Location advantage: Emergent and guided co-evolutions

Alvaro Cuervo-Cazurra (), Pablo Martin de Holan and Luis J. Sanz
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Pablo Martin de Holan: EM - EMLyon Business School, INCAE Business School - INCAE Business School
Luis J. Sanz: INCAE Business School - INCAE Business School

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Abstract: We analyze how location advantage is created and developed at the country level. We argue that location advantage can be best understood as the result of the interaction between two distinct types of co-evolutionary processes: emergent, whereby location advantage is created as the result of agglomeration dynamics in product and factor markets; and guided, whereby location advantage is created as the result of infrastructure dynamics in institutions and endowments. We illustrate empirically the application of the co-evolutionary perspective and the differences between emergent and guided co-evolutionary processes with the analysis of the development of location advantage in the Costa Rican tourism industry.

Date: 2014-04-01
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Published in Journal of Business Research, 2014, 67 (4), 508-515 p. ⟨10.1016/j.jbusres.2013.11.007⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-02313204

DOI: 10.1016/j.jbusres.2013.11.007

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