Firm Competitiveness and Subnational Region: A Resource-Based Strategy of Business Localization

Sandra Tovar-Gasca, Veneta Andonova, Guillermo Antonio Ruiz Pava

Producción: Contribución a una conferenciaPaperrevisión exhaustiva

Resumen

The firm competitiveness within subnational regions is not homogeneous as firm resources change their value and productivity depending on the local specificities. This paper shows that differences in firm competitiveness depend on three underlying dimensions of the environment: quality of the business environment, presence of civil control and accountability, and basic services coverage. We use the firm-level Return on Assets (ROA) as a performance measure. In regions with a low-quality business environment, a more significant share of explained variance of ROA is attributed to firm-level characteristics than in regions with better quality of the business environment. The share of ROA variance explained by industry-level factors is positively related to the regional quality of the business environment. In regions with poor civil control and accountability, the share of ROA variance explained by industry factors is higher, as collusion is arguably a possible competitive tactic. Finally, in regions with better basic service coverage, the share of ROA variance explained by firm-level factors is higher, as the ability of the individual firms to mobilize such contextual resources for building firm-specific competitive advantage is arguably more significant. This study encompasses 2013- 2020, 27 regions in Colombia, and 10000 firms.
Idioma originalInglés
DOI
EstadoPublicada - 2023
EventoAcademy of Management, 2023 - , Estados Unidos
Duración: 04 ago. 202308 ago. 2023

Conferencia

ConferenciaAcademy of Management, 2023
País/TerritorioEstados Unidos
Período04/08/2308/08/23

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