Firms in Context: Internal and External Drivers of Success

Mercedes Delgado*

*Corresponding author for this work

Research output: Chapter in Book/Report/Conference proceedingBook chapterResearchpeer-review


How important is location for successful regional and firm performance? To answer this question the first part of the chapter reviews studies using sophisticated methods for defining and mapping clusters-geographical concentrations of related industries, firms, and supporting institutions. These studies show the importance of clusters for entrepreneurship, innovation, and other performance dimensions. The second part of the chapter examines the relationship between location and firm strategy and performance. Location within a cluster by itself does not ensure that a firm will benefit. Thus, a firm's strategic positioning and its location choices are interrelated. I offer a framework that takes into account the role of internal agglomerations (intra-firm linkages that are facilitated by geographical proximity) and external agglomerations (inter-firm linkages in clusters) on the location choices and performance of firms.
Original languageEnglish
Title of host publicationThe New Oxford Handbook of Economic Geography
EditorsGordon L. Clark, Maryann P. Feldman, Meric S. Gertler, Dariusz Wójcik
Number of pages21
Place of PublicationOxford
PublisherOxford University Press
Publication date2018
ISBN (Print)9780198755609
Publication statusPublished - 2018
Externally publishedYes


  • Defining and mapping clusters
  • External agglomerations
  • Firm location choices
  • Innovation
  • Internal agglomerations

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