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Are all startups affected similarly by clusters? Agglomeration, competition, firm heterogeneity, and survival


Pe'er, Aviad; Keil, Thomas (2013). Are all startups affected similarly by clusters? Agglomeration, competition, firm heterogeneity, and survival. Journal of Business Venturing, 28(3):354-372.

Abstract

Are all startups similarly affected by the survival benefits and drawbacks of locating in geographic clusters? In this paper, we argue that prior theorizing may have missed important contingencies that affect whether a startup experiences the benefits and costs of locating in a cluster. In particular, while the local levels of skilled labor, suppliers, and purchasers have a beneficial influence and local competition has a detrimental influence on startup survival, these relationships are moderated by heterogeneity in firms' resources and capabilities. We find support for these arguments using a dataset covering the early life of all independent startups in the Canadian manufacturing sector from 1984 to 1998.

Abstract

Are all startups similarly affected by the survival benefits and drawbacks of locating in geographic clusters? In this paper, we argue that prior theorizing may have missed important contingencies that affect whether a startup experiences the benefits and costs of locating in a cluster. In particular, while the local levels of skilled labor, suppliers, and purchasers have a beneficial influence and local competition has a detrimental influence on startup survival, these relationships are moderated by heterogeneity in firms' resources and capabilities. We find support for these arguments using a dataset covering the early life of all independent startups in the Canadian manufacturing sector from 1984 to 1998.

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Additional indexing

Item Type:Journal Article, refereed, original work
Communities & Collections:03 Faculty of Economics > Department of Business Administration
Dewey Decimal Classification:330 Economics
Language:English
Date:1 January 2013
Deposited On:04 Feb 2014 15:24
Last Modified:08 Dec 2017 03:09
Publisher:Elsevier
ISSN:0883-9026
Publisher DOI:https://doi.org/10.1016/j.jbusvent.2012.03.004
Other Identification Number:merlin-id:9085

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