Expanding location advantages from agglomeration: a legitimacy perspective of global location portfolios in the electric vehicle industry

Sylvaine Castellano, Adnane Maalaoui and Aubry Springuel

International Journal of Entrepreneurship and Innovation Management, 2015, vol. 19, issue 5/6, 343-362

Abstract: In complex and uncertain environments, firms seek alternative ways to conform to stakeholders' expectations and gain legitimacy. While some studies emphasise the benefits of agglomeration (territorial anchorage), others explain the advantages of location in different environments (nomadic approach) as a legitimation means. The present article aims to study the advantages of firms' multi-localisation. We employ an integrative approach and explore the case of Better Place, a new venture evolving in the electric car industry. We demonstrate that firms employ both territorial anchorage and a nomadic approach as a means to gain their legitimacy. Based on: 1) the balance between territorial anchorage and nomadism; 2) the dynamic capabilities of the firm, we find that firms develop four types of legitimacy strategies: new venture; multi-localised; spillover; and institutional strategy. A nomadic approach of a firm with multi-located anchorage enables legitimation dynamics through local and global stakeholders.

Keywords: location advantages; legitimacy strategies; global location portfolio; nomadic firms; electric vehicles; agglomeration; multiple locations; localisation; automobile industry; territorial anchorage; nomadism; new ventures; spillovers; institutional strategy; local stakeholders; global stakeholders. (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (2)

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