Conference proceeding
Resource-Seeking Agglomeration
Academy of Management Best Conference Papers, Vol.2003(1), pp.S1-S6
08/2003
DOI: 10.5465/ambpp.2003.13793206
Abstract
This article analyzes whether firms prefer collocating with incumbent firms when choosing among markets to enter, highlighting the role of resource-seeking as a motivation for collocation. In this article, the researchers hypothesized that firms often prefer to enter markets with many existing firms because they seek resources that spill over from those incumbents. The researchers argued that heterogeneous resources of both the entering firms and the markets that they enter play a role in location choices. Previous work only considered firm heterogeneity. The researchers found that high-resource firms avoid markets with high counts of incumbent firms, but only when those incumbents were primarily low-resource firms. When a market included high counts of high-resource firms, the researchers found that the market attracted high-resource entrants. Overall, the researchers' findings show a general trend towards clustering of firms. However, the fact that the high-resource firms avoid their low-resource counterparts suggests an interesting intermediary dynamic. High-resource firms will collocate with others like themselves. But this collocation will also attract low-resource firms, which in turn, makes the market less attractive for further high-resource entrants.
Details
- Title: Subtitle
- Resource-Seeking Agglomeration
- Creators
- Arturs Kalnins - University of Southern CaliforniaWilbur Chung - University of Pennsylvania
- Resource Type
- Conference proceeding
- Publication Details
- Academy of Management Best Conference Papers, Vol.2003(1), pp.S1-S6
- DOI
- 10.5465/ambpp.2003.13793206
- ISSN
- 0065-0668
- eISSN
- 2151-6561
- Language
- English
- Date published
- 08/2003
- Academic Unit
- Management and Entrepreneurship
- Record Identifier
- 9984380591702771
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