Location: A Neglected Determinant of Firm Growth

Audretsch, David B.; Dohse, Dirk

doi:10.1007/s10290-007-0099-7

Cited by 136 publications

(57 citation statements)

References 29 publications

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“…Research which expands beyond the industry has focused largely on HGF activity in one country (see Bornhäll et al 2015;Siepel et al 2015;Bos and Stam 2014;Garcia and Puente 2012;Hölzl 2011;Falkenhall and Junkka 2009;Moreno and Casillas 2007;Littunen and Tohmo 2003), one region (Desai and Motoyama 2015;Mason and Brown 2010) or one or a few sectors (Siepel et al 2015;Coad and Rao 2008;Littunen and Tohmo 2003). Some comparative empirical research has shown that region-specific characteristics, like industrial diversity, agglomeration economies and employment (Bogas and Barbosa 2013;Audretsch and Dohse 2007), play an important role in explaining the variance in HGF activity across regions. This indicates that variation at the regional or supraregional levels of analysis is an important question.…”

Section: Theoretical Foundationmentioning

confidence: 97%

Institutional drivers of high-growth firms: country-level evidence from 26 transition economies

2016

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High-growth firms (HCF) represent a highly desirable subset of firms, which provide disproportionate economic gains, and greater insight into their determinants which is of interest to policymakers, scholars and business owners. We contribute to the literature on HGFs, which is largely absent of cross-national institutional studies, by examining the institutional conditions driving HGFs in 26 transition countries over a long period comprising three panels between 1998 and 2009. Using an institutional hierarchy approach, we test for the influence of formal and informal institutions on HGF prevalence in countries. Our analysis relies first on a principal component analysis to identify institutional factors. Second, we use GLS estimation to test the influence of these three factors on HGF prevalence in a country, followed by a robustness check. Our results show that interaction effects, rather than direct effects, are useful in explaining systematic variations in HGFs prevalence in transition economies. We find that the interaction between formal and informal institutions positively influences HGFs. Further, we find that in fast-reforming transition economies, more burdensome formal institutions discourage HGFs but in slowreforming transition economies, informal institutions encourage HGFs.

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Section: Theoretical Foundationmentioning

confidence: 97%

Institutional drivers of high-growth firms: country-level evidence from 26 transition economies

2016

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“…Conversely, depressed rates of local employment and income are likely to reduce the performance of firms, as well as reducing alternative employment opportunities (Gimeno et al 1997;Fotopoulos and Louri 2000;Audretsch and Dohse 2007). Thus, local economic conditions influence both the performance of enterprises and the threshold of performance through the outside options available (Figure 2).…”

Section: Silva and Mccomb 2012)mentioning

confidence: 99%

Entrepreneurship and the determinants of firm survival within regions: human capital, growth motivation and locational conditions

Huggins

Prokop

Thompson

2017

Entrepreneurship & Regional Development

115

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Despite a growing body of research on firm survival, little is known about the factors impacting upon survival rates at a micro-spatial level. This study, therefore, analyses firm survival across local environments in the context of a peripheral region; namely, the case of Wales in the UK. It examines how theories relating to human capital, growth motivation and locational conditions may explain survival within a region. Drawing on data of survival patterns for a cohort of firms, it is found that each of the three theories at least partly explain firm survival, with it being clear that human capital relating to the experience of entrepreneurs, as well as the growth motivation of their firms resulting from the strategic choices they make, impact upon rates of survival. It is also found that the local environment contributes to the likelihood of its survival. In particular, it is found that locational factors have a potential influence on the human capital allocated to enterprise, as well as how this capital is utilised via growth motivation. This suggests that not only do locational factors contribute to differing rates of entrepreneurship, but that such factors also impact on the durability of firms over time. Abstract Despite a growing body of research on firm survival, little is known about the factors impacting upon survival rates at a micro-spatial level. This study, therefore, analyses firm survival across local environments in the context of a peripheral region; namely, the case of Wales in the UK. It examines how theories relating to human capital, growth motivation and locational conditions may explain survival within a region. Drawing on data of survival patterns for a cohort of firms, it is found that each of the three theories at least partly explain firm survival, with it being clear that human capital relating to the experience of entrepreneurs, as well as the growth motivation of their firms resulting from the strategic choices they make, impact upon rates of survival. It is also found that the local environment contributes to the likelihood of its survival. In particular, it is found that locational factors have a potential influence on the human capital allocated to enterprise, as well as how this capital is utilised via growth motivation. This suggests that not only do locational factors contribute to differing rates of entrepreneurship, but that such factors also impact on the durability of firms over time.

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“…Furthermore, little is known about the impact of location on the growth of firms (Acs and Armington 2004;Audretsch and Dohse 2007;St-Jean et al 2008; Barbosa and Eiriz 2011;Bogas and Barbosa 2013). There are some studies that analyse the location of HGFs at regional level or in urban areas (Acs and Mueller 2008) although there is still not enough evidence about the influence of spatial agglomeration areas on the location of HGFs.…”

Section: Introductionmentioning

confidence: 98%

“…A review of the literature on HGFs Location as a factor in the development of high-growth firms Location is considered an influential factor in the development of HGFs as this process can depend on the characteristics of the geographical environment (Acs and Armington 2004;Hoogstra and van Dijk 2004;Audretsch and Dohse 2007;St-Jean et al 2008;Barbosa and Eiriz 2011;Bogas and Barbosa 2013).…”

Section: Introductionmentioning

confidence: 99%

High-growth firms: does location matter?

2016

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The challenge for economies lies in boosting employment growth, not just by fostering entrepreneurship, but also by improving the growth potential of existing firms. Consequently, many studies have focused on assessing the dynamism of firms, and especially the capacity of high-growth firms (HGFs) to generate employment. This study aimed to identify HGFs in Spain during two periods, 2003-2006 and 2007-2010 and to analyse their characteristics and territorial distribution during the initial years of the economic crisis. Accordingly, a key area of inquiry of the study was the influence of agglomeration (in metropolitan areas, industrial districts and technological districts) on the locations of HGFs. To analyse the influence of location on the probability of firms being HGFs, a logit model was estimated. The main results supported the study's hypotheses that technological districts and large urban areas are significantly associated with the probability of firms being HGFs, because firms profit from comparative locational advantages offered by these areas. The importance of HGFs requires special emphasis in relation to Spain's context of economic crisis and high unemployment levels because of their significant contribution to employment generation.

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Location: A Neglected Determinant of Firm Growth

Abstract: Agglomeration, knowledge resources, firm growth,

Cited by 136 publications

References 29 publications

Institutional drivers of high-growth firms: country-level evidence from 26 transition economies

Institutional drivers of high-growth firms: country-level evidence from 26 transition economies

Entrepreneurship and the determinants of firm survival within regions: human capital, growth motivation and locational conditions

High-growth firms: does location matter?

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