Localization Decisions of Entrepreneurs: The Role of Path Dependency and Market Forces

[摘要] The purpose of this research is to determine the role of path dependency and market forces in the localization decisions of entrepreneurs from different industries. We hypothesize that most industries develop new entities based on the number of companies from the same industry that already exist in a region. We also hypothesize that entrepreneurs create new entities based on related industries operating within the same knowledge pool. To test these hypotheses, we used the machine learning decision tree method. The input variables are the number of companies from 86 industries located in 2,531 communities in Poland in 2009. The target values are the number of new companies from these industries created in the years 2009-2015. The principal results show that localization decisions are mostly based on demand and supply industries, in which manufacturing industries play crucial role. Path dependency appears in less than half of the industries' models and thus is not the main factor influencing decisions regarding the creation of new companies. The highest share of path-dependent industries is in manufacturing sector, but the degree of the dependence is lower than in the service sector. The service sector seems to be the least path-dependent, as services usually serve other industries. Competition in industries is a rare factor in new company creation; however, if it appears, it usually shrinks the industry.

[发布机构] Lublin University of Technology, Nadbystrzycka 38d St., Lublin; 20-618, Poland^1

[学科分类] 土木及结构工程学

[关键词] Decision tree method;Input variables;Manufacturing industries;Manufacturing sector;Market forces;Path dependency;Service sectors;Target values