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Are all startups affected similarly by clusters? Agglomeration, competition, firm heterogeneity, and survival

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  • Pe'er, Aviad
  • Keil, Thomas

Abstract

Are all startups similarly affected by the survival benefits and drawbacks of locating in geographic clusters? In this paper, we argue that prior theorizing may have missed important contingencies that affect whether a startup experiences the benefits and costs of locating in a cluster. In particular, while the local levels of skilled labor, suppliers, and purchasers have a beneficial influence and local competition has a detrimental influence on startup survival, these relationships are moderated by heterogeneity in firms' resources and capabilities. We find support for these arguments using a dataset covering the early life of all independent startups in the Canadian manufacturing sector from 1984 to 1998.

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  • Pe'er, Aviad & Keil, Thomas, 2013. "Are all startups affected similarly by clusters? Agglomeration, competition, firm heterogeneity, and survival," Journal of Business Venturing, Elsevier, vol. 28(3), pages 354-372.
  • Handle: RePEc:eee:jbvent:v:28:y:2013:i:3:p:354-372
    DOI: 10.1016/j.jbusvent.2012.03.004
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    1. repec:eee:jbrese:v:86:y:2018:i:c:p:41-52 is not listed on IDEAS
    2. Torre Dominique & Dominique Dufour & Eric Nasica, 2016. "Clusters et efficacité du capital-risque : une analyse des stratégies différenciées des fonds indépendants et des fonds industriels," Post-Print halshs-01576777, HAL.
    3. David B. Audretsch & Erik E. Lehmann & Matthias Menter, 2016. "Public cluster policy and new venture creation," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 43(4), pages 357-381, December.
    4. repec:kap:sbusec:v:50:y:2018:i:3:d:10.1007_s11187-017-9912-4 is not listed on IDEAS
    5. repec:spr:scient:v:112:y:2017:i:1:d:10.1007_s11192-017-2391-1 is not listed on IDEAS
    6. Tobias Ebert & Thomas Brenner & Udo Brixy, 2015. "New Firm Survival: The Interdependence between Regional Externalities and Innovativeness," Working Papers on Innovation and Space 2015-05, Philipps University Marburg, Department of Geography.
    7. Salvador Vivas-López & Francisco Puig & Victor Oltra & Miguel González-Loureiro, 2016. "Globalized Markets and Startup Dynamics in Mature Manufacturing Industries," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 7(4), pages 947-962, December.
    8. Hervas-Oliver,Jose-Luis & Sempere-Ripoll,Francisca, 2014. "Agglomerations and firm performance: how does it work, who benefits and how much?," INGENIO (CSIC-UPV) Working Paper Series 201411, INGENIO (CSIC-UPV), revised 01 Dec 2014.
    9. Hervas Oliver,Jose Luis & Gonzalez,Gregorio & Caja,Pedro, 2014. "Clusters and industrial districts: where is the literature going? Identifying emerging sub-fields of research," INGENIO (CSIC-UPV) Working Paper Series 201409, INGENIO (CSIC-UPV).

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    Keywords

    Cluster; Agglomeration; Resource; Capability; Survival;

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