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Location advantage: Emergent and guided co-evolutions


  • Cuervo-Cazurra, Álvaro
  • de Holan, Pablo Martin
  • Sanz, Luis


We analyze how location advantage is created and developed at the country level. We argue that location advantage can be best understood as the result of the interaction between two distinct types of co-evolutionary processes: emergent, whereby location advantage is created as the result of agglomeration dynamics in product and factor markets; and guided, whereby location advantage is created as the result of infrastructure dynamics in institutions and endowments. We illustrate empirically the application of the co-evolutionary perspective and the differences between emergent and guided co-evolutionary processes with the analysis of the development of location advantage in the Costa Rican tourism industry.

Suggested Citation

  • Cuervo-Cazurra, Álvaro & de Holan, Pablo Martin & Sanz, Luis, 2014. "Location advantage: Emergent and guided co-evolutions," Journal of Business Research, Elsevier, vol. 67(4), pages 508-515.
  • Handle: RePEc:eee:jbrese:v:67:y:2014:i:4:p:508-515
    DOI: 10.1016/j.jbusres.2013.11.007

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    References listed on IDEAS

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    Cited by:

    1. repec:eee:jbrese:v:77:y:2017:i:c:p:95-101 is not listed on IDEAS
    2. Jiang, Shisong & Gong, Limin & Wang, Hua & Kimble, Chris, 2016. "Institution, strategy, and performance: A co-evolution model in transitional China," Journal of Business Research, Elsevier, vol. 69(9), pages 3352-3360.
    3. Mustafa Sakr & Andre Jordaan, 2017. "Foreign Market Selection of Emerging Multinational Corporations: Evidence from South African and Egyptian Corporations," Working Papers 201734, University of Pretoria, Department of Economics.


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