Skip to main content
Fachgebiete
Automobil + Motoren Bauwesen + Immobilien Business IT + Informatik Elektrotechnik + Elektronik Energie + Nachhaltigkeit Finance + Banking Management + Führung Marketing + Vertrieb Maschinenbau + Werkstoffe Versicherung + Risiko
DE
EN
Themenseiten
Organisationspsychologie Projektmanagement Marketing Smart Manufacturing
Bücher
Zeitschriften
Weitere Formate
Podcasts Webinare Technik Webinare Wirtschaft Kongresse Veranstaltungskalender Awards
Jetzt Einzelzugang starten
Zugang für Unternehmen
Referenzkunden
MTZ-Fachkongress

Antriebe und Energiesysteme von morgen


Austausch von Automobil- und Energiewirtschaft

Am 14./15. Mai geht es in Chemnitz um die Mobilitätswende durch Elektro- und Wasserstofffahrzeuge.
Erweiterte Suche
Anmelden
nach oben
Small Business Economics
Erschienen in: Small Business Economics 3/2017

04.10.2016

Top manager characteristics, agglomeration economies and firm performance

verfasst von: Cui Zhang

Erschienen in: Small Business Economics | Ausgabe 3/2017

Einloggen

Aktivieren Sie unsere intelligente Suche, um passende Fachinhalte oder Patente zu finden.

search-config
loading …

Abstract

The role of agglomeration economies in firm performance has been extensively studied. Existing studies, however, almost invariably focus on firm, industry or city characteristics to examine the performance-enhancing effects of agglomeration while overlooking the attributes of the top executives involved in shaping corporate practices. In this study, we change that focus by empirically examining the moderating role of two particular top manager characteristics (age and educational level) on the agglomeration economies–firm performance relationship. Using a top manager-firm matched panel data set, we find that top manager age rather than educational level helps firms to realize the potential benefits of agglomeration. This paper contributes to the agglomeration literature by stating the importance of individual top managers.
Vorheriger Artikel The governance environment and innovative SMEs
Nächster Artikel E-business and fast growth SMEs

Sie haben noch keine Lizenz? Dann Informieren Sie sich jetzt über unsere Produkte:

Springer Professional "Wirtschaft+Technik"

Online-Abonnement

Mit Springer Professional "Wirtschaft+Technik" erhalten Sie Zugriff auf:

  • über 102.000 Bücher
  • über 537 Zeitschriften

aus folgenden Fachgebieten:

  • Automobil + Motoren
  • Bauwesen + Immobilien
  • Business IT + Informatik
  • Elektrotechnik + Elektronik
  • Energie + Nachhaltigkeit
  • Finance + Banking
  • Management + Führung
  • Marketing + Vertrieb
  • Maschinenbau + Werkstoffe
  • Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

Jetzt informieren

Springer Professional "Wirtschaft"

Online-Abonnement

Mit Springer Professional "Wirtschaft" erhalten Sie Zugriff auf:

  • über 67.000 Bücher
  • über 340 Zeitschriften

aus folgenden Fachgebieten:

  • Bauwesen + Immobilien
  • Business IT + Informatik
  • Finance + Banking
  • Management + Führung
  • Marketing + Vertrieb
  • Versicherung + Risiko




Jetzt Wissensvorsprung sichern!

Jetzt informieren
Fußnoten
1
Another stream of the upper echelons research considers how top management team (TMT) characteristics affect organizational strategies and outcomes. The moderating effect of TMT characteristics on the economies agglomeration—firm performance relationship is a rich topic whose details are beyond the scope of this paper.
 
2
Obviously, the two specific top manager characteristics we propose to study here constitute only a small subset of the individual characteristics that we believe might be relevant to decision making. For example, one would like to know more about socioeconomic background, functional experience, or outside directorship. Unfortunately, obvious data constraints limit the richness of the exercise we can perform. In fact, top manager age and educational level are among the most commonly examined characteristics in the upper echelons literature.
 
3
One of the rules imposed by the China Securities Regulatory Commission (CSRC) concerning SEOs is that firms have to achieve a minimum average ROE of 10 % 3 years before the SEO and a minimum ROE of 10 % 1 year before the SEO. Many firms aggressively manipulate their ROEs in order to meet the SEO requirement (Liu et al. 2014).
 
4
We appreciate the insights provided by an anonymous reviewer on this issue.
 
5
We also try using CR1, CR3, CR5 as a proxy for ownership concentration, respectively, and the patterns of the coefficients are very similar.
 
6
Similar results were obtained when we estimated the empirical model using population density instead of population.
 
7
We re-estimated our regression model using the random effects (RE) method and performed the Hausman test. The Hausman’s Chi-square statistic of 43.69 (p = 0.0010) favored the fixed effects estimator over the random effects model.
 
8
We also examined for possible a curvilinear moderating effect of top manager age by incorporating a top manager age squared term in the regression model. The squared term was not significant, suggesting top manager age did not have a nonlinear moderating effect on the relationship between agglomeration economies and firm performance.
 
9
We appreciate the insights provided by the editor on this issue.
 
Literatur
Adams, R. B., Almeida, H., & Ferreira, D. (2005). Powerful CEOs and their impact on corporate performance. Review of Financial Studies, 18(4), 1403–1432.CrossRef
Antonelli, C., Patrucco, P. P., & Quatraro, F. (2011). Productivity growth and pecuniary knowledge externalities: An empirical analysis of agglomeration economies in European regions. Economic Geography, 87(1), 23–50.CrossRef
Bai, C. E., Liu, Q., Lu, J., Song, F. M., & Zhang, J. (2004). Corporate governance and market valuation in China. Journal of Comparative Economics, 32(4), 599–616.CrossRef
Barker, V. L., III, & Mueller, G. C. (2002). CEO characteristics and firm R&D spending. Management Science, 48(6), 782–801.CrossRef
Beaudry, C., & Breschi, S. (2003). Are firms in clusters reallymore innovative? Economics of Innovation and New Technology, 12(4), 325–342.CrossRef
Beaudry, C., & Schiffauerova, A. (2009). Who’s right, Marshall or Jacobs? The localization versus urbanization debate. Research Policy, 38(2), 318–337.CrossRef
Belliveau, M. A., O’Reilly, C. A., & Wade, J. B. (1996). Social capital at the top: Effects of social similarity and status on CEO compensation. Academy of Management Journal, 39(6), 1568–1593.CrossRef
Bertrand, M., & Schoar, A. (2003). Managing with style: The effect of managers on firm policies. Q J Econ, 118(4), 1169–1208.CrossRef
Blalock, G., & Gertler, P. J. (2009). How firm capabilities affect who benefits from foreign technology. Journal of Development Economics, 90(2), 192–199.CrossRef
Buyl, T., Boone, C., Hendriks, W., & Matthyssens, P. (2011). Top management team functional diversity and firm performance: The moderating role of CEO characteristics. Journal of Management Studies, 48(1), 151–177.CrossRef
Chen, G., Firth, M., Gao, D. N., & Rui, O. M. (2006). Ownership structure, corporate governance, and fraud: Evidence from China. Journal of Corporate Finance, 12(3), 424–448.CrossRef
Child, J. (1972). Organizational structure, environment and performance: The role of strategic choice. Sociology, 6(1), 1–22.CrossRef
Child, J. (1974). Managerial and organizational factors associated with company performance. Journal of Management Studies, 11(3), 175–189.CrossRef
Cho, T. S., & Hambrick, D. C. (2006). Attention as the mediator between top management team characteristics and strategic change: The case of airline deregulation. Organization Science, 17(4), 453–469.CrossRef
Chown, S. M. (1960). The Wesley rigidity inventory: A factor-analytic approach. Journal of Abnormal and Social Psychology, 61(3), 491–494.CrossRef
Cohen, W. M., & Levinthal, D. A. (1989). Innovation and learning: The two faces of R&D. Econ J, 99(397), 569–596.CrossRef
Cohen, W. M., & Levinthal, D. A. (1990). Absorptive capacity: A new perspective on learning and innovation. Administrative science quarterly, 35, 128–152.CrossRef
Collins, O., & Moore, D. G. (1970). The organization makers (p. 28). New York: Appleton-Century-Crofts.
Combes, P. P. (2000). Economic structure and local growth: France, 1984–1993. Journal of Urban Economics, 47(3), 329–355.CrossRef
Crossland, C., & Hambrick, D. C. (2007). How national systems differ in their constraints on corporate executives: A study of CEO effects in three countries. Strategic Management Journal, 28(8), 767–789.CrossRef
Dahl, M. S., & Pedersen, C. Ø. (2004). Knowledge flows through informal contacts in industrial clusters: Myth or reality? Research Policy, 33(10), 1673–1686.CrossRef
De Groot, H. L. F., Poot, J., & Smit, M. (2009). Agglomeration externalities, innovation and regional growth: Theoretical perspectives and meta-analysis. In R. Cappello & P. Nijkamp (Eds.), Handbook of regional growth and development theories. Cheltenham: Edward Elgar.
de Melo, P., Graham, D., & Noland, R. (2009). A meta-analysis of estimates of urban agglomeration economies. Regional Science and Urban Economics, 39(3), 332–342.CrossRef
Dhanaraj, C., Lyles, M. A., Steema, H. K., & Tihanyi, L. (2004). Managing tacit and explicit knowledge transfer in IJVs: The role of relational embeddedness and the impact on performance. Journal of International Business Studies, 35, 428–442.CrossRef
Di Addario, S., & Patacchini, E. (2008). Wages and the city. Evidence from Italy. Labour Economics, 15(5), 1040–1061.CrossRef
Duranton, G., Puga, D. (2001). Nursery cities: Urban diversity, process innovation, and the life cycle of products. American Economic Review, 91, 1454–1477.CrossRef
Escribano, A., Fosfuri, A., & Tribó, J. A. (2009). Managing external knowledge flows: The moderating role of absorptive capacity. Research Policy, 38(1), 96–105.CrossRef
Folta, T. B., Cooper, A. C., & Baik, Y. S. (2006). Geographic cluster size and firm performance. Journal of Business Venturing, 21(2), 217–242.CrossRef
Frenken, K. Van, Oort, F. G., & Verburg, T. (2007). Related variety, unrelated variety and regional economic growth. Regional Studies, 41(5), 685–697.CrossRef
Fu, S., & Hong, J. (2011). Testing urbanization economies in manufacturing industries: Urban diversity or urban size? Journal of Regional Science, 51(3), 585–603.CrossRef
Giuliani, E., & Bell, M. (2005). The micro-determinants of meso-level learning and innovation: Evidence from a Chilean wine cluster. Research Policy, 34(1), 47–68.CrossRef
Glaeser, E. L., Kallal, H. D., Scheinkman, J. A., & Shleifer, A. (1992). Growth in Cities. Journal of Political Economy, 100(6), 1126–1153.CrossRef
Glaeser, E. L., Rosenthal, S. S., & Strange, W. C. (2010). Urban economics and entrepreneurship. Journal of Urban Economics, 67(1), 1–14.CrossRef
Grant, R. M. (1996). Toward a knowledge-based theory of the firm. Strategic Management Journal, 17(S2), 109–122.CrossRef
Gregory, N. F., Nollen, S. D., & Tenev, S. (2009). New industries from new places: the emergence of the software and hardware industries in China and India. Stanford University Press and World Bank: Washington, DC, c2009.
Hambrick, D. C., & Mason, P. A. (1984). Upper echelons: The organization as a reflection of its top managers. Academy of Management Review, 9(2), 193–206.
Henderson, V. (1997). Medium size cities. Regional Science and Urban Economics, 27(6), 583–612.CrossRef
Henderson, V., Kuncoro, A., & Turner, M. (1995). Industrial development in cities. Journal of Political Economy, 103(5), 1067–1090.CrossRef
Herrmann, P., & Datta, D. K. (2002). CEO successor characteristics and the choice of foreign market entry mode: An empirical study. Journal of International Business Studies, 33(3), 551–569.CrossRef
Herrmann, P., & Datta, D. K. (2005). Relationships between top management team characteristics and international diversification: An empirical investigation. British Journal of Management, 16(1), 69–78.CrossRef
Herrmann, P., & Datta, D. K. (2006). CEO experiences: Effects on the choice of FDI entry mode. Journal of Management Studies, 43(4), 755–778.CrossRef
Hitt, M. A., & Tyler, B. B. (1991). Strategic decision models: Integrating different perspectives. Strategic Management Journal, 12(5), 327–351.CrossRef
Hsu, W. T., Chen, H. L., & Cheng, C. Y. (2013). Internationalization and firm performance of SMEs: The moderating effects of CEO attributes. Journal of World Business, 48(1), 1–12.CrossRef
Huber, F. (2012). Do clusters really matter for innovation practices in Information Technology? Questioning the significance of technological knowledge spillovers. Journal of Economic Geography, 12(1), 107–126.CrossRef
Inkpen, A. C., & Tsang, E. W. (2005). Social capital, networks, and knowledge transfer. Academy of Management Review, 30(1), 146–165.CrossRef
Jacob, J. (1984). Cities and the wealth of nations: Principles of economic life. New York: Random House.
Jennen, M., & Verwijmeren, P. (2010). Agglomeration effects and financial performance. Urban Studies, 47, 1–21.CrossRef
Kanfer, R., & Ackerman, P. L. (2004). Aging, adult development, and work motivation. Academy of Management Review, 29(3), 440–458.
Kaplan, S. N., Klebanov, M. M., & Sorensen, M. (2012). Which CEO characteristics and abilities matter? The Journal of Finance, 67(3), 973–1007.CrossRef
Kato, T., & Long, C. (2006). Executive turnover and firm performance in China. The American economic review, 96(2), 363–367.CrossRef
Kogut, B., & Zander, U. (1992). Knowledge of the firm, combinative capabilities, and the replication of technology. Organization Science, 3(3), 383–397.CrossRef
Kogut, B., & Zander, U. (1996). What firms do? Coordination, identity, and learning. Organization Science, 7(5), 502–518.CrossRef
Li, H., Meng, L., Wang, Q., & Zhou, L. A. (2008). Political connections, financing and firm performance: Evidence from Chinese private firms. Journal of Development Economics, 87(2), 283–299.CrossRef
Lin, C., Lin, P., Song, F. M., & Li, C. (2011). Managerial incentives, CEO characteristics and corporate innovation in China’s private sector. Journal of Comparative Economics, 39(2), 176–190.CrossRef
Liu, Y., Wei, Z., & Xie, F. (2014). Do women directors improve firm performance in China? Journal of Corporate Finance, 28, 169–184.CrossRef
Mameli, F., Faggian, A., & Mccann, P. (2014). Estimation of local employment growth: Do sectoral aggregation and industry definition matter? Regional Studies, 48(11), 1813–1828.CrossRef
Markóczy, L., Li Sun, S., Peng, M. W., & Ren, B. (2013). Social network contingency, symbolic management, and boundary stretching. Strategic Management Journal, 34(11), 1367–1387.CrossRef
Marrocu, E., Paci, R., & Usai, S. (2013). Productivity growth in the old and new Europe: The role of agglomeration externalities. Journal of Regional Science, 53(3), 418–442.
Martin, P., Mayer, T., & Mayneris, F. (2011). Spatial concentration and plant-level productivity in France. Journal of Urban Economics, 69(2), 182–195.CrossRef
McCann, B. T., & Folta, T. B. (2011). Performance differentials within geographic clusters. Journal of Business Venturing, 26(1), 104–123.CrossRef
Miller, D., & Dröge, C. (1986). Psychological and traditional determinants of structure. Administrative science quarterly, 539–560
Neffke, F., Henning, M., Boschma, R., Lundquist, K. J., & Olander, L. O. (2011). The dynamics of agglomeration externalities along the life cycle of industries. Regional Studies, 45(1), 49–65.CrossRef
Porter, M. E. (2008). Competitive strategy: Techniques for analyzing industries and competitors. New York: Free Press.
Redding, S. J. (2010). The empirics of new economic geography. Journal of Regional Science, 50(1), 297–311.CrossRef
Rigby, D. L., & Brown, W. M. (2015). Who benefits from agglomeration? Regional Studies, 49(1), 28–43.CrossRef
Rosenthal, S. S., & Strange, W. C. (2004). Evidence on the nature and sources of agglomeration economies. Handbook of Regional and Urban Economics, 4, 2119–2171.CrossRef
Roth, K. (1995). Managing international interdependence: CEO characteristics in a resource-based framework. Academy of Management Journal, 38(1), 200–231.CrossRef
Salthouse, T. A. (2009). When does age-related cognitive decline begin? Neurobiology of Aging, 30(4), 507–514.CrossRef
Schjoedt, L., & Bird, B. (2014). Control variables: Use, misuse, and recommended use. In A. Carsrud & M. E. Brännback (Eds.), Handbook of research methods and applications in entrepreneurship and small business (pp. 136–155). Northampton, MA: Edward Elgar.
Shipilov, A., & Danis, W. (2006). TMG social capital, strategic choice and firm performance. European Management Journal, 24(1), 16–27.CrossRef
Simonen, J., Svento, R., & Juutinen, A. (2015). Specialization and diversity as drivers of economic growth: Evidence from high-tech industries. Papers in Regional Science, 94(2), 229–247.
Singh-Manoux, Archana, & Kivimaki, M. G. M. E. A. (2012). Timing of onset of cognitive decline: Results from Whitehall II prospective cohort study. British Medical Journal, 344, 18–26.
Staudinger, U. M., & Pasupathi, M. (2000). Life-span perspectives of self, personality, and social cognition (2nd ed.). Mahwah, NJ: Erlbaum.
Thompson, J. D. (1967). Organizations in Action. New York: McGraw-Hill.
Thong, J. Y., & Yap, C. S. (1995). CEO characteristics, organizational characteristics and information technology adoption in small businesses. Omega, 23(4), 429–442.CrossRef
Tihanyi, L., Ellstrand, A. E., Daily, C. M., & Dalton, D. R. (2000). Composition of the top management team and firm international diversification. Journal of Management, 26(6), 1157–1177.CrossRef
Tyler, B. B., & Steensma, H. K. (1998). The effects of executives’ experiences and perceptions on their assessment of potential technological alliances. Strategic Management Journal, 19(10), 939–965.CrossRef
Vermeulen, F., & Barkema, H. (2002). Pace, rhythm, and scope: Process dependence in building a profitable multinational corporation. Strategic Management Journal, 23(7), 637–654.CrossRef
Yang, F. F., & Yeh, A. G. (2013). Spatial development of producer services in the Chinese urban system. Environment and Planning A, 45, 159–179.CrossRef
Zahra, S. A., & Pearce, J. A. (1989). Boards of directors and corporate financial performance: A review and integrative model. Journal of Management, 15(2), 291–334.CrossRef
Metadaten
Titel
Top manager characteristics, agglomeration economies and firm performance
verfasst von
Cui Zhang
Publikationsdatum
04.10.2016
Verlag
Springer US
Erschienen in
Small Business Economics / Ausgabe 3/2017
Print ISSN: 0921-898X
Elektronische ISSN: 1573-0913
DOI
https://doi.org/10.1007/s11187-016-9805-y

Weitere Artikel der Ausgabe 3/2017

Small Business Economics 3/2017 Zur Ausgabe

OriginalPaper

E-business and fast growth SMEs

OriginalPaper

Gender differences in entrepreneurship and intrapreneurship: an empirical analysis

OriginalPaper

Who instigates university–industry collaborations? University scientists versus firm employees

OriginalPaper

The governance environment and innovative SMEs

OriginalPaper

Does foreign direct investment stimulate new firm creation? In search of spillovers through industrial and geographical linkages

OriginalPaper

Ownership structure, insider behavior, and IPO performance of SMEs in China

Premium Partner

    Bildnachweise