Are All Startups Affected Similarly by Clusters? Agglomeration, Competition, Firm Heterogeneity, and Survival
affiliation not provided to SSRN
University of Zurich - Department of Business Administration
April 2, 2012
Journal of Business Venturing, Forthcoming
Are all startups similarly affected by the survival benefits and drawbacks of locating in geographic clusters? In this paper, we argue that prior theorizing may have missed important contingencies that affect whether a startup experiences the benefits and costs of locating in a cluster. In particular, while the local levels of skilled labor, suppliers, and purchasers have a beneficial influence and local competition has a detrimental influence on startup survival, these relationships are moderated by heterogeneity in firms’ resources and capabilities. We find support for these arguments using a dataset covering the early life of all independent startups in the Canadian manufacturing sector from 1984 to 1998.
Number of Pages in PDF File: 57
Keywords: cluster, agglomeration, survival, resource, capabilities
JEL Classification: M13, R10, L10
Date posted: April 4, 2012 ; Last revised: April 5, 2012
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