Strategic factor markets: expectations, luck, and business strategy
Management Science
Applied multivariate statistical analysis
Applied multivariate statistical analysis
Local R&D Strategies and Multilocation Firms: The Role of Internal Linkages
Management Science
Factors that Improve ERP Implementation Strategies in an Organization
International Journal of Enterprise Information Systems
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There has been a recent revival of interest in the geographic component of firm strategy. Recent research suggests that two opposing forces---competition costs and agglomeration benefits---determine whether firms collocate in a given geographic market. Unexplored is (1) whether these forces have different impacts on R&D, production, and sales subsidiaries, leading to diverse collocation levels, and (2) how firm capabilities impact collocation by increasing or decreasing competition costs and agglomeration benefits. I explore these questions using the worldwide location decisions of firms in the cellular handset industry. I find that production and sales subsidiaries are more geographically dispersed, and R&D subsidiaries are more concentrated, than a random distribution would predict. When distinguishing firms by their capabilities, I find that more-capable firms collocate less than less-capable firms, regardless of the activity performed.