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

Author

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  • 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.

Suggested Citation

  • Donald Hatfield & William Lamb & Linda Tegarden, 2007. "On the Shoulders of Giants: Co-location with Dominant Firms in the Emerging Fiber Optics Industry," Industry and Innovation, Taylor & Francis Journals, vol. 14(5), pages 445-460.
    • Handle: RePEc:taf:indinn:v:14:y:2007:i:5:p:445-460
    DOI: 10.1080/13662710701711273
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