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Internal Management and Agglomeration in the Performance of Colombian Manufacturing Companies

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  • José Antonio Mola Ávila
  • Miguel Atienza Úbeda

Abstract

The study of agglomeration economies has traditionally neglected its relationship with a company’s management practices. Using Penrose’s (1959) resource—based theory and the general postulates regarding agglomeration economies, we show that the size of the agglomeration affects corporate management, the advantages of agglomeration economies depend on the quality and quantity of a company’s productive services, and that corporate performance reinforces agglomeration economies. In order to verify this, we estimate a structural equation model for the Colombian manufacturing industry for the time period between 1995 and 2014. We analyze the relationship between the level of agglomeration and companies´ management practices and how these affect profitability, value generation, and other performance related variables tied to management such as financing, liquidity and indebtedness.

Suggested Citation

  • José Antonio Mola Ávila & Miguel Atienza Úbeda, 2023. "Internal Management and Agglomeration in the Performance of Colombian Manufacturing Companies," Documentos Departamento de Economía 20745, Universidad del Norte.
    • Handle: RePEc:col:000383:020745
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