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The inert firm; why old firms show a stickiness to their location

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  • Aleid E. Brouwer

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    Abstract

    This paper investigates the tendency of older firms to show stickiness to their home-region or fixed location, with the increase of age (in years since founding), as found in earlier research. Empirical evidence supporting this argument is found from a telephone survey under the population of old firms in the Netherlands. In the current paper an analysis is done to determine which other firm characteristics -next to age in years-, influence this stickiness to place; such as innovative behaviour, network relationships, market, size (in number of employees), region and location type. This analysis is done on written questionnaires of 179 firms in the Netherlands, 37 of these firms are specifically labelled as ‘old firms’ (founded before 1851). Tested is whether inert behaviour, which according to the theory of structural inertia increases with age, also has an influence on the location of firms. Furthermore, the relationship between the spatial environment and other firm characteristics is investigated.

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    Bibliographic Info

    Paper provided by European Regional Science Association in its series ERSA conference papers with number ersa04p165.

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    Date of creation: Aug 2004
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    Handle: RePEc:wiw:wiwrsa:ersa04p165

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    1. Fariborz Damanpour, 2001. "The Dynamics of the Adoption of Product and Process Innovations in Organizations," Journal of Management Studies, Wiley Blackwell, vol. 38(1), pages 45-65, 01.
    2. Geroski, P A, 2001. "Exploring the Niche Overlaps between Organizational Ecology and Industrial Economics," Industrial and Corporate Change, Oxford University Press, vol. 10(2), pages 507-40, June.
    3. Aleid E. Brouwer & Ilaria Mariotti & Jos N. van Ommeren, 2004. "The firm relocation decision: An empirical investigation," The Annals of Regional Science, Springer, vol. 38(2), pages 335-347, 06.
    4. Dosi, Giovanni, et al, 1997. "Industrial Structures and Dynamics: Evidence, Interpretations and Puzzles," Industrial and Corporate Change, Oxford University Press, vol. 6(1), pages 3-24.
    5. Ron A. Boschma & Jan G. Lambooy, 1999. "Evolutionary economics and economic geography," Journal of Evolutionary Economics, Springer, vol. 9(4), pages 411-429.
    6. Foray, Dominique, 1997. "The dynamic implications of increasing returns: Technological change and path dependent inefficiency," International Journal of Industrial Organization, Elsevier, vol. 15(6), pages 733-752, October.
    7. Dosi, Giovanni, 1990. "Finance, innovation and industrial change," Journal of Economic Behavior & Organization, Elsevier, vol. 13(3), pages 299-319, June.
    8. Olav Sorenson, 2003. "Interdependence and Adaptability: Organizational Learning and the Long--Term Effect of Integration," Management Science, INFORMS, vol. 49(4), pages 446-463, April.
    9. Pellenbarg, P.H. & Kemper, N.J., 1999. "Industrial mobility in the Netherlands : patterns, causes and impacts for spatial policy," Research Report 99D34, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
    10. Piet H. Pellenbarg & Paul J. M. van Steen, 2003. "The Netherlands in Maps," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 94(3), pages 420-420, 08.
    11. Aleid E. Brouwer, 2003. "An empirical study on the relationship between the spatial environment and the survival of old firms in the Netherlands," ERSA conference papers ersa03p108, European Regional Science Association.
    12. Dosi, Giovanni, 1982. "Technological paradigms and technological trajectories : A suggested interpretation of the determinants and directions of technical change," Research Policy, Elsevier, vol. 11(3), pages 147-162, June.
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    Cited by:
    1. Jan Ženka & Vladislav Čadil, 2009. "Regional distribution of technology-intensive manufacturing industries in the czech republic with an accent on risk of delocalisation," Prague Economic Papers, University of Economics, Prague, vol. 2009(1), pages 61-77.

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