The influence of industrial clusters on SMEs earliness and postentry speed: Exploring the role of innovation activities

Abstract

Despite the existing contributions on the economic and social relevance of industrial clusters in the firms' internationalization, research on these topics is still scarce and, particularly, controversial at an empirical level. This study contributes to the extant literature on international development, proposing to explore the impact that industrial clusters and innovation activities exert in the most relevant temporal dimension of the firm's foreign expansion—internationalization speed (earliness and postentry speed). Further, this research seeks to ascertain whether the relationship between industrial clusters and internationalization speed is significantly different for low and high‐technology businesses. Based on a sample of 3,537 Portuguese firms, collected in the SABI database, the results suggest that firms belonging to industrial clusters and developing innovation activities tend to exhibit a higher postentry speed, not observing the same impact in terms of early internationalization. The findings also reveal that low‐technology firms have an additional incentive to become involved in industrial clusters, since these actions will be reflected to a greater extent in their postentry speed than those of high‐technology firms.

Performance of small businesses in Tangier: the perceptual role of location

“…This study highlights the issue of location as a particularly significant factor influencing the performance of SMEs in the geographical context of Tangier. This is consistent with the findings that emerged in a wealth of studies about location in various contexts (Mendes et al, 2021;Laurin et al, 2020;Martyniuk-pe ˛czek et al, 2017). For example, Laurin et al (2020), Martyniuk-pe ˛czek et al (2017, Storey (1994) and Liedholm (2002) stressed the impact of urban vs rural locations and argued that inappropriate location could have consequences and negative effects on SMEs.…”

“…When further examining the role of location, other studies have paid particular attention to the role of geographical clusters (Mendes et al, 2021;McCann and Folta, 2008). Birkinshaw and Hood (2000, p. 142) defined clusters as "an aggregation of competing and complementary firms that are located in relatively close geographical proximity"again, consistent with Christaller's conception.…”

“…Tallman et al (2004) added the role of the social networks aspect in their enriched definition for a cluster, which was described as a group of firms tied together by geographical co-location and complex social interaction. Several studies argued that firms based in local or regional agglomerations benefit from locating in clusters as they outperform those located outside (Mendes et al, 2021;Madsen et al, 2003;McCann and Folta, 2008). In their study of a sample of 3,537 Portuguese firms, Mendes et al (2021) suggest that firms belonging to industrial clusters and developing innovation activities tend to exhibit a higher post entry speed, not observing the same impact in terms of early internationalization.…”

“…Several studies argued that firms based in local or regional agglomerations benefit from locating in clusters as they outperform those located outside (Mendes et al, 2021;Madsen et al, 2003;McCann and Folta, 2008). In their study of a sample of 3,537 Portuguese firms, Mendes et al (2021) suggest that firms belonging to industrial clusters and developing innovation activities tend to exhibit a higher post entry speed, not observing the same impact in terms of early internationalization. Similarly, in their study about Danish firms, Madsen et al (2003) found that firms located in industrial clusters are more productive than their counterparts located separately outside industrial agglomerations.…”

“…While some analysts suggested that the dynamics of the success of businesses remain a black box (Dockel and Ligthelm, 2005;Ligthelm, 2010), others argued that the success of enterprises is a function of both external and internal factors (Penrose, 1959;McCline et al, 2000;Guzman and Santos, 2001;Markman and Baron, 2003). Among the factors affecting SME performance, that have been of great interest to researchers, entrepreneurs and policy makers alike is the location factor (Mendes et al, 2021;Laurin et al, 2020;Martyniuk-pe ˛czek et al, 2017). As with "success", location means different things in varied disciplines.…”