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No place like home? Relocation, capabilities, and firm survival in the German machine tool industry after World War II

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  • Guido Buenstorf
  • Christina Guenther

Abstract

We explore the extent to which organizational capabilities are location-specific by studying the location choices and longevity of East German machine tool producers that relocated to West Germany after World War II. Relocating firms were similar in performance to experienced West German incumbents; they outperformed new entrants without prewar industry experience. This suggests they were able to build on capabilities acquired before the war. Even though relocating firms tended lo locate in industry agglomerations and in urbanized regions, we find no evidence suggesting that firm performance benefited from agglomeration economies. Copyright 2011 The Author 2010. Published by Oxford University Press on behalf of Associazione ICC. All rights reserved., Oxford University Press.

Suggested Citation

  • Guido Buenstorf & Christina Guenther, 2011. "No place like home? Relocation, capabilities, and firm survival in the German machine tool industry after World War II," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 20(1), pages 1-28, February.
    • Handle: RePEc:oup:indcch:v:20:y:2011:i:1:p:1-28
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    File URL: http://hdl.handle.net/10.1093/icc/dtq055
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    Cited by:

    1. Martin Obschonka & Eva Schmitt-Rodermund & Rainer K. Silbereisen & Samuel D. Gosling & Jeff Potter, 2013. "The Regional Distribution and Correlates of an Entrepreneurship-Prone Personality Profile in the United States, Germany, and the United Kingdom: A Socioecological Perspective," SOEPpapers on Multidisciplinary Panel Data Research 550, DIW Berlin, The German Socio-Economic Panel (SOEP).
    2. repec:elg:eechap:14395_14 is not listed on IDEAS
    3. Sofie De Prijcker & Sophie Manigart & Veroniek Collewaert & Tom Vanacker, 2019. "Relocation to Get Venture Capital: A Resource Dependence Perspective," Entrepreneurship Theory and Practice, , vol. 43(4), pages 697-724, July.
    4. Oliver Falck & Christina Guenther & Stephan Heblich & William R. Kerr, 2013. "From Russia with love: the impact of relocated firms on incumbent survival," Journal of Economic Geography, Oxford University Press, vol. 13(3), pages 419-449, May.
    5. Thomas Brenner & Matthias Duschl, 2015. "Causal dynamic effects in regional systems of technological activities: a SVAR approach," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 55(1), pages 103-130, October.
    6. Krenz, Astrid, 2016. "Firm structure and the location decision of German manufacturing firms: Evidence from official firm-level data," University of Göttingen Working Papers in Economics 298, University of Goettingen, Department of Economics.
    7. Ron Boschma & Pierre-Alexandre Balland & Dieter Franz Kogler, 2015. "Relatedness and technological change in cities: the rise and fall of technological knowledge in US metropolitan areas from 1981 to 2010," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 24(1), pages 223-250.
    8. Andrea Morrison & Ron Boschma, 2019. "The spatial evolution of the Italian motorcycle industry (1893–1993): Klepper’s heritage theory revisited," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 28(3), pages 613-634.
    9. 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.
    10. Sándor Juhász, 2021. "Spinoffs and tie formation in cluster knowledge networks," Small Business Economics, Springer, vol. 56(4), pages 1385-1404, April.
    11. Alex Coad & Christina Guenther, 2012. "Age, diversification and survival in the German machine tool industry, 1953-2002," Papers on Economics and Evolution 2011-23, Philipps University Marburg, Department of Geography.
    12. Mathijs De Vaan & Ron Boschma & Koen Frenken, 2013. "Clustering and firm performance in project-based industries: the case of the global video game industry , 1972--2007," Journal of Economic Geography, Oxford University Press, vol. 13(6), pages 965-991, November.
    13. Koen Frenken & Elena Cefis & Erik Stam, 2020. "Industrial Dynamics and Clusters: A Survey," Regional Studies, Taylor & Francis Journals, vol. 49(1), pages 10-27, July.
    14. Alex Coad & Christina Guenther, 2013. "Diversification patterns and survival as firms mature," Small Business Economics, Springer, vol. 41(3), pages 633-649, October.
    15. Ron Boschma, 2015. "Do spinoff dynamics or agglomeration externalities drive industry clustering? A reappraisal of Steven Klepper’s work," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 24(4), pages 859-873.
    16. Alex Coad & Christina Guenther, 2014. "Processes of firm growth and diversification: theory and evidence," Small Business Economics, Springer, vol. 43(4), pages 857-871, December.
    17. Christian Garavaglia, 2012. "Spin-offs and clusters: the case of the swimwear manufacturers in the Oleggio industrial district," LIUC Papers in Economics 258, Cattaneo University (LIUC).
    18. Russell Golman & Steven Klepper, 2016. "Spinoffs and clustering," RAND Journal of Economics, RAND Corporation, vol. 47(2), pages 341-365, May.
    19. 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.
    20. Hervas Oliver,Jose Luis & Gonzalez,Gregorio & Caja,Pedro, 2014. "Clusters and industrial districts: where is the literature going? Identifying emerging sub-fields of research," INGENIO (CSIC-UPV) Working Paper Series 201409, INGENIO (CSIC-UPV).

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