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A Process Model of Locational Change in Entrepreneurial Firms: An Evolutionary Perspective

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  • Erik Stam

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Abstract

How do changes in the spatial organization of entrepreneurial firms come about? This paper provides a conceptualisation of the process of locational change. A process model of locational change is constructed on the basis of an empirical study of 109 locational events during the life course of 25 young firms in knowledge intensive sectors (knowledge services and biomedicals). This process model of locational change maps both internal and external variation and selection processes. This model contributes to the development of a causal process theory of the spatial development of (new) firms.

Suggested Citation

  • Erik Stam, 2006. "A Process Model of Locational Change in Entrepreneurial Firms: An Evolutionary Perspective," Papers in Evolutionary Economic Geography (PEEG) 0604, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Mar 2006.
  • Handle: RePEc:egu:wpaper:0604
    as

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    File URL: http://econ.geo.uu.nl/peeg/peeg0604.pdf
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    References listed on IDEAS

    as
    1. Ron A. Boschma & Jan G. Lambooy, 1999. "Evolutionary economics and economic geography," Journal of Evolutionary Economics, Springer, vol. 9(4), pages 411-429.
    2. Krugman, Paul, 1998. "What's New about the New Economic Geography?," Oxford Review of Economic Policy, Oxford University Press, vol. 14(2), pages 7-17, Summer.
    3. Cohendet, Patrick, et al, 1999. "Knowledge Coordination, Competence Creation and Integrated Networks in Globalised Firms," Cambridge Journal of Economics, Oxford University Press, vol. 23(2), pages 225-241, March.
    4. Ulrich Witt, 1992. "Evolutionary Concepts in Economics," Eastern Economic Journal, Eastern Economic Association, vol. 18(4), pages 405-419, Fall.
    5. Masahisa Fujita & Paul Krugman & Anthony J. Venables, 2001. "The Spatial Economy: Cities, Regions, and International Trade," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262561476, January.
    6. John H Dunning, 1998. "Location and the Multinational Enterprise: A Neglected Factor?," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 29(1), pages 45-66, March.
    7. Stam, Erik & Schutjens, Veronique, 2000. "Locational Behaviour Of Young Firms: A Life Course Perspective," ERSA conference papers ersa00p56, European Regional Science Association.
    8. Oliver D. Hart, 1983. "The Market Mechanism as an Incentive Scheme," Bell Journal of Economics, The RAND Corporation, vol. 14(2), pages 366-382, Autumn.
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    12. Simon, Herbert A, 1979. "Rational Decision Making in Business Organizations," American Economic Review, American Economic Association, vol. 69(4), pages 493-513, September.
    13. Richardson, G B, 1972. "The Organisation of Industry," Economic Journal, Royal Economic Society, vol. 82(327), pages 883-896, September.
    14. Stuart, Toby & Sorenson, Olav, 2003. "The geography of opportunity: spatial heterogeneity in founding rates and the performance of biotechnology firms," Research Policy, Elsevier, vol. 32(2), pages 229-253, February.
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    More about this item

    Keywords

    location; entrepreneurial firms; evolutionary theory; decision-making; process models;

    JEL classification:

    • L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • M - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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