The regional concentration of industries and the performance of firms: a multilevel approach

Abstract

This paper presents the results of a study whose objective was to understand how location within industrial concentrations, like clusters or industrial districts, affects the financial performance of firms. In its theoretical framework, this paper attempts to introduce the reasons behind the alleged superior performance of firms located in these concentrations, the base of the hypothesis formulated in this study. Analysis from a three-level hierarchical linear model applied to a sample of 509 companies located in the state of São Paulo found no evidence that industrial concentrations provide firms with superior performance, contradicting expectations generated by the theory. The decomposition of the variance of performance indicated that the location of the firms and the form with which a city interacts with an industry exerts significant influence on how they will perform. In short, location matters to the future of firms. This finding underlines the need to understand how characteristics of cities or regions can promote or retard the performance of firms.

O Impacto dos Recursos do Desempenho Exportador de Empresas Pertencentes a Clusters: um estudo no setor vitivinícola francês

“…This result is consistent with the research results by Ferreira, Goldszmidt and Csillag (2010), who analyzed the relationship between the regional concentration of industries and superior performance. The results found by these authors indicate that the location of companies and how a city interacts with an industry have considerable influence on how they will perform.…”

“…However, Ferreira, Goldszmidt and Csillag (2010) provide evidence that partially contradict that statement. The authors identified that the influence of location on company performance may be higher or lower according to the location.…”

Industry Concentration and Growth in Philippine Agriculture

“…This result is supported by the studies of Swaminathan et.al (2015), Ferreira et. al (2010), Gabe (2008), Hollis (2003) and Yotopoulos and Nugent as cited by Holz (2010) who found insignificant relationships between industry concentration and economic performance; and linkage and growth nexus.…”

Determinan Pertumbuhan Sektor Industri Jawa Barat

“…(Changes and Migration, 2005) Dalam jangka panjang, industrialisasi sumber daya akan mentranspormasi sektor-sektor utama ekonomi yang dapat memenuhi kebutuhan masyarakatnya. Sehingga industri dapat menopang percepatan hasil produksi yang beriringan dengan bertumbuhnya kebutuhan masyarakat (Ferreira, Goldszmidt and Csillag, 2010).…”