IDEAS home Printed from https://ideas.repec.org/a/rom/mancon/v17y2023i1p418-434.html
   My bibliography  Save this article

Presence Of Related Industries And Complementors In The Local Economy And Firm Performance

Author

Listed:
  • Cosmin Florin LEHENE
  • Razvan Liviu NISTOR

Abstract

There is a vast body of literature in the economics and business academia investigating if the presence and development of clusters of related industries and complementors in the regional or local economy drive the firm or regional performance. Despite the high enthusiasm with which the businesses and policy makers embraced the cluster theory recently appeared also some contradicting evidence regarding the pure effect of participation of firms in this type of geographical bounded collaborative strategies and firm performance. In this paper, relying on empirical evidence provided from inside the firm by experienced managers we found relatively weak support for some aspects of cluster theory. Through a statistical analysis of the answers provided by 65 medium and large companies operating in the manufacturing sector in Romania we provide evidence of a relatively weak effect of presence of related industries and complementors in the local economy and productivity related performances (revenues, profits, labor productivity, customer satisfaction, organizational growth) and no relationship with innovation related performances (new product development, products and processes/operations improvement, diversification, market expansion). The findings from our paper contribute to the stream of research and theories which prioritize for the achievement of superior performances, what happens inside the firm, what the firm and company centric strategies, rather than the contextual conditions such as the presence and participation in local clusters.

Suggested Citation

  • Cosmin Florin LEHENE & Razvan Liviu NISTOR, 2023. "Presence Of Related Industries And Complementors In The Local Economy And Firm Performance," Proceedings of the INTERNATIONAL MANAGEMENT CONFERENCE, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 17(1), pages 418-434, November.
    • Handle: RePEc:rom:mancon:v:17:y:2023:i:1:p:418-434
    DOI: 10.24818/IMC/2023/03.03
    as

    Download full text from publisher

    File URL: https://conference.management.ase.ro/archives/2023/pdf_IMC2023/S3/3_3.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.24818/IMC/2023/03.03?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Michael Porter, 2003. "The Economic Performance of Regions," Regional Studies, Taylor & Francis Journals, vol. 37(6-7), pages 549-578.
    2. Mercedes Delgado & Christian Ketels & Michael E. Porter & Scott Stern, 2012. "The Determinants of National Competitiveness," NBER Working Papers 18249, National Bureau of Economic Research, Inc.
    3. Mercedes Delgado & Michael E. Porter & Scott Stern, 2016. "Defining clusters of related industries," Journal of Economic Geography, Oxford University Press, vol. 16(1), pages 1-38.
    4. Krugman, Paul, 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 483-499, June.
    5. Masahisa Fujita & Paul Krugman, 2004. "The new economic geography: Past, present and the future," Advances in Spatial Science, in: Raymond J. G. M. Florax & David A. Plane (ed.), Fifty Years of Regional Science, pages 139-164, Springer.
    6. Fujita , Masahisa & Krugman, Paul, 2004. "The new economic geography: Past, present and the future," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 4, pages 177-206.
    7. Frank Neffke & Martin Henning & Ron Boschma, 2011. "How Do Regions Diversify over Time? Industry Relatedness and the Development of New Growth Paths in Regions," Economic Geography, Clark University, vol. 87(3), pages 237-265, July.
    8. Raluca Irina CLIPA & Ion POHOAŢĂ & Flavian CLIPA, 2012. "The new economic geography and regional policy in Romania," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(8(573)), pages 5-18, August.
    9. Nils Grashof, 2021. "Spill over or Spill out? – A multilevel analysis of the cluster and firm performance relationship," Industry and Innovation, Taylor & Francis Journals, vol. 28(10), pages 1298-1331, November.
    10. repec:agr:journl:v:4(581):y:2013:i:4(581):p:25-32 is not listed on IDEAS
    11. Edith Andrésen & Helene Lundberg & Tommy Roxenhall, 2012. "Designing for commitment in regional strategic networks," Management Research Review, Emerald Group Publishing Limited, vol. 35(6), pages 531-552, May.
    12. Ion POHOAŢĂ & Raluca Irina CLIPA, 2013. "Contributions to assessing the relative dimension of agglomeration theories," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(4(581)), pages 25-32, April.
    13. Marcin Bogdanski, 2012. "Modern Theories Of Regional Development – A Review Of Some Concepts," Oeconomia Copernicana, Institute of Economic Research, vol. 3(2), pages 25-41, June.
    14. Marcin Bogdanski, 2012. "Modern Theories Of Regional Development – A Review Of Some Concepts," Oeconomia Copernicana, Polskie Towarzystwo Ekonomiczne Oddzial w Toruniu, Wydzial Nauk Ekonomicznych i Zarzadzania UMK, vol. 3(2), pages 25-41, June.
    15. Marta Mackiewicz & Beata Namyślak, 2021. "Development conditions for creative clusters in Poland in view of institutional environment factors," Growth and Change, Wiley Blackwell, vol. 52(3), pages 1295-1311, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Matthias Firgo & Peter Mayerhofer, 2015. "Wissens-Spillovers und regionale Entwicklung - welche strukturpolitische Ausrichtung optimiert des Wachstum?," Working Paper Reihe der AK Wien - Materialien zu Wirtschaft und Gesellschaft 144, Kammer für Arbeiter und Angestellte für Wien, Abteilung Wirtschaftswissenschaft und Statistik.
    2. Aguilar, Francisco X., 2009. "Spatial econometric analysis of location drivers in a renewable resource-based industry: The U.S. South Lumber Industry," Forest Policy and Economics, Elsevier, vol. 11(3), pages 184-193, May.
    3. Cosmin Florin LEHENE & Răzvan Liviu NISTOR, 2023. "The Influence Of Various Collaborative Aspects Of Large And Medium Companies On Regional Performance," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 32(1), pages 185-204, July.
    4. Matthias Firgo & Peter Mayerhofer, 2015. "Wissensintensive Unternehmensdienste, Wissens-Spillovers und regionales Wachstum. Teilprojekt 1: Wissens-Spillovers und regionale Entwicklung – Welche strukturpolitische Ausrichtung optimiert das Wach," WIFO Studies, WIFO, number 58342.
    5. José M. Gaspar, 2018. "A prospective review on New Economic Geography," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 61(2), pages 237-272, September.
    6. Ketels Christian, 2017. "Working Paper 258 - Structural Transformation: A competitiveness-based view," Working Paper Series 2369, African Development Bank.
    7. Belmartino, Andrea, 2016. "Diversidad industrial en las provincias argentinas y factores económicos asociados (1996-2012)," Nülan. Deposited Documents 2604, Universidad Nacional de Mar del Plata, Facultad de Ciencias Económicas y Sociales, Centro de Documentación.
    8. Raquel Ortega-Argilés, 2022. "The evolution of regional entrepreneurship policies: “no one size fits all”," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 69(3), pages 585-610, December.
    9. Natalya Rybnikova & Boris Portnov, 2015. "Using light-at-night (LAN) satellite data for identifying clusters of economic activities in Europe," Letters in Spatial and Resource Sciences, Springer, vol. 8(3), pages 307-334, November.
    10. Evgeniy Kutsenko & Sabyasachi Tripathi & Kirill Tyurchev, 2023. "Does complementarity matter for the emergence of new specialization industries in the regions of Russia?," Regional Science Policy & Practice, Wiley Blackwell, vol. 15(9), pages 2126-2155, December.
    11. Jaya Prakash Pradhan & Mohammad Zohair, 2015. "Subnational Export Performance and Determinants," Review of Market Integration, India Development Foundation, vol. 7(2), pages 133-174, August.
    12. Pedro Antonio Martín Cervantes & Nuria Rueda López & Salvador Cruz Rambaud, 2020. "The Effect of Globalization on Economic Development Indicators: An Inter-Regional Approach," Sustainability, MDPI, vol. 12(5), pages 1-18, March.
    13. Seyed Peyman Asadi & Ahmad Jafari Samimi, 2019. "Lagging-behind Areas as a Challenge to the Regional Development Strategy: What Insights can New and Evolutionary Economic Geography Offer?," Papers in Evolutionary Economic Geography (PEEG) 1923, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Jul 2019.
    14. Emanuel Shachmurove & Yochanan Shachmurove, 2010. "Location, Location, Location: Entrepreneurial Finance Meets Economic Geography," PIER Working Paper Archive 10-030, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania.
    15. Minoru Tabata & Nobuoki Eshima, 2023. "Approximation of a Continuous Core-periphery Model by Core-periphery Models with a Large Number of Small Regions," Networks and Spatial Economics, Springer, vol. 23(1), pages 223-283, March.
    16. Mokhele Masilonyane & Geyer Hermanus S., 2021. "A theoretical foundation for investigating the spatial economic attributes of airport-centric developments," Bulletin of Geography. Socio-economic Series, Sciendo, vol. 54(54), pages 21-31, December.
    17. Delgado, Mercedes & Porter, Michael E. & Stern, Scott, 2014. "Clusters, convergence, and economic performance," Research Policy, Elsevier, vol. 43(10), pages 1785-1799.
    18. Chengliang Liu & Qinchang Gui, 2016. "Mapping intellectual structures and dynamics of transport geography research: a scientometric overview from 1982 to 2014," Scientometrics, Springer;Akadémiai Kiadó, vol. 109(1), pages 159-184, October.
    19. Mark D. Partridge & Dan S. Rickman & Kamar Ali & M. Rose Olfert, 2008. "Lost in space: population growth in the American hinterlands and small cities," Journal of Economic Geography, Oxford University Press, vol. 8(6), pages 727-757, November.
    20. Kim, Ho Yeon, 2012. "Shrinking population and the urban hierarchy," IDE Discussion Papers 360, Institute of Developing Economies, Japan External Trade Organization(JETRO).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rom:mancon:v:17:y:2023:i:1:p:418-434. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ciocoiu Nadia Carmen (email available below). General contact details of provider: https://edirc.repec.org/data/mnasero.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.