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On the Shoulders of Giants: Co-location with Dominant Firms in the Emerging Fiber Optics Industry

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Author Info
Donald Hatfield
William Lamb
Linda Tegarden
Abstract

In this study we investigate the location choices of start-ups and established firms relative to dominant firms in the US fiber optics industry from 1976 to 1994. We test the propensity to co-locate with dominant firms and whether proximity to a dominant firm impacts the strategic choices made by start-ups and established firms. Contrary to our predictions, we find that both start-ups and established firms are equally likely to co-locate with dominant firms. We also find that start-ups exhibit greater new product adoption rates and greater product-line breadth than established firms. This implies that start-ups are relatively more likely to realize greater strategic gains with entry into emerging markets.

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File URL: http://www.informaworld.com/openurl?genre=article&doi=10.1080/13662710701711273&magic=repec&7C&7C8674ECAB8BB840C6AD35DC6213A474B5
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Publisher Info
Article provided by Taylor and Francis Journals in its journal Industry & Innovation.

Volume (Year): 14 (2007)
Issue (Month): 5 ()
Pages: 445-460
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Handle: RePEc:taf:indinn:v:14:y:2007:i:5:p:445-460

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Related research
Keywords: Emerging technology strategic location choice dominant and startup firms innovations

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