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Strategic Management Policy

Old Dominion University

Agglomerations

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Full-Text Articles in Business

Cluster Typologies And Firm Survival: Complementary And Substitutive Effects, Chris H. Willis, Matthew Farrell, Hami Usta Jan 2023

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 …