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Open Access
Article
Publication date: 14 October 2022

Boxu Yang, Xielin Liu and Wen Liu

The purpose of this paper is to reveal the paradox between diversification and specialization from a dynamic perspective. More precisely, this paper will analyze the impact of…

Abstract

Purpose

The purpose of this paper is to reveal the paradox between diversification and specialization from a dynamic perspective. More precisely, this paper will analyze the impact of diversification and specialization as well as their interaction on regional innovation in different development stages.

Design/methodology/approach

Based on the principles of new economic geography and innovation geography, data from 30 provinces from 2001 to 2017 was used to explore the relationship. Least squares regressions with fix effect were used to examine the hypotheses.

Findings

The results show that both diversification and specialization have a significant and positive impact on regional innovation. The interaction of diversification and specialization also significantly and positively impacts regional innovation. The effect of industrial agglomeration is heterogeneity under different development stages.

Practical implications

This paper verifies the positive role of diversification and specialization and their interaction in promoting regional innovation. The impact of industrial agglomeration on innovation is dynamic and changes with the regional development process. Emerging economies should make appropriate industrial agglomeration strategies according to their development stages.

Originality/value

This paper introduces diversification, specialization and their interaction into the research framework at the same time to analyze their impact on innovation performance which deepened the research of industrial agglomeration. Taking China as an example, this paper also examines the impact of industrial agglomeration on regional innovation in different development stages that expands the dynamic perspective of industrial agglomeration.

Details

Asia Pacific Journal of Innovation and Entrepreneurship, vol. 16 no. 2
Type: Research Article
ISSN: 2071-1395

Keywords

Article
Publication date: 30 December 2020

Sheng Xu, Qingde Yue and Binbin Lu

The implementation of the innovation-driven development strategy is of practical significance for improving the quality and efficiency of economic growth and accelerating the…

Abstract

Purpose

The implementation of the innovation-driven development strategy is of practical significance for improving the quality and efficiency of economic growth and accelerating the transformation of economic development mode. The purpose of this paper is to study the impact of innovation-driven strategies on marine industry agglomeration and industrial transformation.

Design/methodology/approach

In traditional grey correlation analysis, when the positive and negative areas cancel each other out during the integration process, the calculation result of the correlation degree is often inconsistent with the qualitative analysis. For this reason, from the perspective of curve similarity, this paper constructs two response curves through the relative change area of the two curves and the relative area change ratio of similar degree, thus constructing an improved grey relational model.

Findings

The authors find that the innovation investment has a better correlation with marine industrial agglomeration. It also found that Guangdong Province has the highest degree of correlation between innovation indicators and marine industrial agglomeration. Much beyond the authors’ expectation, in the areas where marine industrial agglomeration is high, the synergistic effect is not obvious by using the location entropy method.

Originality/value

The improved grey correlation analysis method can effectively overcome the phenomenon that the positive and negative areas cancel each other in the integration process of the original algorithm, and it can also effectively measure the negative correlation between variables. This paper explores the impact of innovation drive on the agglomeration of marine industries, which is of great significance to the sustainable development of marine economy.

Details

Grey Systems: Theory and Application, vol. 12 no. 1
Type: Research Article
ISSN: 2043-9377

Keywords

Article
Publication date: 6 May 2020

Xinyu 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.

Details

Journal of Manufacturing Technology Management, vol. 32 no. 2
Type: Research Article
ISSN: 1741-038X

Keywords

Article
Publication date: 19 December 2019

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.

Details

International Journal of Emerging Markets, vol. 16 no. 2
Type: Research Article
ISSN: 1746-8809

Keywords

Article
Publication date: 31 May 2022

Nana Yang, Qiming Liu, Furong Qian and Xinglong Wang

Because of the rapid progress of global value chains (GVCs), it is worthwhile to study their impact on innovation. This study aims to explore the impact of GVC position of…

Abstract

Purpose

Because of the rapid progress of global value chains (GVCs), it is worthwhile to study their impact on innovation. This study aims to explore the impact of GVC position of high-tech industries in the developing-country context of China on innovation performance; it also aims to explore the moderating effects of industrial agglomeration (specialization agglomeration and diversification agglomeration) on the relationship between GVC position and innovation performance.

Design/methodology/approach

The study is based on data gathered on Chinese high-tech industries in 30 provinces from the 2005–2015 period. The econometric analysis relies on merged data from the China Premium Database and the Trade in Value Added 2018 Database.

Findings

The regression results show that GVC position of China’s high-tech industries significantly affects their innovation performance, and both specialization agglomeration and diversification agglomeration significantly enhance the positive relationship between GVC position and innovation performance of China’s high-tech industries. After dividing the country into coastal and inland regions, new findings appear.

Originality/value

This study highlights the importance of GVC position and its effect on innovation performance of China’s high-tech industries. It contributes to the literature on the relationship between GVCs and innovation by elaborating on the moderating effects of industrial agglomeration on this relationship.

Details

Chinese Management Studies, vol. 17 no. 3
Type: Research Article
ISSN: 1750-614X

Keywords

Article
Publication date: 4 November 2014

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…

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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.

Details

International Journal of Contemporary Hospitality Management, vol. 26 no. 8
Type: Research Article
ISSN: 0959-6119

Keywords

Article
Publication date: 20 July 2022

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.

Article
Publication date: 26 January 2023

Xiaoyang Zhao, Xia Mao and Yuxiu Lu

This study aims to investigate the factors affecting urban economic development in emerging economic market countries and to provide a new research perspective on urban skyscraper…

Abstract

Purpose

This study aims to investigate the factors affecting urban economic development in emerging economic market countries and to provide a new research perspective on urban skyscraper construction.

Design/methodology/approach

An empirical analysis based on a difference-in-differences (DID) model is conducted using data of urban data in China that expand into developed markets from 2003 to 2018.

Findings

The results of the spatial heterogeneity test indicate that the construction of skyscrapers has a significant promotional effect on the eastern city's economy. In contrast, it has a significant inhibitory effect in the central and western regions. Further findings demonstrate that the construction of skyscrapers can influence urban economic development by promoting industrial agglomeration, especially when the transmission effect of the diversified accumulation of tertiary industry is more prominent. The expansion analysis shows that skyscrapers have increased the level of trade in the city, and the impact on trade has an optimal height.

Research limitations/implications

This paper focuses on the economic and trade effects of skyscrapers, and the optimal height of skyscrapers needs to be discussed in more depth, which is also the next problem the researchers need to study.

Practical implications

The government should attach importance to and promote the construction of urban skyscrapers, and do a good job in overall planning and design. The city should formulate preferential policies in land, taxation, finance, system and other aspects to increase support for urban skyscraper construction and promote local economic development.

Originality/value

This study focuses on the impact of urban skyscraper construction on the economic and trade development of cities in developing countries, which not only complements the relevant research on the economic effects of urban skyscraper construction, but also helps to provide reference for the sustainable development of urbanization in many developing countries.

Details

Kybernetes, vol. 53 no. 4
Type: Research Article
ISSN: 0368-492X

Keywords

Article
Publication date: 22 December 2021

Lei Shen, Cong Sun and Muhammad Ali

This study examines the factors that influence the improvement of the consumer goods sector in three dimensions (technology, internal factors and external environment) for…

Abstract

Purpose

This study examines the factors that influence the improvement of the consumer goods sector in three dimensions (technology, internal factors and external environment) for exploring the upgrading paths of Shanghai's consumer goods industry.

Design/methodology/approach

This paper targeted eight sub-industries of consumer goods as case studies, including food processing, and investigated from qualitative and quantitative perspectives using the technology-organization-environment (TOE) framework.

Findings

The study confirms the diversity of paths to promote the upgrading of the consumer goods industry in Shanghai, and three paths are summarized in this paper. The “human–environment” linkage upgrade path is to bring sufficient economic contribution to help industrial upgrading by expanding market share, and this path is suitable for large enterprises in the industry to adopt; the “internal factor aggregation” upgrading path is to strengthen the aggregation effect of resources, form industrial clusters and link high human aggregation with industrial aggregation to exert leverage to transform and upgrade the consumer goods industry, and this path is suitable for SMEs in the industry to adopt; the “technology–environment” linkage upgrade path is to use technological factors for product innovation to occupy a favorable market position, to obtain high economic returns and realize industrial upgrading under the joint action of technology and external environment, and this path is suitable for high-tech enterprises to adopt.

Originality/value

Shanghai still has a large area for growth toward foreign metropolises, under the backdrop of the strong development of new manufacturing. Also, to diversify their investment portfolio, the consumer goods industry should focus on population, job density and industrial growth while looking into industrial aggregation.

Details

International Journal of Emerging Markets, vol. 18 no. 10
Type: Research Article
ISSN: 1746-8809

Keywords

Article
Publication date: 17 October 2016

Stephen Brosnan, Eleanor Doyle and Sean O’Connor

The purpose of this paper is to offer clarity on a central concept introduced in Porter’s The Competitive Advantage of Nations, i.e. the cluster. The authors situate the concept…

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Abstract

Purpose

The purpose of this paper is to offer clarity on a central concept introduced in Porter’s The Competitive Advantage of Nations, i.e. the cluster. The authors situate the concept introduced by Porter (1990) relative to two of its antecedents, the industrial district and industrial complex. Placing the cluster in a historical context permits consideration of the extent to which it, as a concept for analysis, may be differentiated from other geography-based approaches to economic phenomena. In this way, this paper examines the added value of the cluster concept derived from economic factors.

Design/methodology/approach

The paper provides a detailed literature review tracing the evolution of theories of location and agglomeration into which Porter’s cluster fits. The evolution of Porter’s own conceptualisation of the cluster and how this relates to theoretical clarity surrounding the concept is explored. Comparative analysis of theories of location, agglomeration and clustering is provided to identify similarities and differences across the approaches and identify the added value of the cluster concept in relation to other approaches.

Findings

Clustering represents a process associated with spatial organisational form which may offer advantages in efficiency, effectiveness and flexibility. Cluster benefits can be appreciated through the lens of Young’s (1928) identified sources of increasing returns. A key aspect in clustering is revealed in terms of its role in enabling four sources of increasing returns. The authors outline how these sources of increasing returns are related to “soft” processes of networking, interaction and individual and collective learning. Porter’s Diamond is a self-reinforcing system which can permit increasing returns and reinforce such tendencies of economic activity within agglomerations.

Originality/value

Added value from Porter’s cluster concept is identified in the context of both its locational anchoring and in terms of its potential for understanding the role of exploitation of increasing returns for development. This points to the importance of focusing on clustering as a process rather than on cluster within typologies of organisational form. This implies that the nature of relationships (and how they change) within and across markets, institutions and actors lies at the heart of clustering because of their roles in knowledge-generation, including innovation, knowledge sharing and upgrading.

Details

Competitiveness Review, vol. 26 no. 5
Type: Research Article
ISSN: 1059-5422

Keywords

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