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Industry evolution, resilience and regional embeddedness: the case of the Danish microbrewing industry

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  • Poul Houman Andersen
  • Jesper Lindgaard Christensen

Abstract

Excess capacity and increased competition in the Danish microbrewing industry have created a burgeoning shakeout, which has been accelerated by the Covid-19 crisis. We discuss which types of firms are likely to survive this, specifically, to what extent such firms use regional embeddedness as a survival strategy. Using three different types of data, we demonstrate that firms’ regional and local embeddedness is widely used to shelter them from competition pressures. Moreover, the passion among owners and investors for the sector (and its products) alters the purely economic rationality that generally, according to theoretical predictions, determines whether firms survive industry shakeout.

Suggested Citation

  • Poul Houman Andersen & Jesper Lindgaard Christensen, 2023. "Industry evolution, resilience and regional embeddedness: the case of the Danish microbrewing industry," Regional Studies, Taylor & Francis Journals, vol. 57(10), pages 1924-1936, October.
    • Handle: RePEc:taf:regstd:v:57:y:2023:i:10:p:1924-1936
    DOI: 10.1080/00343404.2022.2131754
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