New firm formation facing cultural and racial diversity*

This paper is intended to examine how regional diversity in terms of cultural and racial diversity affects new firm formation in 10 disaggregated industrial sectors across US counties. Bayesian Markov Chain Monte Carlo method is used to estimate the spatial autoregressive regression models. It is suggested that regional diversity positively affects new firm formation, both in its own and neighbouring counties, in selected industries examined. Resumen Este artículo tiene por objeto examinar cómo la diversidad regional expresada en forma de diversidad cultural y racial afecta a la formación de nuevas empresas en 10 sectores industriales desagregados en condados de los Estados Unidos. Se utiliza el método de Monte Carlo bayesiano basado en cadenas de Markov para estimar los modelos de regresión espaciales autorregresivos. Se sugiere que, en las industrias seleccionadas examinadas, la diversidad regional afecta positivamente a la formación de nuevas empresas, tanto en el propio condado como en los vecinos.      

Regional unemployment structure and new firm formation

Does regional unemployment increase or rather decrease entrepreneurial activity? Although this question has been hotly debated among researchers for decades, the answers yielded so far are ambiguous and inconclusive. The paper proposes an innovative approach that takes not only interregional differences in unemployment rates, but also in unemployment duration and the human capital of the unemployed, that is, in the structure of regional unemployment into account. Both, the skill structure of the unemployed and the share of long‐term unemployment are found to have an important impact on regional start‐up activity. Moreover, the impact of unemployment structure on new firm formation is found to vary with the knowledge‐intensity of the start‐ups.     

The determinants of the vertical boundaries of the construction firm: comment

A method is presented for allocating resources to construction activities and for scheduling construction projects under resource constraints by considering the effects that such resource limitations may have on the tendency of the activities (and the project in general) to fall into disarray and behind schedule. Resource‐constrained scheduling problems (RCSP) are very common in real‐life construction projects and because of their nature their numerical solution is computationally intensive. The method utilizes a measure of each activity's perceived level of disorder stemming from resource limitations. The proposed technique aims to optimize the number of resources assigned to the activities and to schedule the project so as to minimize the overall project's tendency to fall into disorder. The entropy‐like metric used in the scheduling optimization is related to the ratio of required over‐assigned resource units per activity, and its utilization allows a planner to take into consideration project disorder when planning a project. A case study and its mathematical framework help demonstrate the ‘duration vs. disorder’ trade‐off analysis that planners should perform when considering possible activity resource assignments and the feasibility of these assignments in terms of induced disorder. The entropy optimization method proves to be a powerful project‐planning metric.     

The determinants of the vertical boundaries of the construction firm: response

Chang seems to suggest that developing closer relations between Transaction Cost Economics (TCE) and the Resource‐Based View (RBV) is not yet needed. However, we are unmoved in our belief that this development is compelling and remain committed to our approach to pluralism. We disagree with Chang's critiques of our approach. We clarify that a synthesis of TCE and RBV along the lines of theoretical monism is not attempted. On this basis, two of the three questions raised, labelled ‘ontological dissonance’ and ‘variable multicollinearity’, are not applicable. With regard to the other question that relates to refutability, Barney has shown that the variables are refutable and Barney also makes reference to empirical work pertaining to RBV. We agree with Chang that TCE is weak on differential production and believe that an acceptance of the coexistence of TCE and RBV is likely to make both theories more successful on the issue of vertical integration. In the end, pluralism appeals as much to us as it does to the chief proponents of TCE and RBV, as a means of making progress in the near term.     

Regional determinants of firm entry in a developing country

We analyse the determinants of firm entry in developing countries using Argentina as an illustrative case. Our main finding is that although most of the regional determinants used in previous studies analysing developed countries are also relevant here, there is a need for additional explanatory variables that proxy for the specificities of developing economies (e.g., poverty, informal economy and idle capacity). We also find evidence of a core‐periphery pattern in the spatial structure of entry that seems to be mostly driven by differences in agglomeration economies. Since regional policies aiming to attract new firms are largely based on evidence from developed countries, our results raise doubts about the usefulness of such policies when applied to developing economies.     

The determinants of the vertical boundaries of the construction firm

In the last few years, transaction cost economics has become a popular theory within the construction research community. This approach has been singularly applied as a means to explain and predict phenomena concerning the construction firm, including its vertical boundaries. However, this is at a time when the chief proponents of transaction costs are urging researchers to take a pluralistic stance in relation to the theory of the firm. The aim of this paper is to develop a pluralistic approach to the vertical boundaries of the construction firm. In order to achieve this, an integrative framework is described, based on the development of the efficient boundaries problem and the capabilities approach to vertical integration. Specifically, this framework draws on the complementary strengths of transaction cost economics and the resource‐based view. It is concluded that the potential relative merits of theoretical pluralism, in terms of the vertical boundaries of the construction firm, are sufficient grounds to motivate empirical testing of the predictions associated with the integrative framework of vertical integration presented.     

Regional variations in firm formation: Panel and cross-section data evidence from Finland

This article investigates regional variations in firm formation in Finland between 1989 and 1993, and estimates the effects of regional factors on firm formation utilising panel and cross-sectional data. Panel data evidence shows that the average size of firms and establishments in the subregions tends to explain firm formation in Finland most robustly. Cross-sectional results for Finland and several other countries tend to show that demand growth is also an important factor explaining regional firm formation. Panel data results appear to differ from the cross-sectional ones. Received: 18 December 1997 / Accepted: 14 June 1999     

On the conceptualization of agglomeration economies: The case of new firm formation in the Dutch ICT sector

In this research we look at the factors that determine new firm formation in the information and communications technology (ICT) sector among 580 municipalities in the Netherlands. In particular, we examine the role of agglomeration economies and other locational attributes in determining where new firms locate. Both proximity (contiguous) and heterogeneous (non-contiguous) structures at the local, regional and national level are significant when considering localised firm formation. This result supports previous evidence that high-technology enterprises tend to co-locate in areas where economic activity is spatially dense. The major point of our argument is that controversial research results in the literature concerning explanatory spatial circumstances that most favorably induce dynamic and innovative externalities (to a large extent) can be attributed to the lack of consistent spatial research designs that allow the modelling of multiple spatial scale and composition effects. More specifically, we argue that the incubation hypothesis needs adjusting to the appropriate spatial levels and units of analysis: that of the agglomerated region. Finally, we argue that the lack of consistent inclusion of life-cycle aspects of firms in the present mainstream literature on dynamic externalities also contributes to controversies in research outcomes. These findings are important for spatial economic policy indicating that investment in new technologies and economic structures should enhance the prospects for spillover effects at the local level.This article benefited considerably from comments on earlier versions made by participants at the 42nd European Regional Science Conference 2002 in Dortmund, participants of the workshop Modern Entrepreneurship, Regional Development and Policy at the Tinbergen Institute in Amsterdam (May 2003), attendants at a presentation at the Deutsches Institut für Wirtschaftfo-rschung (DIW) in Berlin (August 2003), Leo van Wissen (Rijkuniversiteit Groningen) and two anonymous referees. The usual disclaimers apply.     

New estimates of the determinants of urban crime

The Annals of Regional Science - New tests of the utility maximizing model of criminal behavior, first proposed by Becker, are performed. These tests use newer data than has previously been...     

Secondary organic aerosol in residences: predicting its fraction of fine particle mass and determinants of formation strength

Indoor secondary organic aerosol (SOA) formation may contribute to particle concentrations within residences, but little systematic work has investigated its magnitude or the determinants of its formation. This work uses a time‐averaged modeling approach to predict the indoor SOA mass formed in residences due to the oxidation of 66 reactive organic compounds by ozone or the hydroxyl radical, parameterizing SOA formation with the aerosol mass fraction. Other organic and inorganic aerosols owing to outdoor and indoor sources were also predicted. Model inputs were represented as distributions within a Monte Carlo analysis, so that result distributions and sensitivity of results to inputs could be quantified, using a dataset developed from the study of Relationships between Indoor, Outdoor and Personal Air and other sources. SOA comprised a large amount of indoor organic and total fine particles for a subset of the results (e.g., >47% of indoor organic and >30% of fine aerosol for 10% of the modeled cases), but was often a small fraction. The sensitivity analysis revealed that SOA formation is driven by high terpene emission rates (particularly by d‐limonene) and outdoor ozone, along with low air exchange and ozone and particle deposition rates.     

Networks and firm location

This paper models the decision of vertically linked firms to build either partitioned or connected networks of supply of an intermediate good. In each case, there is a correlation between the locations of upstream and downstream firms. Input specificity is related to both variable costs (transport costs of the input) and fixed costs (learning costs of the use of the input). When both are low, a connected network emerges, whereas, in the opposite case, we find a partitioned pattern. In the boundary region, there are multiple equilibria, either asymmetric (mixed network) or symmetric.     

The firm relocation decision: An empirical investigation

In the current paper, the determinants of firm relocation behaviour in twenty-one countries during the period 1997-1999 are analyzed. We demonstrate that internal growth factors measured by increases, but also decreases, in the workforce induce firm relocation. Firms that serve larger markets relocate more often. It is also demonstrated that relocations are often a result of acquisitions, mergers and take-overs, which are a consequence of external growth.The authors would like to thank Jouke van Dijk, Leo Van Wissen and Piet Pellenbarg of the University of Groningen, the Netherlands, for their helpful suggestions and comments as well as the two anonymous referees for their useful comments.     

Slum improvement in India: determinants and approaches

This paper investigates living conditions in Indian slums, extent of improvement of basic services between 2002 and 2012 and determinants of improvement based on National Sample Survey data. The pace of slum improvement has increased over the study period. Slums devoid of basic services have reduced in 2012 as compared to 2002. Security of tenure, strengthened especially through notification of slums, appears to be one of the most important determinants of slum upgradation. Improvements of electricity and water supply spur improvements of other basic services. Better approach roads lead to better housing but motorable pucca (tarmac) approach road or proximity to motorable road reduces likelihood of better housing. Government is the major provider of services in slums. The role of NGOs in improvement of basic services within slums has declined over time along with decline in associations for slum improvement. The paper advocates transfer of full property rights to slum dwellers and integration of different institutions for slum improvement.     

Human capital in firms and regions: Impact on firm productivity

This paper analyses the importance of human capital for firm productivity and makes a clear distinction between the role of human capital inside and outside of the firm. A multilevel model is used for the business service sector in Sweden controlling for heterogeneity across the industry and municipal level. Human capital in firms in terms of education, experience, and cognitive skills and the firm's overall access to human capital has a positive impact on firm productivity. In addition, firm attributes explain the largest proportion of firm productivity variance.     

Start-ups and firm in-migration: evidence from the Swedish wholesale industry

We use a data set covering 13,471 Swedish limited liability firms in the Swedish wholesale industries during 2000–2004 to ascertain the determinants of new start-ups and of in-migration of firms. Access to a large harbor, international airport or large railroad classification yard in the municipality nearly triples the number of start-ups and increases the expected number of in-migrating firms with 53 %. The presence of a university, many educated workers and low local taxes are also associated with more start-ups and firm in-migration.     

项目动力学：系统动力学方法在项目管理中的应用

本文首先对项目动力学和系统动力学及其近来的发展和应用情况进行了介绍，给出了若干项目动力学模型的例子．并指出运用项目动力学与传统的项目管理技术相结合．能够相互弥补其不足，形成互补．能够更好地适应各种类型的复杂项目管理的需要     

Strategic groups and firm performance: the case of Spanish house-building firms

A central theme in strategic management is the theoretical relationship between strategic groups and firm performance. However, the empirical evidence is conflicting. The aim of this research is to study this linkage by examining business strategies in the Spanish construction industry. This paper defines several groups based on Porter's generic strategies of 88 house-building firms, and studies performance differences between groups. The empirical findings demonstrate that significant differences in performance do not exist among groups. Implications of this research for Porter's generic strategies in construction are then discussed.     

Knowledge externalities and firm heterogeneity: Effects on high and low growth firms

Knowledge externalities affect high and low growth firms differently. This paper develops two theoretical arguments. The knowledge equilibrium argument postulates that knowledge externalities weaken high growth firms for the benefit of low growth firms until performance differences vanish. The knowledge competition argument proposes that high growth firms are better positioned to identify, attract, and integrate knowledge, thereby expanding the performance gap between high and low growth firms. Based on 188,936 observations of 32,736 Swedish firms from 2004 to 2011, it is analysed whether knowledge externalities enable high growth firms to surge ahead or low growth firms to catch up.