EconPapers    
Economics at your fingertips  
 

HARD AND SOFT LOCATIONAL FACTORS,INNOVATIVENESS AND FIRM PERFORMANCE - an empirical test of Porter’s diamond model at the micro-level

Alexander Eickelpasch (), Anna Lejpras () and Andreas Stephan ()

No 109, Working Paper Series in Economics and Institutions of Innovation from Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies

Abstract: This paper investigates predictions of Porter’s Diamond model regarding the impact of locational factors on innovativeness and performance at the firm level. We formulate a structural equation model based on the relationships between locational conditions, e.g., transportation infrastructure, proximity to universities and research institutes, qualified labour, on the one hand, and innovativeness measured by new product or process development, number of patents, and firm performance in terms of market growth or profit assessment, on the other hand. Based on a sample of about 2,100 East German firms, we apply the partial least squares path modelling approach to test the proposed relationships. We find that particularly cooperation intensity at the local level spurs the innovativeness of firms; whereas in contrast to Porter’s predictions, our results indicate that strong local competition and a locally focused market appear to impede the innovativeness and performance of firms.

Keywords: Hard and Soft Locational Factors; Innovativeness; Firm Performance; East German Firms; Structural Equation Modelling; Partial Least Squares Approach (search for similar items in EconPapers)
JEL-codes: L25 O31 R30 (search for similar items in EconPapers)
Pages: 26 pages
Date: 2007-12-11
New Economics Papers: this item is included in nep-bec, nep-cse, nep-ino and nep-tid
References: Add references at CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
https://static.sys.kth.se/itm/wp/cesis/cesiswp109.pdf (application/pdf)

Related works:
Working Paper: Hard and Soft Locational Factors, Innovativeness and Firm Performance: An Empirical Test of Porter's Diamond Model at the Micro-Level (2007) Downloads
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:hhs:cesisp:0109

Access Statistics for this paper

More papers in Working Paper Series in Economics and Institutions of Innovation from Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology, SE-100 44 Stockholm, Sweden. Contact information at EDIRC.
Bibliographic data for series maintained by Vardan Hovsepyan ().

 
Page updated 2021-09-11
Handle: RePEc:hhs:cesisp:0109