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.

Spatial embeddedness and firm performance: an empirical exploration of the effects of proximity on innovative and economic performance

Recent theoretical developments in organisation science and regional economics have emphasised the importance of networks and geographical proximity for the performance of firms. Empirical evidence on these relationships is scarce, though, especially in regional science. In this paper, we address the following research question: to what extent do firm-specific resources, organisational embeddedness, proximity, and industry factors influence innovative and economic outcomes of innovative firms? We used a theoretical synthesis of regional and organisational science to build a research model that enabled us to derive several hypotheses on the influence of proximity on outcomes, taking other important predictors for performance into account. Our empirical findings confirm the importance of proximity especially for innovative outcomes. Moreover, we found that in particular network relations with buyers and suppliers are conducive for firm performance, whereas other indicators of embeddedness and of internal resources have little impact probably due to substitution effects. Finally, regional as well sectoral R&D spillovers influence outcomes in a positive way.

Learning, innovation and proximity. An empirical exploration of patterns of learning: a case study

learning; innovation

Regional systems of innovation from within.An empirical specification of the relation between technological dynamics and interaction between multiple actors in a Dutch region

technological dynamics; interaction patterns; innovation

Reliable and valid measurement scales for determinants of the willingness to accept knowledge

Before any acquired knowledge is used or adds value to the receiving project (members), it must be accepted by its recipients, leading to an increase in their positive attitudes towards, and intended use of, the acquired knowledge. To be willing to accept knowledge, the receiving project's team members must perceive it to have value and be easy to use. The focus of this exploratory paper is to develop and empirically test relevant sub-dimensions of perceived value and ease-of-use. The sub-dimensions were identified through a literature review, and measurement scales were developed empirically by applying a well-established scale development methodology