Firms In Peripheral Regions Research Articles

The spatial impact of high-speed rail on firm performance: The role of proximity to urban cores

This paper examines the spatial impact of high-speed rail (HSR) connection on firm performance in China at the micro level using a unique administrative dataset. Connected firms benefit from agglomeration economies and improved market access, but the redistribution of production inputs towards urban cores may have a negative impact on firms in peripheral regions. If these opposing forces are both subject to spatial decay but at different rates, proximity to urban cores could play a crucial role in determining the overall effects of HSR connection on firms. We find that connected firms located farther from urban cores benefit the most, indicating a steeper spatial decay in the redistribution effect relative to the agglomeration effect. This research enhances our understanding of the micro-level spatial impact of HSR on regional development.

Management skills and organizational culture as sources of innovation for firms in peripheral regions

The existing literature shows that the knowledge and skills of managers and organizational culture are key elements to innovate. We present a model that explores the relationship of innovation with management skills and some elements of organizational culture. The study has selected indicators previously compiled from the literature, reorganized for the purpose of this research, and the model proposed here has been assessed using a multivariate technique. Through the method of Structural Equation Modeling there were tested and evaluated the causal relationships. We have used a representative survey of 416 companies, which was designed for executives working in different economic sectors. The results provide strong linkages between organizational culture and innovation and contribute clarifying to firms in peripheral regions how the strategies of cultural aspects are above the management skills of managers. Interestingly, management skills have a negative impact on innovations outcomes. This could be explained by the diffuse capabilities. The cultural elements operate at a deeper level, probably due to a deficit in the management and technical training in R&D&I of managers or to the absorptive capacity between employees. Although there is still no clear explanation for these negative senses, this can be a motivation for future analysis.

Access to high-speed rail and land prices in China's peripheral regions

This paper examines how transport access affects the land values in peripheral regions, by exploiting the recent expansion of China's high-speed rail (HSR) network. Based on a nation-wide land transaction dataset and applying a DID-hedonic approach, we find that industrial parcels in distant peripheries benefit from the HSR-induced growth spillover, while residential parcels in the immediate vicinity of a high-tier core experience larger price appreciation after HSR connection. Based on comprehensive firm-level datasets, additional tests of the HSR impact on the location choice and performance of firms in peripheral regions show much similar patterns. These findings add to the understanding of the impact of HSR on the spatial distribution of economic activity. By accelerating the growth spillovers from the highly agglomerated urban core to remote peripheries, transport access can play an essential role in reducing spatial inequality. By contrast, peripheries neighboring highly agglomerated urban cores may benefit more from the relocation of residents from urban core, at the expense of a shrinking manufacturing sector due to agglomeration shadow effect.

In the same boat? The dynamics of embedded firms in peripheral regions

ABSTRACT Peripheral regions are often negatively characterized as having structural weaknesses that hinder the development of thriving firms. This study explores embeddedness, a concept considered important to overcome such liabilities, because it may enable or constrain actors’ access to additional resources. However, there is limited understanding of the underlying dynamics of this concept. Based on a qualitative case study of the development of salmon-farming firms in peripheral areas of Norway, this study shows that the industry’s pioneering phase was characterized by embedding processes among the farmers through sharing and openness. Over time, greater industry consolidation created a division between listed firms and locally owned small- and medium-sized firms (SMEs). The listed firms disembedded from the social and institutional contexts of the periphery, which led the SMEs to reinforce their embeddedness and continue their collaborations. Thus, our findings extend prior studies treating embeddedness as a static concept, showing how embeddedness consistently develops in response to actors’ actions. We further show that the SMEs’ embeddedness in multiple contexts (social, institutional, and spatial) enabled them to solve mutual challenges through interfirm collaborations, thereby securing competitive advantages. Hence, we contribute to a holistic, evolutionary, and dynamic understanding of embeddedness processes in peripheral regions.

Innovation and regional development via the firm’s core competence: some recent evidence from North East England

This paper examines the nature of linkages between core competence of a firm and key characteristics of its product/output and thus presents an alternative theoretical framework for innovation and regional development. Within this framework, it is the externally observable characteristics of what a firm produces, rather than its internal functions, that establishes whether a distinct core competence potentially exists, in order to operationalize it for R&D and innovation activities. To demonstrate potential applications of this framework, a literature-based- questionnaire was designed to collect primary data from 330 firms located in North East England, a peripheral region of the UK. Collected data were subjected to a detailed statistical analysis to estimate the conditional probability that a firm has a core competence, given the presence of one or more of its key output/product characteristics. Based on this approach, the paper presents a theoretical/empirical framework for the promotion of innovation via enhancement of a firm’s core competence, and improvement in its output/product characteristics. This framework might be employed as a strategic management tool (1) by a firm to help in allocation of scarce resources for innovation and innovation management and (2) by regional policymakers for targeting and assisting firms in peripheral regions to enhance regional development via firms’ innovation and exporting activities.

Regional engagement of locally anchored firms and its influence on socio-economic development in two peripheral regions over time

This article sets out to explore the ways locally anchored firms in peripheral regions influence regional social capital through regional engagement and how this contributes to socio-economic development. Through regional engagement firms shape regional contexts by generating concrete outcomes, such as setting up schools (structural aspect) and by possibly influencing regional bonding and bridging social capital (social aspect). To examine the effects of regional engagement and its possible influence on bonding and bridging social capital of regional firms, an analytical framework is developed distinguishing between inclusive/exclusive agency for inclusive/exclusive benefit. This article focuses on regional engagement in two Swiss peripheral regions, which have followed different development paths in spite of their common institutional framework and geographical proximity. This study aims to gain insight into the ‘how’ of regional engagement and its influence on regional social capital and to examine the assumption of higher levels of regional social capital in a dynamic region from a long-term perspective (ca. 1850–2015). The findings of the qualitative research show that the dynamic Rhine Valley indeed disposes of higher levels of regional social capital than the less dynamic Toggenburg, which is related to the willingness of firms and other actors to collaborate for regional interests.

Innovation, SMEs and the liability of distance: the demand and supply of bank funding in UK peripheral regions

This paper considers geographical variations in the demand and supply of bank finance for innovative firms in the UK. It uses a detailed survey on the finances of almost 40,000 UK Small and Medium Sized Enterprises for 2011 – 2013 to investigate both the extent and type of applications for bank finance by innovative firms in peripheral regions, whether funders accept their applications and whether acceptance rates reflect objective criteria, such as credit scores, or their location. The paper finds evidence of higher demand for bank finance for innovative firms in peripheral areas, but that these firms are more likely to be discouraged from applying. However, there is strong evidence that innovative firms in peripheral regions are more likely to have their applications for finance rejected, even when controlling for factors such as credit score. The findings suggest that geography matters in the financing of innovative firms and firms in peripheral areas may suffer a “liability of distance” which potentially reinforces regional disparities. The implications of these findings for public policy are outlined.

Innovation in peripheral regions: Do collaborations compensate for a lack of local knowledge spillovers?

It is widely accepted that firms in peripheral regions benefit to a lesser extent from local knowledge spillovers than firms located in agglomerations or industrial clusters. This paper investigates the extent to which innovative firms in peripheral regions compensate for the lack of access to local knowledge spillovers by collaborating at other geographical scales. So far, the literature predominantly suggests that collaborations complement rather than compensate for local knowledge spillovers. Using data on the collaboration patterns of innovative firms in Sweden, this paper provides evidence that firms with low access to local knowledge spillovers tend to collaborate more. This effect, however, depends on firm size and in-house capabilities. Our findings suggest that firms with strong in-house capabilities do indeed compensate for a lack of local knowledge spillovers with collaborations while firms with weaker in-house capabilities depend more on the regional knowledge infrastructure.

Universities and Knowledge-Intensive Business Services (KIBS) as Sources of Knowledge for Innovative Firms in Peripheral Regions

Pinto H., Fernandez-Esquinas M. and Uyarra E. Universities and knowledge-intensive business services (KIBS) as sources of knowledge for innovative firms in peripheral regions, Regional Studies. Knowledge-intensive business services (KIBS) make a crucial contribution to regional innovation. Their relevance is potentially higher in peripheral territories, assisting small and medium-sized enterprises to access knowledge. Nevertheless, regions often concentrate research and development capabilities in the public sector, while highly specialized services provided by firms are scarce. Using data from 737 firms in Andalusia, Spain, this article connects the literatures of KIBS and university–industry interactions. This paper finds that absorptive capacity remains a central dimension in interactions with universities and the use of KIBS. Even if KIBS firms do not demonstrate higher propensities to interact with universities, the use of both channels is evidence of knowledge circulation between innovative firms and universities' advanced services.

Universities and KIBS as sources of knowledge for innovative firms in peripheral regions

Universities and knowledge-intensive business services (KIBS) as sources of knowledge for innovative firms in peripheral regions, Regional Studies. Knowledge-intensive business services (KIBS) make a crucial contribution to regional innovation. Their relevance is potentially higher in peripheral territories, assisting small and medium-sized enterprises to access knowledge. Nevertheless, regions often concentrate research and development capabilities in the public sector, while highly specialized services provided by firms are scarce. Using data from 737 firms in Andalusia, Spain, this article connects the literatures of KIBS and university?industry interactions. This paper finds that absorptive capacity remains a central dimension in interactions with universities and the use of KIBS. Even if KIBS firms do not demonstrate higher propensities to interact with universities, the use of both channels is evidence of knowledge circulation between innovative firms and universities' advanced services.

Network intermediaries in the internationalisation of new firms in peripheral regions

PurposeThis paper aims to draw on the network perspective of firm internationalisation to study how an intermediary network actor, such as an export promotion organisation (EPO), can influence the internationalisation of new ventures located in peripheral regions.Design/methodology/approachThe paper employs case analysis and the critical incident technique to study the influence of the Irish Government's support agency for the seafood industry, Bord Iascaigh Mhara (BIM), on the internationalisation of three new ventures in the seafood sector in the West of Ireland.FindingsThe EPO played an important role in information mediation: identifying foreign opportunities and customers; facilitating introductions to international customers; and by providing foreign market knowledge; and as a resource provider developing the firm's export capacity.Research limitations/implicationsThe choice of sector and method may impact on the ability to generalise the findings to firms in other contexts.Practical implicationsThis study identifies a number of important implications for managers. It identifies a dilemma for policy‐makers: do efforts to develop strong support agencies come at the expense of developing strong firms?Originality/valueThis study advances the understanding of the role of an intermediary network actor in influencing new‐firm internationalisation. It identifies a set of conditions that, it is argued, are necessary if an EPO is to facilitate firm internationalisation.

A matching analysis of why some firms in peripheral regions undertake R&D whereas others do not

Many studies have established the importance of investment in R&D to facilitate innovation and consequently improve firm productivity. Firms decide whether or not to undertake R&D depending on a range of factors such as market orientation, business objectives, competitive advantages and absorptive capacity. This paper studies the factors that influence this decision in peripheral locations; and for firms that do not undertake R&D, we analyse the reasons for not doing so. The research is based on data from a survey of some 250 matched firms operating in Northern Ireland, about half undertaking R&D and half not. Northern Ireland is an interesting case study because it exhibits a low level of investment in R&D despite the public subsidies and policy initiatives that have existed over the last 30 years. For firms that undertake R&D, our results mostly confirm the findings of others while for firms that do not undertake R&D the results point to a capabilities-gap rather than a resource-gap as the fundamental problem. Policy conclusions are drawn as to what might be done to boost both the amount of R&D undertaken and the number of firms engaged in R&D in peripheral regions.

Interaction between innovation in small firms and their environments: An exploratory study

Small food firms make up an important sector in the European economy and are particularly significant in rural areas where they are potential sources of employment and growth. Despite this, their behaviour as regards innovation has been relatively little studied to date. This exploratory investigation finds different types of innovative behaviours among small agro-food firms in peripheral regions and identifies some of the factors with which they are associated. The research reported here is based on a sample of 323 small and very small food and drink (hereafter “food”) firms drawn from 11 regions in six European countries. The food industry is generally regarded as a mature, low-technology industry, but this study identifies different clusters of small food firms according to innovative behaviours. It finds that, although a substantial number of firms may be defined as non-innovators, by far the largest cluster of food firms is involved in multiple forms of innovative activity. Recent studies have demonstrated the complexity of the determinants of technological progress. This may be modelled as a learning process in which small innovative firms tend to draw on internal and external sources of expertise and are both influenced by and influence the broader socio-economic environment in which they operate. This study uses cluster analyses to identify four types of innovative behaviours and examines the factors influencing these. It takes first steps to incorporate both measures of innovative capacity at the firm level as well as of the local development environment in order to explore links between the innovative capacity of small food firms and the characteristics of their regional contexts.

Decentralized versus centralized financial systems: is there a case for local capital markets?

In recent years, stimulated by globalization, technological innovation and intensifying international competition, there has been a growing trend towards the increasing institutional and geographical concentration of financial systems and markets. At the same time, there has been mounting academic and policy interest in the financing problems faced by new and small firms, which are widely considered to suffer from a ‘funding gap’. These twin developments provide the motivation for this paper, which seeks to throw some theoretical and empirical light on the question of whether the spatial organization of the financial system impacts on the flows of capital to small firms across regions. Is it the case that a heavily spatially-centralized financial system, like that in the UK, militates against the ready access to capital by new and small firms in peripheral regions, while a more decentralized financial system, like that in Germany, results in a more even regional distribution? The paper first discusses this question theoretically in the context of the regional finance literature. It then compares capital market structures and the regional distribution of equity for SMEs in the UK and Germany. This comparison lends some support to the view that capital markets do not function in a space-neutral way, and that a highly centralized system like that in the UK may well introduce spatial bias in the flows of capital to SMEs. It also shows, though, as the case of Germany illustrates, that the actual impact of the geographical organization of capital markets depends on, and is mitigated by, other institutional and regulatory conditions. Our analysis suggests while a geographically decentralized financial system with sizable and well-embedded regional/local clusters of institutions, networks, agents, and markets could be advantageous in various ways, regional/local capital markets also face a number of major challenges and problems. The paper indicates the need for more research in this somewhat neglected area.

Stumbling into Applied Anthropology: Collaborative Roles of Academic Researchers

In the course of my research on the organizational histories of small high-technology firms in peripheral regions of the United Kingdom, I came into frequent contact with various small-business support organizations, including colleges of further education, innovation centers, enterprise trusts, enterprise zones, and outreach programs from university business schools. The reaction of these agencies to my inquiries ranged from outright hostility to enthusiastic invitations to collaborate in a variety of ways that I, an academic researcher and outsider, had not anticipated. This account is a confessional tale that catalogs those unanticipated collaborative roles. As with most confessional tales, it has a happy ending, with the realization that many opportunities for developing applied anthropology roles come even to the academic researcher.

The Performance of Business-Service Firms in Peripheral Regions: An International Comparison between Scotland and Nova Scotia

In this paper a comparative analysis of the competitiveness and performance of business-service companies in two peripheral regions, Nova Scotia and Scotland, is presented. Several dimensions of performance are investigated for four industries: market research, management consultancy, advertising, and graphic design. Value added per person is one third higher in Scotland compared with Nova Scotia, and Nova Scotian offices derive a much higher proportion of their turnover from government and public-sector contracts. In general, however, a very consistent picture emerges of the relative position of business services in the two regions. Possible demand-side and supply-side causes of such differences are reviewed and potential policy responses considered.

Regional innovation and small high technology firms in peripheral regions

This paper highlights the difficulty of developing HT firms in a peripheral region of Spain. Although the endogenous development of HT firms in these regions is possible, their evolution depends on more central regions. The firm's geographical location and the type of HT production are the most important endogenous factors governing the firm's success.