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What attracts high performance factories? Management culture and regional advantage

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  • Doeringer, Peter
  • Evans-Klock, Christine
  • Terkla, David

Abstract

National data and case studies are used to test the importance of management practices, particularly high performance practices, on the location decisions of new manufacturing plants. We find that plants with high performance management cultures rely on different criteria when making their location decisions, and also weigh standard location criteria differently, than those plants that are managed in more traditional ways. Omitting management culture from studies of business location may, therefore, result in biased estimates of the importance of various traditional location factors. By more accurately specifying location models for manufacturing plants with high performance management cultures, we are able to offer new insights for regional development policy.
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  • Doeringer, Peter & Evans-Klock, Christine & Terkla, David, 2004. "What attracts high performance factories? Management culture and regional advantage," Regional Science and Urban Economics, Elsevier, vol. 34(5), pages 591-618, September.
    • Handle: RePEc:eee:regeco:v:34:y:2004:i:5:p:591-618
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    Cited by:

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    4. Metaxas, Theodore & Kallioras, Dimitris, 2013. "Small and medium-sized firms' competitiveness and territorial characteristics/assets: The cases of Bari, Varna and Thessaloniki," MPRA Paper 52446, University Library of Munich, Germany.
    5. Wojan, Timothy R. & McGranahan, David A., 2007. "Ambient Returns: Creative Capital's Contribution to Local Manufacturing Competitiveness," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 36(1), pages 1-16, April.
    6. Alfredo Monte & Luca Pennacchio, 2020. "Historical roots of regional entrepreneurship: the role of knowledge and creativity," Small Business Economics, Springer, vol. 55(1), pages 1-22, June.
    7. Metaxas, Theodore & Economou, Athina, 2012. "Assessing the determinants of Firms’ Competitiveness in Greece: A Structural Equation Modeling Analysis," MPRA Paper 42794, University Library of Munich, Germany.
    8. Adam A. Millsap & Bradley K. Hobbs & Dean Stansel, 2019. "Local Governments and Economic Freedom: A Test of the Leviathan Hypothesis," Public Finance Review, , vol. 47(3), pages 493-529, May.
    9. Renato Redondi & Mariasole Bannò & Marco Mutinelli, 2011. "Air Connectivity and Foreign Direct Investments The economic effects of the introduction of new routes," ERSA conference papers ersa11p249, European Regional Science Association.
    10. Peter Doeringer & Christine Evans-klock & David Terkla, 2005. "Management cultures and regional development: High performance management and the location of new manufacturing plants," European Planning Studies, Taylor & Francis Journals, vol. 13(6), pages 815-830, September.
    11. Theodore METAXAS & Athina ECONOMOU, 2016. "Assesing The Determinantts Of Firms’ Competitiveness In Greece: A Structural Equation Modeling Analysys," Review of Economic and Business Studies, Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, issue 17, pages 91-113, June.

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    JEL classification:

    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

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