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Small worlds, inheritance networks and industrial clusters

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  • Mark J. O. Bagley

Abstract

The performance of firms within industrial clusters has been the subject of a multitude of studies. The organizational attributes inherited by spinoffs from parent firms is one explanation behind performance premiums. This paper examines the relationship between a spinoff’s network and its geographic location in an industrial cluster. We hypothesize that there is a negative relationship between a spinoff’s network efficiency and its distance from the cluster’s centroid. Although recent literature infers that the transmission of knowledge in industrial clusters is accomplished via inherited network ties, this has not been directly measured. This paper aims to fill that research gap. We find that, after controlling for firm size, parent size and age, there is indeed a statistically significant and negative relationship between network efficiency and geographic distance to a cluster’s core.

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  • Mark J. O. Bagley, 2019. "Small worlds, inheritance networks and industrial clusters," Industry and Innovation, Taylor & Francis Journals, vol. 26(7), pages 741-768, August.
    • Handle: RePEc:taf:indinn:v:26:y:2019:i:7:p:741-768
    DOI: 10.1080/13662716.2018.1539650
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    Cited by:

    1. Mark J. O. Bagley, 2019. "Networks, geography and the survival of the firm," Journal of Evolutionary Economics, Springer, vol. 29(4), pages 1173-1209, September.
    2. Telma Mendes & Carina Silva & Alexandra Braga, 2023. "Dancing with Giants: A Unified Framework for Cooperation Networks, Speed of Internationalisation, and Performance," Sustainability, MDPI, vol. 15(3), pages 1-32, January.
    3. Tamás Lahdelma, 2022. "Localized labor flow networks in knowledge‐intensive industries," Journal of Regional Science, Wiley Blackwell, vol. 62(5), pages 1414-1441, November.
    4. Nils Grashof & Dirk Fornahl, 2020. "To be or not to be located in a cluster? A descriptive meta-analysis of the firm-specific cluster effect," Working Papers on Innovation and Space 2020-01, Philipps University Marburg, Department of Geography.
    5. Nils Grashof & Dirk Fornahl, 2021. "“To be or not to be” located in a cluster?—A descriptive meta-analysis of the firm-specific cluster effect," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 67(3), pages 541-591, December.

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