Industry Networks and the Geography of Firm Behavior

• 成果类型: Article
• 署名作者: Grieser, William; LeSage, James; Zekhnini, Morad
• 署名单位: Texas Christian University; Texas State University System; Texas State University San Marcos; Michigan State University
• 刊物名称: MANAGEMENT SCIENCE
• ISSN/ISSBN: 0025-1909
• DOI: 10.1287/mnsc.2021.4133
• 发表日期: 2022
• 页码: 6163-6183
• 关键词: NETWORKS; agglomeration economies; geography; Product market competition; Supply chains; Corporate investment; financial policy; Spatial econometrics

摘要

Using a network approach that circumvents well-known challenges in estimating peer effects, we show that interactions with a firm's geographic neighbors play a significant causal role in corporate investment behavior and a modest role in financial policies and firm performance. Moreover, these geography network effects are almost entirely driven by propagation effects through product market and supply chain networks. We corroborate our findings in a quasi-experimental framework that allows for spillovers in treatment effects. Our findings help rationalize industrial clusters (e.g., Silicon Valley), as they illustrate that agglomeration economies are substantial and operate predominantly within industry boundaries.