Sean O'Hagan

Tacit knowledge transfer via interlocking directorates: A comparison of Canada and the United States

This paper explores geography as a contributing factor to knowledge transfer among Canadian and American firms. We argue that the knowledge networks of the two countries are moving in opposite directions. Canadas network is converging into fewer cities while the American network encompasses a greater number of cities. When the knowledge networks of Canada and the United States are explored, national and local boundaries are found to impede the movement of corporate knowledge. Prior to our discussion on its spatiality, the concept of knowledge is introduced and its relation to individuals and firms of the Canadian and American corporate network is examined.

The Growing Localness of the Canadian City, or, On the Continued (Ir)relevance of Economic Base Theory

The past 50 years have brought massive changes in the patterns of economic activity around the world. Not only has global trade increased, but, precisely because of this, many scholars suggest that local (and regional) networks of production and exchange have become more prevalent and important. The nature of local economic development has, as a result, changed quite substantially. And yet theoretical approaches to it largely have not. Fifty years after Douglass North introduced economic base theory - asserting that economies grow only through increased exports - it remains the familiar refrain, if not the basis, of local economic development theory. We think it is about time to reassess the merits of base theory as an approach to, and explanation of, local economic development. Accordingly, in this article, we review briefly Norths argument for base theory and the debate it stirred up early on. Then we present two evaluations of its current relevance. The first is theoretical: we consider whether changes in the patterns of economic activity in the global north, including the emergence of local/regional networks of production and exchange and the growth of consumer services, have made it possible to achieve economic growth without increasing exports. The second is empirical: using the minimum requirements method, we examine whether the economies of Canadas cities have become more locally oriented and, if so, whether they have grown. Both evaluations indicate that economic development is indeed possible through increased local activity (although exports remain important). We conclude that it is time to consider more nuanced models of local economic development that accommodate the multiple ways in which development can be achieved.

Exploring the Personal Histories of the Top Executives of US Firms Using a Quantitative Approach: Is There a Geographical Relationship with Corporate Headquarters, and Does It Influence Firm Performance?

This paper analyses where top executives were born and where they attended university to uncover regional groupings of the most influential executives that shape corporate culture and strategy in the United States. Within the context of this paper, it is argued that the personal histories of top executives influence their decision-making abilities, and thus corporate culture. It was found that intra-regional, intra-state, and intra-city links were noteworthy factors in executive selection. Distances were higher, and percentages of intra-regional links were lower for more profitable and higher growth firms. This indicates that more competitive firms acquire executives that have experienced different institutions during their lives and university educations. On the other hand, less profitable and lower growth firms are more likely to obtain executives embedded in similar institutions that already exist within the firm. The results suggest that key choices made by corporate America are influenced in part by geography far more complex than its own operations.

Are American Interlocking Directorates Associated with Brain Circulation and Do They Translate into Higher Corporate Performance

This study explores interlocking directorates, with specific focus on those connections when a director sits as an inside director for an American corporation and an outside director for firm located outside of North America. The goal of this study is to explore the spatial relationship between the personal histories of directors and the headquarters location of the corporate boards on which they sit. First, it was found that a geographical relationship in the interlocking network of American companies exists. Second, it was determined that domestic personal histories played a significant role as 96.5 percent of directors attended a university in the United States and 93.4 percent directors were born there. When North American universities and North American births were deleted from the sample, a geographical pattern also emerges for Asian firms. Finally, the study found that the lone region that consistently displayed greater firm performance where a directors personal history and the interlocked company were the same as Asia.

Defining the Record of High-Growth Firms by U.S. Metropolitan Region: What Happens to the Inc. 500?

ABSTRACT This study devotes attention to the intersection of two research areas: business development and metropolitan economic evolution. The analysis identifies businesses included in the 2000–2008 Inc. 500 annual rankings of high-growth firms (HGFs) in the United States, and tracks these firms in the years following their Inc. 500 appearance. The research finds that most HGFs have an extended record as independent businesses, with firm failure rates falling far lower than those associated with business continuation. The study also shows that HGF acquisition activity varies greatly among U.S. Metropolitan Statistical Areas (MSAs), with Boston and Austin leading as hosts to HGFs that became acquisition targets. Finally, the analysis shows that Phoenix and Indianapolis lead all others in hosting HGFs with extended growth periods. The article argues these MSAs have the potential to play a role in shifting the U.S. corporate hierarchy, and interprets the results in light of the public policy applications and further research opportunities presented.