Why do businesses grow faster in urban areas than in rural areas?

Lee, Jungho; Xu, Jianhuan

doi:10.1016/j.regsciurbeco.2020.103521

Cited by 7 publications

(7 citation statements)

References 35 publications

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“…Another characteristic of rural SMEs is that they are usually less competitive than their counterparts in urban cities. The high competition and operating cost of urban cities push less productive firms to exit in urban areas [88]. Consequently, firms based in rural are less likely to become international than firms established in first or second-tier cities [89].…”

Section: Accelerated Internationalization Institutions and The Localmentioning

confidence: 99%

“…First, the results offer guidance to policy makers interested in encouraging accelerated internationalization in countries characterized by formal institutional voids. SMEs in this context suffer from a number of disadvantages, such as an unsophisticated market, difficulty in accessing strategic resources, and lower specialization and competitiveness [17,88,122]. Therefore, policymakers need to develop strategies to promote the development of local informal institutions and co-creation activities by facilitating the innovation networks process.…”

Section: Policy and Managerial Implicationsmentioning

confidence: 99%

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The Fast Lane of Internationalization of Latin American SMEs: A Location-Based Approach

Gil-Barragan

López‐Sánchez

2021

Sustainability

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This paper examines how the institutional environment (from a multi-level approach) and the moderating role of innovation networks and rural location explain which mechanism (institutional fostering or escapism) underlies the phenomenon of accelerated internationalization of small and medium-sized enterprises. By analyzing a dataset of 2289 firms from Argentina, Colombia, and Peru, the results suggest that the access of strategic resources and capabilities may either reinforce an institutional fostering or institutional escapism effect. The findings show that institutional fostering is associated with formal institutional voids and rural location, while institutional escapism is associated with local informal institutions, corporate sustainability certifications, and innovation networks. The institutional escapism effect is higher for firms that have social or environmental certifications. Implications for theory and practice are discussed.

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Section: Accelerated Internationalization Institutions and The Localmentioning

confidence: 99%

Section: Policy and Managerial Implicationsmentioning

confidence: 99%

The Fast Lane of Internationalization of Latin American SMEs: A Location-Based Approach

Gil-Barragan

López‐Sánchez

2021

Sustainability

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“…Traditional methods of performance management training like one-on-one meetings and yearly evaluations are giving way to more tech-driven alternatives (Lee et al, 2020). Every person craves acknowledgement and praise for their efforts.…”

Section: Individual Attributesmentioning

confidence: 99%

Identification and Evaluation of Human Factors Affecting the Operational Performance of Innovation Hubs

Vijayakumar,

Davidova

2023

Acta Prosperitatis

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The research has been carried out to identify and evaluate the human factors affecting the operational performance of innovation hubs. The authors conduct a systematic review of relevant literatures and identify certain factors that found to affect the operating performance of Innovation hubs. Through a quantitative research methodology, such as a structured questionnaire, the authors gathered responses from HR experts in the form of an online survey. The survey responses were analyzed with the help of factor analysis, which helped the authors gather 2 components out of 14 survey variables. With the help of factor analysis, the authors developed a model for enhancing the operational performance of innovation hubs. The model can act as a template for further research in the field. Companies can utilize this model for enhancing the operational performances of their innovation hubs.

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“…Academia has been paying attention to entrepreneurial activities for a long time. In particular, since the dawn of the 21st century, innovation and entrepreneurial activities, as the driving forces of economic growth, have emerged as the core elements of productivity across the world due to the advent of the knowledge economy and information age led by the Internet and Information Technology [6][7][8]. Scholars have systematically explored entrepreneurial activities, including the environmental factors affecting them [9,10], the effects of entrepreneurial activities [11], the relationship between regional development models and entrepreneurial activities [12,13], entrepreneurial policies [14], the spatial distribution of entrepreneurial activities and their locational characteristics [15][16][17][18][19], and the interactive relationships between entrepreneurial activities and the evolution of local industrial clusters [20].…”

Section: Introductionmentioning

confidence: 99%

Spatiotemporal Evolution of Entrepreneurial Activities and Its Driving Factors in the Yangtze River Delta, China

Zhang

Chen

Liu

2022

Land

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The purpose of this paper is to reveal the spatiotemporal evolution of entrepreneurial activities in the local municipalities of the Yangtze River Delta at long timescales from a geographic perspective and to reveal the underlying factors driving such evolution. The ontology of entrepreneurial activities—startups—was chosen as the object of this study, and the developmental characteristics of entrepreneurial activities in the region since 2001 were explored in two dimensions: time series changes and spatial evolution. The driving mechanism was further explored using the geographical detector. The results showed that: (1) Intensive entrepreneurial activities have been underway in the Yangtze River Delta since the beginning of the 21st century. The entrepreneurial process has undergone a stable period of slow growth (2001–2013), as well as one of rapid growth (2014–2018). The number of startups increased during this period, from 241,700 in 2001 to 1,959,600 in 2018. (2) The density of entrepreneurial activities in the Yangtze River Delta has increased since 2001. The agglomerative patterns showed developmental trends of both concentration and diffusion, forming a dotted pattern of agglomeration centered on the provincial capitals of Nanjing, Hangzhou, and Hefei and a belt of agglomeration centered on Shanghai-Suzhou-Wuxi-Changzhou. (3) High-value agglomeration of entrepreneurial activities was found to be relatively stable, and low-value agglomeration steadily weakened. Shanghai, Suzhou, and Nantong have long been part of H-H clusters, while Chizhou, Wuhu, Bozhou, Huaibei, and Huainan in Anhui have become areas of depressed entrepreneurial activities. (4) Financial strength, degree of informationization, economic foundation, innovative vitality, openness, and market demand are the main factors affecting entrepreneurial activities in the Yangtze River Delta. Entrepreneurial activities have significant spatial correlation, and areas with high entrepreneurial vitality radiate their effect to the entrepreneurial activities in the surrounding areas. The factors affecting entrepreneurial activities have multiple characteristics, and policy makers should promote entrepreneurial activities with a comprehensive vision and multi-channel efforts. The findings of this study add to the understanding of the spatial proximity characteristics of long time series of entrepreneurial activities at the municipal scale in developing countries and reveal the characteristics of the multi-factor combinations affecting them.

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Why do businesses grow faster in urban areas than in rural areas?

Cited by 7 publications

References 35 publications

The Fast Lane of Internationalization of Latin American SMEs: A Location-Based Approach

The Fast Lane of Internationalization of Latin American SMEs: A Location-Based Approach

Identification and Evaluation of Human Factors Affecting the Operational Performance of Innovation Hubs

Spatiotemporal Evolution of Entrepreneurial Activities and Its Driving Factors in the Yangtze River Delta, China

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