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Expanding location advantages from agglomeration: a legitimacy perspective of global location portfolios in the electric vehicle industry

Author

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  • Sylvaine Castellano
  • Adnane Maalaoui
  • Aubry Springuel

Abstract

In complex and uncertain environments, firms seek alternative ways to conform to stakeholders' expectations and gain legitimacy. While some studies emphasise the benefits of agglomeration (territorial anchorage), others explain the advantages of location in different environments (nomadic approach) as a legitimation means. The present article aims to study the advantages of firms' multi-localisation. We employ an integrative approach and explore the case of Better Place, a new venture evolving in the electric car industry. We demonstrate that firms employ both territorial anchorage and a nomadic approach as a means to gain their legitimacy. Based on: 1) the balance between territorial anchorage and nomadism; 2) the dynamic capabilities of the firm, we find that firms develop four types of legitimacy strategies: new venture; multi-localised; spillover; and institutional strategy. A nomadic approach of a firm with multi-located anchorage enables legitimation dynamics through local and global stakeholders.

Suggested Citation

  • Sylvaine Castellano & Adnane Maalaoui & Aubry Springuel, 2015. "Expanding location advantages from agglomeration: a legitimacy perspective of global location portfolios in the electric vehicle industry," International Journal of Entrepreneurship and Innovation Management, Inderscience Enterprises Ltd, vol. 19(5/6), pages 343-362.
    • Handle: RePEc:ids:ijeima:v:19:y:2015:i:5/6:p:343-362
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    Cited by:

    1. Castellano, Sylvaine & Khelladi, Insaf & Sorio, Rossella & Orhan, Mehmet & Kalisz, David, 2021. "Exploring the microfoundations of nomadic dynamic capabilities: The example of flying winemakers," Technological Forecasting and Social Change, Elsevier, vol. 163(C).
    2. Poponi, Stefano & Piovesan, Gianluca & Fulco, Irene & Vessella, Federico, 2022. "Geolocation of mountain businesses: Identifying and characterizing clusters by altitude in the Central Apennines," Land Use Policy, Elsevier, vol. 120(C).

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