A dynamic analysis of the agglomeration and performance relationship

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Title: A dynamic analysis of the agglomeration and performance relationship
Authors: Marco-Lajara, Bartolomé | Claver-Cortés, Enrique | Úbeda García, Mercedes | Zaragoza Sáez, Patrocinio del Carmen
Research Group/s: Dirección Estratégica, Conocimiento e Innovación en una Economía Global (DECI-GLOBAL)
Center, Department or Service: Universidad de Alicante. Departamento de Organización de Empresas
Keywords: Economies of agglomeration | Tourist districts | Dynamic analysis | Hotel performance
Knowledge Area: Organización de Empresas
Issue Date: May-2016
Publisher: Elsevier
Citation: Journal of Business Research. 2016, 69(5): 1874-1879. doi:10.1016/j.jbusres.2015.10.072
Abstract: This study takes a dynamic approach to the study of the economies of agglomeration in the tourist districts of the Spanish Mediterranean coast. Results suggest that company growth has a U-shaped relationship with the degree of agglomeration, which means that first levels of agglomeration profits decrease until they reach a certain point of agglomeration, from which business growth begins to increase. This process means that hotels in tourist districts with a high degree of agglomeration are not only more profitable at a given moment of time, but these hotels even increase their competitiveness with time. This increased competitiveness owes to the fact that the profitability of these hotels grows faster. The analysis also determines that costs are the cause of this behavior because costs grow more quickly when the degree of agglomeration is low, but after some time, the externalities resulting from agglomeration imply a progressive reduction of business costs.
URI: http://hdl.handle.net/10045/62276
ISSN: 0148-2963 (Print) | 1873-7978 (Online)
DOI: 10.1016/j.jbusres.2015.10.072
Language: eng
Type: info:eu-repo/semantics/article
Rights: © 2015 Elsevier Inc.
Peer Review: si
Publisher version: http://dx.doi.org/10.1016/j.jbusres.2015.10.072
Appears in Collections:INV - DECI-GLOBAL - Artículos de Revistas

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