A Relational Account of the Causes of Spatial Firm Mobility

It is accepted in the literature that exchanges within networks have an ongoing social structure that both enables and constrains the behavior of its members (Pfeffer and Nowak 1976; Uzzi 1996). However, most research in inter-organizational settings has focused on the enabling effects of networks and network structures only, even though some noteworthy exceptions exist (e.g. Romo and Schwartz 1995; Singh and Mitchell 1996). A possible constraining effect of network participation is spatial lock-in, also known as spatial inertia, of a firm. Following Resource Dependence Theory (Pfeffer and Salancik 1978), it can be argued that a firm that makes extensive use of knowledge resources possessed or controlled by external actors for its innovative processes can become dependent on these actors. By themselves, the relationships in which these dependencies exist are non-spatial. However, since geographical proximity is assumed to facilitate the successful exchange of (especially tacit) knowledge through inter-organizational relationships (IORs) (Bretschger 1999), dependency on other firms located in the same region can also lead to dependency on a certain geographical location, and thus to spatial lock-in (Stam 2003). The IORs that are enabling for the firm in terms of its innovative processes act, at the same time, as constraining factors for the spatial behavior of the firm. Similar reasonings can be found in the literature on Territorial Innovation Models (Moulaert and Sekia 2003), which indicates that economic embeddedness in a region can be beneficial for the performance of firms. However, this embeddedness can also lead to dependence on localized inputs and production factors. Due to these dependencies, a firm can become very unlikely to relocate, even if doing so is beneficial from a cost perspective. As Romo and Schwartz state: “Firms are usually too dependent on the material, political and social resources available in the local production culture to risk departure, even when production costs might be substantially reduced (Romo and Schwartz 1995:874).†There currently is, however, only weak empirical evidence for the proposed relationship between the level of (local) embeddedness and a firm’s propensity to relocate. Moreover, several authors even propose that geographical distance in IORs is becoming irrelevant since it effects can be replicated by ICT (Morgan 2004), or high levels of organizational or technological proximity (Kirat and Lung 1999). If this is indeed the case, then participation in localized innovative IORs will have no effect on the spatial behavior of firms, since a firm can operate exactly the same on a different geographical location. The main goal of this research is to provide empirical insights into the effects of a firm’s level of participation in innovative (localized) inter-organizational relationships (IORs) on its propensity to relocate. Based on the above, the following research question has been formulated is “To what extent is the level of embeddedness of a firm in (localized) innovative inter-organizational relationships of influence on its propensity to relocate?†Answering this research question adds to the insights about the constraining effects of networks by focusing on the spatially constraining effect of inter-organizational relationships. This research question will be answered based on a data from a survey among Dutch automation service firms in 2006. In line with earlier research (c.f. Van Dijk and Pellenbarg 2000; Brouwer et al. 2004) an ordinal logit model will be used to relate the relocation propensity of a firm to that firm’s participation in localized innovative IORs, the strength of these IORs, and the level of geographical, organizational and technological proximity. It also provides insight into the question whether or not high levels of technological and organizational proximity can negate the need for geographical proximity in inter-organizational collaboration (Boschma 2005). References: Boschma, R. A. (2005). "Proximity and innovation: A critical assessment." Regional Studies 39(1): 61-74 Bretschger, L. (1999). "Knowledge diffusion and the development of regions." Annals of Regional Science 33(3): 251-268 Brouwer, A. E., I. Mariotti and J. N. van Ommeren (2004). "The firm relocation decision: An empirical investigation." Annals of Regional Science 38(2): 335-347 Van Dijk, J. and P. H. Pellenbarg (2000). "Firm relocation decisions in The Netherlands: An ordered logit approach." Papers in Regional Science 79(1): 191-219 Kirat, T. and Y. Lung (1999). "Innovation and proximity - Territories as loci of collective learning processes." European Urban and Regional Studies 6(1): 27-38 Morgan, K. (2004). "The exaggerated death of geography: Learning, proximity and territorial innovation systems." Journal of Economic Geography 89(1): 3-21 Moulaert, F. and F. Sekia (2003). "Territorial innovation models: A critical review." Regional Studies 37(3): 289-302 Pfeffer, J. and P. Nowak (1976). "Joint-ventures and interorganizational interdependence." Administrative Science Quarterly 21(3): 398-418 Pfeffer, J. and G. R. Salancik (1978). The external control of organizations: A resource dependency perspective. New York, Harper and Row Romo, F. P. and M. Schwartz (1995). "The structural embeddedness of business decisions: The migration of manufacturing plants in New York state, 1960 to 1985." American Sociological Review 60(1): 874-907 Singh, K. and W. Mitchell (1996). "Precarious collaboration: Business survival after partners shut down or form new partnerships." Strategic management journal 17(2): 99-116 Stam, F. C. (2003). Why butterflies don't leave: Locational evolution of evolving enterprises. Utrecht, Utrecht University Uzzi, B. (1996). "The sources and consequences of embeddedness for the economic performance of organizations: The network effect." American Sociological Review 61(4): 674-698

The effects of firm relocation on firm performance - A literature review

Approximately 6% of all firms in the Netherlands decide to relocate every year. Furthermore, the number of firms that has relocated increased dramatically over time. Relatively much is known about the (re)location decision itself. However, much less research focuses on the effects of relocation on the performance of firms. This is remarkable since the importance of the geographical and organizational position of a firm for firm performance, and especially innovation, has become more and more profound over time. The notion that no firm may function as an island on itself is accepted by and large and the importance of a firm’s geographical and organizational position is sometimes even described as exaggerated in the literature. It therefore seems logical to study the effects of changes in a firm’s position as a result of a relocation. Given the above this paper asks the question: What is known in the literature about the effects of firm relocation on the performance of firms? In order to answer this question, first an overview of the possible effects of firm relocation is given. Subsequently, a review of the available literature dealing with the effects of firm relocation is presented in order to make an inventory of the effects that have and have not been studied. It is argued that the scarce relocation literature that is available has an extremely narrow focus and largely neglects the importance of the geographical and organizational position of a firm and thereby might ignore important factors influencing the effects of firm relocation on firm performance.

Evaluation of Dutch election programs: The impact of parameter uncertainty

Shortly before the national elections in the Netherlands, the Netherlands Bureau for Economic Policy Analysis (CPB) evaluates the economic effects of the policy proposals in election programs. This paper investigates the sensitivity of this analysis to the uncertainty of parameter estimates in the economic models that are used. For this purpose, a Monte Carlo analysis of five election programs is performed, using a core version of one of the CPB models. We find that the range of projected outcomes is surprisingly small. Nonetheless, caution remains needed, especially when the estimated effects of different parties are roughly similar.Model simulation; policy evaluation; parameter uncertainty; CGE models

Canons in the classroom: An exploration of teachers' selection of works for musicological examination in New South Wales.

This study provides a detailed view of current practice in relation to the New South Wales Board of Studies Music 2 Syllabus Mandatory Topic, ‘Music of the last 25 years (Australian focus)’. It closely examines various interpretations of this topic, and motivations behind these interpretations, through the voices of those involved in its implementation: an educational administrator, music educationalists, teachers and representatives from education-oriented arts organisations. Through interviews with these participants, this multi-case study examines patterns and influences behind the selection of works for the musicology component of the Mandatory Topic. Conducted across metropolitan and regional areas, the research investigates whether there is equitable access to resources. The study evaluates the complex factors and current practices in the selection of musicological works for study. By bringing to light the current unofficial canon shaped by teachers and others within NSW schools, this thesis proposes strategies for the teaching of musicology in ways that more accurately reflect contemporary educational thinking that is sound, progressive and inclusive

The Franki Committee (1976 Report) and Statutory Licensing

Contains fulltext : 140337.pdf (publisher's version ) (Closed access)We focus in this study on sets of inter-organizational relationships (IORs) by applying a configurational approach that includes both the diversity and the intensity of knowledge transfer IORs. We use a latent class cluster analysis to empirically explore the kinds of IORs configurations. We then use antecedents derived from the IOR literature to explain firm membership in those configurations. Our tests allow us to identify four configurations ranging from isolated innovators to innovating firms embedded in diverse and deep sets of IORs. We show that internal knowledge use by firms, and the types of innovative activities in which they engage, are strong predictors of firm membership in different configurations.19 p

Status report of the three phase 25 kA, 1.5 kW thermally switched superconducting rectifier, transformer and switches

A 25 kA, 1.5 kW superconducting rectifier system has been developed. This rectifier system working like an a.c.-d.c, converter with a primary current of 35 A at 0.1Hz, will energize a 25 kA coil with an average power of 5.4 MJ/hr and a proposed energy efficiency of at least 96%. Such a highly efficient device might work instead of a 'normal' rectifier and a pair of 25 kA current leads with its energy loss of at least 2 W/kA. The 25 kA current step-up transformer has been tested succesfully concerning its maximum current (26.4 kA) and a.c. losses (2 W at 25 kA and 0.1Hz). A conductor for the 25 kA switches has been manufactured and processed into the switching system. Their construction is described

How small bars resist smoking bans in the Netherlands

'It's the community, stupid!', write Tal Simons, Patrick Vermeulen and Joris Knobe

A 25 kA, 2T, 78 kJ, 52 litre superconducting test coil. Strength calculations and construction

Within the scope of our research program for a 25 kA superconducting rectifier, we have built a 25 kA s.c. coil being a single layer solenoid with a bore of 0.45 meter and a volume of 52 litre. The starting point for the design was to avoid any metallic structural material. This unique coil consists of 26 turns of a Rutherford cable in one layer covered at the outside with 6 millimeter glassfibre reinforced epoxy, in order to lower the azimuthal and axial stresses in the conductor to acceptable values. The coil has been vacuum impregnated with a glassfilling factor of 0.529. The paper describes the strength calculations and the construction details. A theoretical analysis of the mechanical behaviour of the glassfibre-epoxy-conductor lamination is given