Geographically concentrated industry activity creates pools of skilled labor and specialized suppliers, and increases opportunities for knowledge spillovers. The strategic value of these agglomeration economies may vary by firm, depending upon the relative value of each economy, and upon firm...

There has been a recent revival of interest in the geographic component of firm strategy. Recent research suggests that two opposing forces - competition costs and agglomeration benefits - impact a firm's geographic strategy, along with location traits. Unexplored is (1) how the tradeoff between...