Agglomeration Efects and Strategic Orientations: Evidence From The U.S. Lodging Industry

Linda Canina · Cathy A. Enz · Jeffrey S. Harrison

327 citations0/0 files storedAcademy of Management Journal

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Regional Economics and Spatial Analysis Innovation and Knowledge Management Business Strategy and Innovation

Abstract

This study provides evidence regarding the strategic dynamics of competitive clusters. Firms that agglomerate (co-locate) may benefit from the differentiation of competitors without making similar differentiating investments themselves. Alternatively, co-locating with a high percentage of firms with low-cost strategic orientations reduces performance for firms pursuing high levels of differentiation. Further, the lowest-cost providers with the greatest strategic distance from the norm of the competitive cluster reap the greatest benefit from co-location with differentiated firms. We find empirical support for these ideas using a sample of 14,995 U.S. lodging establishments, and controlling for a number of key demand-shaping factors.

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References

1991Firm Resources and Sustained Competitive Advantage 2004Firm resources and sustained competitive advantage 1980Competitive Strategy: Techniques for Analyzing Industries and Competitors 1985Competitive Advantage: Creating and Sustaining Superior Performance 1985Competitive advantage, creating and sustaining superior performance 1998Competitive advantage: creating and sustaining superior performance 2014Clusters and the New Economics of Competition 1999Localization of Knowledge and the Mobility of Engineers in Regional Networks

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2006Social Capital, Geography, and Survival: Gujarati Immigrant Entrepreneurs in the U.S. Lodging Industry 2013Toward an Integrative Conceptual Framework of Destinations 2011How do hotels choose their location? Evidence from hotels in Beijing 2013Theoretical, empirical, and operational models in hotel location research 2009Agglomeration Economies and Firm Performance: The Case of Industry Clusters

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