Spatial Concentration of Industries and New Firm Exits: Does this Relationship Differ between Exits by Closure and by M&A?

Regional Studies

Volumn 49, Issue 1, 2015, Pages 44-58

  Weterings, Anet ^a   Marsili, Orietta ^b  

^a PBL NETHERLANDS ENVIRONMENTAL ASSESSMENT AGENCY   (Netherlands)

^b ERASMUS UNIVERSITY   (Netherlands)

Author keywords

Competing risks model; Firms' exit; Localization economies; Mergers and acquisitions (M As); Regional density

Indexed keywords

BUSINESS; ECONOMETRICS; INDUSTRIAL COMPETITION; MANUFACTURING; NUMERICAL MODEL; REGIONAL ECONOMY; SPATIAL ANALYSIS;

EID: 84919677829     PISSN: 00343404     EISSN: 13600591     Source Type: Journal    
DOI: 10.1080/00343404.2012.726708     Document Type: Article

References (38)

1. Allison, P.D. (1982) Discrete-time methods for the analysis of event histories. Sociological Methodology, 13, 61–98. doi: 10.2307/270718
2. Buehler, S., Kaiser, C. and Jaeger, F. (2006) Merge or fail? The determinants of mergers and bankruptcies in Switzerland, 1995–2000. Economics Letters, 90(1), 88–95. doi: 10.1016/j.econlet.2005.07.010
3. Caroll, G.R. and Hannan, M.T. (1989) Density dependence in the evolution of populations of newspaper organizations. American Sociological Review, 54(4), 524–541. doi: 10.2307/2095875
4. Cefis, E. and Marsili, O. (2012) Going, going, gone. Exit forms and the innovative capabilities of firms. Research Policy, 41(5), 795–807. doi: 10.1016/j.respol.2012.01.006
5. Coff, R.W. (1999) How buyers cope with uncertainty when acquiring firms in knowledge-intensive industries. caveat emptor, Organization Science, 10(2), 144–161. doi: 10.1287/orsc.10.2.144
6. Delgado, M., Porter, M.E. and Stern, S. (2010) Clusters and entrepreneurship. Journal of Economic Geography, 10(4), 1–24. doi: 10.1093/jeg/lbq010
7. Detienne, D. (2010) Entrepreneurial exit as a critical component of the entrepreneurial process: theoretical development. Journal of Business Venturing, 25, 203–215. doi: 10.1016/j.jbusvent.2008.05.004
8. Falck, O. (2007) Survival chances of new businesses: do regional conditions matter?. Applied Economics, 39(16), 2039–2048. doi: 10.1080/00036840600749615
9. Folta, T.B., Cooper, A.C. and Baik, Y. (2006) Geographic cluster size and firm performance. Journal of Business Venturing, 21, 217–242. doi: 10.1016/j.jbusvent.2005.04.005
10. Fontana, R. and Nesta, L. (2009) Product innovation and survival in a high-tech industry. Review of Industrial Organization, 34, 287–306. doi: 10.1007/s11151-009-9210-7
11. Freeman, J., Caroll, G.R. and Hannan, M.T. (1983) The liability of newness: age dependence in organizational death rates. American Sociological Review, 48, 692–710. doi: 10.2307/2094928
12. Fritsch, M., Brixy, U. and Falck, O. (2006) The effect of industry, region and time on new business survival: a multi-dimensional analysis. Review of Industrial Organization, 28, 285–306. doi: 10.1007/s11151-006-0018-4
13. Geroski, P.A., Mata, J. and Portugal, P. (2010) Founding conditions and the survival of new firms. Strategic Management Journal, 31(5), 510–529.
14. Graebner, M.K., Eisenhardt, M. and Roundy, P.T. (2010) Success and failure in technology acquisitions: lessons for buyers and sellers. Academy of Management Perspectives, 24(3), 73–92. doi: 10.5465/AMP.2010.52842952
15. Graham, D.J. (2009) Identifying urbanization and localization externalities in manufacturing and service industries. Papers in Regional Science, 88(1), 63–84. doi: 10.1111/j.1435-5957.2008.00166.x
16. Hannan, M. and Freeman, J. (1984) Structural inertia and organizational change. American Sociological Review, 49, 149–164. doi: 10.2307/2095567
17. Harada, N. (2007) Which firms exit and why? An analysis of small firm exits in Japan. Small Business Economics, 29(4), 401–414. doi: 10.1007/s11187-006-9001-6
18. Headd, B. (2003) Redefining business success: distinguishing between closure and failure. Small Business Economics, 21(1), 51–61. doi: 10.1023/A:1024433630958
19. Helfat, C. and Lieberman, M.B. (2002) The birth of capabilities: market entry and the importance of pre-history. Industrial and Corporate Change, 11(4), 725–760. doi: 10.1093/icc/11.4.725
20. Jenkins, S.P. (1995) Easy estimation methods for discrete-time duration models. Oxford Bulletin of Economics and Statistics, 57(1), 129–138. doi: 10.1111/j.1468-0084.1995.tb00031.x
21. Jenkins, S.P. (2005) Survival analysis. Unpublished manuscript. Institute for Social and Economic Research, University of Essex, Colchester (available at: http://www.iser.essex.ac.uk/teaching/degree/stephenj/ec968/pdfs/ec968lnotesv6.pdf)
22. Klepper, S. (2010) The origin and growth of industry clusters: the making of Silicon Valley and Detroit. Journal of Urban Economics, 67, 15–32. doi: 10.1016/j.jue.2009.09.004
23. Koeke, J. (2002) Determinants of acquisition and failure: evidence from corporate Germany. Structural Change and Economic Dynamics, 13(4), 457–484. doi: 10.1016/S0954-349X(02)00024-3
24. McCann, B.T. and Folta, T.B. (2008) Location matters: where we have been and where we might go in agglomeration research. Journal of Management, 34(3), 532–565. doi: 10.1177/0149206308316057
25. Muller, E. and Doloreux, D. (2007) The Key Dimensions of Knowledge-Intensive Business Services (KIBS) Analysis: A Decade of Evolution, Working Papers on Firms and Regions Number U1/2007. Fraunhofer ISI, Karlsruhe
26. Ranft, A.L. and Lord, M.D. (2002) Acquiring new technologies and capabilities: a grounded model of acquisition implementation. Organization Science, 13(4), 420–441. doi: 10.1287/orsc.13.4.420.2952
27. Schary, M.A. (1991) The probability of exit. RAND Journal of Economics, 22(3), 339–353. doi: 10.2307/2601051
28. Schenk, H. (2007) The merger paradox, in C. Wankel (Ed.), 21st Century Management. A Reference Handbook, Vol. I, 345–354. Sage, Los Angeles, CA
29. Shaver, J.M. and Flyer, F. (2000) Agglomeration economies, firm heterogeneity, and foreign direct investment in the Unites States. Strategic Management Journal, 21(12), 1175–1193. doi: 10.1002/1097-0266(200012)21:12<1175::AID-SMJ139>3.0.CO;2-Q
30. Sorenson, O. and Audia, P.G. (2000) The social structure of entrepreneurial activity: geographic concentration of footwear production in the United States, 1940–1989. American Journal of Sociology, 106(2), 424–462. doi: 10.1086/316962
31. Staber, U. (2001) Spatial proximity and firm survival in a declining industrial district: the case of knitwear firms in Baden-Wurttemberg. Regional Studies, 35(4), 329–341. doi: 10.1080/00343400125106
32. Steenbergen, M.R. and Jones, B.S. (2002) Modelling multilevel data structures. American Journal of Political Science, 46(1), 218–237. doi: 10.2307/3088424
33. Ter Wal, A.L. J. and Boschma, R.A. (2010) Co-evolution of firms, industries and network in space. Regional Studies, 45(7), 191–933.
34. Van Oort, F.G. (2004) Urban Growth and Innovation: Spatially Bounded Externalities in the Netherlands, Ashgate, Aldershot.
35. Wagner, S. and Cockburn, I. (2010) Patents and the survival of Internet-related IPOs. Research Policy, 39, 214–228. doi: 10.1016/j.respol.2009.12.003
36. Wennberg, K. and Lindqvist, G. (2010) The effect of clusters on the survival and performance of new firms. Small Business Economics, 34(3), 221–241. doi: 10.1007/s11187-008-9123-0
37. Wennberg, K., Wiklund, J., Detienne, D.R. and Cardon, M.S. (2010) Reconceptualizing entrepreneurial exit: divergent exit routes and their drivers. Journal of Business Venturing, 25, 361–375. doi: 10.1016/j.jbusvent.2009.01.001
38. Zucker, L.G. (1989) Combining institutional theory and population ecology: no legitimacy, no history. American Sociological Review, 54(4), 542–545. doi: 10.2307/2095876