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Location advantage : Emergent and guided co-evolutions

Author

Listed:
  • Alvaro Cuervo-Cazurra

    (Northeastern University [Boston])

  • Pablo Martin de Holan

    (EM - EMLyon Business School, INCAE Business School - INCAE Business School)

  • Luis J. Sanz

    (INCAE Business School - INCAE Business School)

Abstract

We analyze how location advantage is created and developed at the country level. We argue that location advantage can be best understood as the result of the interaction between two distinct types of co-evolutionary processes: emergent, whereby location advantage is created as the result of agglomeration dynamics in product and factor markets; and guided, whereby location advantage is created as the result of infrastructure dynamics in institutions and endowments. We illustrate empirically the application of the co-evolutionary perspective and the differences between emergent and guided co-evolutionary processes with the analysis of the development of location advantage in the Costa Rican tourism industry.

Suggested Citation

  • Alvaro Cuervo-Cazurra & Pablo Martin de Holan & Luis J. Sanz, 2014. "Location advantage : Emergent and guided co-evolutions," Post-Print hal-02313204, HAL.
    • Handle: RePEc:hal:journl:hal-02313204
    DOI: 10.1016/j.jbusres.2013.11.007
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    2. Mustafa Sakr & Andre Jordaan, 2017. "Foreign Market Selection of Emerging Multinational Corporations: Evidence from South African and Egyptian Corporations," Working Papers 201734, University of Pretoria, Department of Economics.
    3. Jiang, Shisong & Gong, Limin & Wang, Hua & Kimble, Chris, 2016. "Institution, strategy, and performance: A co-evolution model in transitional China," Journal of Business Research, Elsevier, vol. 69(9), pages 3352-3360.
    4. Chan Wang & Pu‐yan Nie, 2020. "Retail competition using free shopping shuttle bus strategies," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 41(6), pages 1010-1019, September.
    5. Vaz, Rolando, 2021. "Firm Growth: A review of the empirical literature," Revista Galega de Economía, University of Santiago de Compostela. Faculty of Economics and Business., vol. 30(2), pages 1-20.
    6. Lampón, Jesús F. & Cabanelas, Pablo & Carballo-Cruz, Francisco, 2017. "A model for international production relocation: Multinationals' operational flexibility and requirements at production plant level," Journal of Business Research, Elsevier, vol. 77(C), pages 95-101.
    7. Yang, Yang & Mao, Zhenxing, 2020. "Location advantages of lodging properties: A comparison between hotels and Airbnb units in an urban environment," Annals of Tourism Research, Elsevier, vol. 81(C).
    8. Rolando Vaz, 2023. "Firm growth in the Portuguese footwear industry: the location dilemma," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 70(2), pages 407-427, April.

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