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

Pe’er, Aviad; Keil, Thomas

doi:10.1016/j.jbusvent.2012.03.004

Cited by 107 publications

(87 citation statements)

References 105 publications

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“…Economic activities in recent decades tend to concentrate in specific geographic locations, often referred to as clusters (Pe'er & Keil, ). Regional developers and scholars have indiscriminately accepted the establishment of these clusters as an attractive strategy for sustaining and developing various industrial sectors (Tsang & Siu, ).…”

Section: Theoretical Backgroundmentioning

confidence: 99%

Industrial clusters in the developing economies: Insights from the Iranian carpet industry

et al. 2020

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Industrial clusters are perceived as potential drivers of small and medium‐sized enterprises development and efficient policy instruments to lead national and regional innovation and growth. However, these clusters in developing economies are typically placed in complex environments that impose a mix of serious challenges that adversely affect their overall performance. Therefore, this study aims to analyze the nature of these challenges and understand their dynamics using a case study of a carpet industry cluster in Iran. Using multiple sources of evidence, the study reveals two distinct, yet interrelated, levels of challenges: micro and macro. Under each level, a number of key dimensions were identified and theoretically linked which helped to conceptualize the structure of these challenges and model their dynamics.

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Section: Theoretical Backgroundmentioning

confidence: 99%

Industrial clusters in the developing economies: Insights from the Iranian carpet industry

et al. 2020

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“…In Europe and the U.S., the previously reviewed factors related to a firm's market entry or survival were translated into physical location characteristics, spatial concentration and diversification of industrial activities, and competition in accordance with industrial concentration, etc. (Basile et al, ; Buenstorf & Guenther, ; Cainelli et al, ; Görg & Strobl, ; Howell et al, ; Lopez‐Garcia & Puente, ; Neffke et al, ; Pe'er & Keil, ; Tavassoli & Jienwatcharamongkhol, ). However, the previous literature (Christie & Sjoquist, ; Falck, ) has stated that location and industrial features need to be reviewed more widely and in detail, because they could be relatively clear determinants of a firm's survival or duration.…”

Section: Literature Reviewmentioning

confidence: 99%

“…A mixed effects Cox model was employed as the empirical analysis model, being based on a semiparametric approach that does not previously define a particular formal probability distribution . The Cox model was widely used in studies on firm survival (Pe'er & Keil ; Renski, , ; Ryu et al, ; Sohns & Diez, ; Tavassoli & Jienwatcharamongkhol, ; Yi, ), and a mixed effects Cox model applied to this study is an advanced form of the conventional Cox model. The equation of the mixed effects Cox model including both fixed and random effects can be expressed as follows:

λ false(t false) = λ_{0} false(t false) e^{(X β + Z b)},

b \sim G (0, Σ (θ)),

…”

Section: Empirical Analysis Of the Survival Of Small Startupsmentioning

confidence: 99%

“…The key question in these studies is what factors affect the survival—in other words, closure or duration—of a firm, and studies have shown different results for various industrial sectors and countries . Additionally, previous empirical studies from various perspectives, in conjunction with not only location conditions but also urban and regional economics, have been recently published (Basile, Pittiglio, & Reganati, ; Cainelli, Montresor, & Marzetti, ; Geroski, Mata, & Pedro, ; Howell, He, Yang, & Cindy Fand, ; Low & Brown, ; Pe'er & Keil, ; Tavassoli & Jienwatcharamongkhol, ; Neffke, Henning, & Boschma, ).…”

Section: Introductionmentioning

confidence: 99%

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Interaction effects between the agglomerative externalities affecting the survival of small startups

Nam

2019

Growth and Change

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The purpose of this study is to identify the relationship between the survival of firms and the influence of agglomeration economies on firm location using a mixed effect Cox model considering random effects, given the industrial conditions of South Korea. Each agglomerative externality had a negative effect on the survival proportion of small startups except the related variety of the tertiary sector. However, the interaction effects between each externality and the location potential and among agglomerative externalities mostly played a complementary role to the survivability of startups; however certain effects reduced the survivability, and the effects were differentiated for each industrial sector. This study provides an advanced understanding of small firm performance after entry into the market in developing and developed nations.

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“…Interaction effects have e.g. been found for endowment with assets and human capital (PE'ER & KEIL, 2013), internationalization activities (PUIG et al, 2014) or company growth patterns (PE'ER et al, 2014).…”

Section: Evidence On New Firm Survivalmentioning

confidence: 99%

New firm survival: the interdependence between regional externalities and innovativeness

Ebert

Brenner

2018

Small Bus Econ

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in Abstract:This paper provides evidence that the effect of agglomeration externalities on survival is moderated by the start-up's innovative behavior. It is shown that localization externalities are prevalent particularly in non-high-tech environments and unfold a positive influence on survival for less innovative companies, while their highly innovative counterparts do not benefit or even suffer from spatial concentration. On the contrary, highly innovative high-tech start-ups benefit from a diverse economic structure which enhances their likelihood for survival by fostering the emergence of beneficial inter-industry spill-overs.

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

Cited by 107 publications

References 105 publications

Industrial clusters in the developing economies: Insights from the Iranian carpet industry

Industrial clusters in the developing economies: Insights from the Iranian carpet industry

Interaction effects between the agglomerative externalities affecting the survival of small startups

New firm survival: the interdependence between regional externalities and innovativeness

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