 1952a, 1952b). Needless to say though, methodological individualism remains controversial and discussions of its true meaning and adequateness periodically resurface in the philosophy of science literature (Hodgson, 2007; Udehn, 2002).
– The purpose of this paper is to investigate whether knowledge-flows through social interaction occur within the context of a policy-driven industrial cluster.
Abstract
Purpose
The purpose of this paper is to investigate whether knowledge-flows through social interaction occur within the context of a policy-driven industrial cluster.
Design/methodology/approach
The paper follows a single-case approach, adopting Malaysia's Multimedia Super Corridor cluster as the unit of analysis. Semi-structured interviews with firm- and non-firm-respondents in the cluster constitute the prime source of data.
Findings
Spontaneous social interaction leading to knowledge diffusion within the cluster may be lacking. However, policymakers may be able to remedy this somewhat by organising workshops, conferences and other events to help firms gain additional knowledge, although these measures should ideally complement, rather than replace, spontaneous face-to-face meetings.
Practical implications
Although policymakers may implement certain measures to try to compensate for the shortage of knowledge flows through social interaction (e.g. organising more “formal” events such as workshops and exhibitions), it is argued that these may not be sufficient in ensuring the long-term, self-sustaining success of the cluster.
Originality/value
The paper integrates extant literature on “organic” industrial clusters into a pre-planned, purpose-built, policy-driven cluster context. Research on policy-driven clusters is somewhat limited, with attention from scholars primarily focused on organic clusters. This paper attempts to bridge the gap for future research in the area.
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Francesc González‐Reverté and Oriol Miralbell‐Izard
The purpose of this paper is to assess the touristic potential of music festivals in Catalonia. It is an opportune goal because even though this region is experiencing an…
Abstract
Purpose
The purpose of this paper is to assess the touristic potential of music festivals in Catalonia. It is an opportune goal because even though this region is experiencing an important increase of new festivals and cultural events, there is a lack of adequate coordinating and guiding tourism policies.
Design/methodology/approach
The data was gathered with a survey to managers of music festivals that provided information about their management structure and economic results. The study findings are the result of an analysis done with a statistical multivariate technique and constructing indicators of event economic feasibility and tourism specialisation.
Findings
Data reveals the coexistence of two different types of festivals in Catalonia depending on their cultural or touristic orientation and with clear differences in their management style. Both types have a professionalized management structure and an economic self‐sufficiency when compared with the rest of Catalan cultural events, so they can be considered as an asset for regional tourism development. Nevertheless, some problems are detected in management practices that should be improved when implementing a specific tourism event policy.
Originality/value
The research has built a unique event data base that can be useful for decision making in tourism public administration. The paper suggests that local and regional administration should consider music festivals and cultural events, in general, as excellent resources to create new tourism products. Some of the characteristics of festivals, such as their important potential as tourism attractions and their cultural identity or the economical success, are critical assets to their high potential in local tourism development. These findings should justify a more resolute public policy of events and music festivals in Catalonia.
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Bartolomé Marco-Lajara, Enrique Claver-Cortés and Mercedes Úbeda-García
The present paper aims to analyze how the performance of hotels located on the Spanish Mediterranean coast (peninsular and Balearic) and Canary coast is affected by the degree of…
Abstract
Purpose
The present paper aims to analyze how the performance of hotels located on the Spanish Mediterranean coast (peninsular and Balearic) and Canary coast is affected by the degree of business agglomeration in tourist districts. If agglomeration affects hotels positively, then the externalities generated in tourist districts will be relevant when locating an establishment. Otherwise, the reason why hotels group together geographically would be more related to the suitability of beaches as a tourist destination. The study also analyzes the impact that regions or autonomous communities have on hotel performance.
Design/methodology/approach
The hypotheses are tested by multiple linear regression in which hotel profitability acts as the dependent variable which can be explained by independent variables such as the greater or lesser agglomeration of tourist companies at the destination and the autonomous region where the hotel is located.
Findings
The results show that hotels situated at destinations with a higher degree of agglomeration are less profitable, probably due to the greater rivalry that exists among nearby competitors. However, in accordance with the theory of tourist districts, one could expect hotels located at destinations with a higher degree of agglomeration to be more profitable because of the greater externalities generated within the district. In this sense, it is possible that hotel location decisions were based more on the natural advantage model, where firms look for specialized inputs like beach or climate, than on production externalities models.
Research limitations/implications
It was necessary to work with secondary information sources which contain no data about RevPar (revenue per available room) or GopPar (gross operating profit per available room), the hotel profitability measures most often used in research studies.
Practical implications
The paper could be useful for hotel companies, when they are deciding on a location, and for public administrations.
Originality/value
The present paper is original for several reasons. First, it is one of the first studies which applies the theory of industrial districts to the tourism sector, a line of research which is still in its early stages of development. Furthermore, the ISTAT methodology is applied for the first time to the identification of Spanish tourist districts. Also, various studies relate the degree of agglomeration to hotel profitability, but none so far have used the degree of company agglomeration within a tourist district, linking it to profitability.
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