The Social Structure of Entrepreneurial Activity: Geographic Concentration of Footwear Production in the United States, 1940–1989
Year: 2000
Type: article
Abstract: Nearly all industries exhibit geographic concentration. Most theories of the location of industry explain the persistence of these production centers as the result of economic efficiency. This article argues instead that heterogeneity in entrepreneurial opportunities, rather than differential performance, maintains geographic concentration. Entrepreneurs need exposure to existing organizations in the industry to acquire tacit knowledge, obtain important social ties, and build self‐confidence. Thus, the current geographic distribution of production places important constraints on entrepreneurial activity. Due to these constraints, new foundings tend to reify the existing geographic distribution of production. Empirical evidence from the shoe industry supports this thesis.
Source: American Journal of Sociology
DOI: 10.1086/316962
Authors: Olav Sorenson, Pino G. Audia
Institutions: University of California, Los Angeles, London Business School
Language: English
Subfield: Economics and Econometrics
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W2158135958