The Case of Canadian Computer Software Firms

Past research indicates that firm clustering improvesfirm performance by increasing levels of competitiveness and innovation amongfirms.While several studies have investigated the impact of co-locationon overall firm performance, few studies have examined the impact ofco-location on export levels. Using previous research, two hypotheses are developed, based on therelationship between export intensity and (1) location in a cluster, and (2)level of standardization of products.To test these hypotheses, data werecollected from 537 Canadian computer software firms listed by Industry Canada;these specific firms exhibited export sales, majority Canadian ownership, andcomplete information for the study's variables.The control variables ofthe studyandmeans of measuring the specific variables--e.g., exportintensity, co-location, and product standardization--are discussed. The results of the least squares regression of the data areexplained.The findings of the study indicate that co-location and productstandardization are positively linked to export intensity.However, thispositive relationship is only indicated for product-oriented firms and notforservice-oriented firms.(AKP)