Relocations are determined by firms' relationships with financing institutions: A paper based on network data for Japanese firms

Abstract

Both theoretical and empirical research studies the factors influencing firms' location choices. This paper presents a new viewpoint by considering relationship continuity to explain small-scale relocations and relocations of small and medium-sized enterprises (SMEs), which represent the majority of firms. The influences of firms' relationships with financing institutions are studied using a two-stage nested logit model. Consequently, the positive effect of relationships on location choices is revealed and the factors preventing firms from moving are described. The model is valid for estimating relocations to medium-sized cities, and the influences on shrinking firms as opposed to expanding firms are especially strong.

Roles of supply chain network centralities on firm performance: an explorative study on Tokyo manufacturing industries

“…TDB is a major Japanese database company specializing in company credit research and has one of the largest collections of credit and industrial network data. Existing research has used this database as a network data source (Fukuda et al , 2019; Moran, 2005). We asked TDB to extract data from Tokyo registered companies in the electronics, electrical appliances and machinery industries.…”

“…Existing research has used this database as a network data source (Fukuda et al, 2019;Moran, 2005). We asked TDB to extract data from Tokyo registered companies in the electronics, electrical appliances and machinery industries.…”

National borders transcended: the impact of geographical proximity on the growth of global innovation networks among cities in East Asia

“…In particular, several papers highlight the importance of the global network, which Japan is part of (e.g. Fukuda, Kidokoro, Seta, & Sato, 2019;Takeuchi et al, 2018).…”