Why do Firms Locate Across Multiple Clusters? Cluster Density, Capabilities and Ethnic Ties

Karthik Dhandapani, Rajesh S. Upadhyayula and Amit Karna

Industry and Innovation, 2015, vol. 22, issue 4, 251-272

Abstract: It is well-accepted that firms locate in clusters to benefit from spillover effects from similar firms in the location. However, some firms choose to locate in multiple clusters. In this paper, we focus on the phenomenon of multi-cluster presence. Through an empirical investigation of 95 firms from the information technology enabled service industry within India, we analyze the drivers of membership across multiple clusters. Our findings indicate first that firms that are located in lower density clusters show a tendency to locate in a larger number of clusters. Second, firms that are looking for people-based creative capabilities also tend to locate in a larger number of clusters. Finally, the firms that are not founded at the location of ethnic origin of the founder CEO also tend to locate in a larger number of clusters.

Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/13662716.2015.1035958 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:indinn:v:22:y:2015:i:4:p:251-272

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/CIAI20

DOI: 10.1080/13662716.2015.1035958

Access Statistics for this article

Industry and Innovation is currently edited by Associate Professor Mark Lorenzen

More articles in Industry and Innovation from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().