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Moderating influence of internal resources on cluster externalities

Moderating influence of internal resources on cluster externalities Purpose – The purpose of this paper is to assess the benefits to firms arising from their geographical concentration; paying particular attention to the impact of specialized employees, information and knowledge spillovers and a collective reputation. Design/methodology/approach – The authors have taken into account two main approaches: a cluster one, where location may increase firms’ competitiveness; and the resource‐based view, where internal resources are the key for firms’ success. Empirical evidence has been gathered from the Ham cluster in Spain combining secondary and primary data. The authors undertook a Tobit regression model since the dependent variable is limited. Findings – The authors observe that firms with human resources tend to benefit more from cluster externalities. On contrary, R&D and advertising investments induce firms to isolate themselves from crowded areas and prevent any local leakage. Research limitations/implications – It would be interesting to better understand the role that human resources play; undertake a longitudinal analysis; and take into account the resources of other proximate firms. Practical implications – Local advantages depends the maturity of the industry by reducing the attractiveness of cluster locations through greater competition in the input and final markets; while internal resources may improve a firm's ability to absorb these externalities, they may also create leakage that benefits neighbouring firms. Originality/value – It combines two approaches evaluating the moderating influence of internal resources on local externalities. It also offers new empirical evidence from a low‐tech industry. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png EuroMed Journal of Business Emerald Publishing

Moderating influence of internal resources on cluster externalities

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Publisher
Emerald Publishing
Copyright
Copyright © 2014 Emerald Group Publishing Limited. All rights reserved.
ISSN
1450-2194
DOI
10.1108/EMJB-04-2013-0014
Publisher site
See Article on Publisher Site

Abstract

Purpose – The purpose of this paper is to assess the benefits to firms arising from their geographical concentration; paying particular attention to the impact of specialized employees, information and knowledge spillovers and a collective reputation. Design/methodology/approach – The authors have taken into account two main approaches: a cluster one, where location may increase firms’ competitiveness; and the resource‐based view, where internal resources are the key for firms’ success. Empirical evidence has been gathered from the Ham cluster in Spain combining secondary and primary data. The authors undertook a Tobit regression model since the dependent variable is limited. Findings – The authors observe that firms with human resources tend to benefit more from cluster externalities. On contrary, R&D and advertising investments induce firms to isolate themselves from crowded areas and prevent any local leakage. Research limitations/implications – It would be interesting to better understand the role that human resources play; undertake a longitudinal analysis; and take into account the resources of other proximate firms. Practical implications – Local advantages depends the maturity of the industry by reducing the attractiveness of cluster locations through greater competition in the input and final markets; while internal resources may improve a firm's ability to absorb these externalities, they may also create leakage that benefits neighbouring firms. Originality/value – It combines two approaches evaluating the moderating influence of internal resources on local externalities. It also offers new empirical evidence from a low‐tech industry.

Journal

EuroMed Journal of BusinessEmerald Publishing

Published: Apr 29, 2014

Keywords: Resource‐based view; Internationalization; Networks; Agglomeration

References