Digital Commons Network^™

Slack, Location, Diversification, Or R&D Intensity? How The Most (And Least) Innovative Firms Deploy Resources, Jamil Kreugel, Matthew Farrell, Chris H. Willis

College of Business (Strome) Posters

Firms frequently innovate by recombining knowledge components. Through bringing together diverse scientific or technological concepts, firms can reassemble these extant knowledge components into novel and useful innovations. At the same time, many of the mechanisms firms use to recombine knowledge components carry substantial agency costs. When firms conduct research and development, diversify, hold slack resources, or locate near close competitors, they become vulnerable to misappropriation of investor resources due to opportunistic actions by agents. Using patent citation data from semiconductor firms, we study how firms, which consistently produce high-quality innovations, balance the need for knowledge recombination with the need to …

Cluster Typologies And Firm Survival: Complementary And Substitutive Effects, Chris H. Willis, Matthew Farrell, Hami Usta

College of Business (Strome) Posters

Agglomerations, or "clusters," are typically defined as the idea that firms can benefit from shared locations through mutual knowledge, labor pools, and suppliers, and have long been a subject of scholarly interest. However, research in geographic economics has identified a broad array of agglomeration externalities beyond such supply-side clusters, which problematizes the use of the term "cluster" to refer to any geographic grouping of firms. Clusters can be groups of firms from the same country ("country-of-origin" clusters), demand side (clustering to lower search costs for customers), Jacobsian clusters (tight groups of diverse firms), internal (groupings of firms from the same …

Two’S A Crowd? Implications Of Economic Geography For Corporate Governance, Matthew Farrell

Theses and Dissertations in Business Administration

Although literature on corporate governance and economic geography often explores similar constructs, theories, and other matters, little work has been done examining their joint effects. This two-essay dissertation integrates these literatures in order to partially fill this gap by asking the following research questions:

1.) Do geographic proximity and multiple directorships function as substitutes or complements?

2.) How is the governance of highly innovative firms affected by the presence of Marshallian externalities?

While some scholars suggest that multiple directorships lead to board members neglecting their advisory and monitoring obligations, others have embraced the idea that holding multiple board seats can …