 The influence of related and unrelated industry diversity on retail firm failureJournal of Retailing and Consumer Services, 2016, vol. 28, issue C, 219-227 Abstract: The purpose of this paper is to analyse the influence of related and unrelated industry diversity on retail firm failure with a focus on Swedish retailers. The paper develops competing hypotheses from organizational theory and the economics of agglomeration concerning the survival chances of retail firms located in geographic proximity. Hypotheses are tested using a hazard model and a sample of 48,953 retail firms observed during 2002–2010. Key findings show that increases in the local share of similar retail firms is positively related to the risk of failure while there is a negative relation between increases in local industry diversity and the risk of failure. These results indicate that knowledge transfer from a diverse set of industries are important in lowering the failure risk. Differentiating among small and specialized retail firms indicate that there is significant intra-industry heterogeneity in the influence of local industrial composition on the likelihood of failure. Keywords: Firm failure; Retail; Hazard model; Industry diversity (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:joreco:v:28:y:2016:i:c:p:219-227 DOI: 10.1016/j.jretconser.2015.09.006 Access Statistics for this article Journal of Retailing and Consumer Services is currently edited by Harry Timmermans More articles in Journal of Retailing and Consumer Services from Elsevier |
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