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Article
Agglomeration Effects and Strategic Orientations: Evidence From the U.S. Lodging Industry
Academy of Management Journal (2005)
  • Linda Canina, Cornell University
  • Cathy A Enz, Cornell University
  • Jeffrey S Harrison, University of Richmond
Abstract
This study provides evidence regarding the strategic dynamics of competitive clusters. Firms that agglomerate (co-locate) may benefit from the differentiation of competitors without making similar differentiating investments themselves. Alternatively, co-locating with a high percentage of firms with low-cost strategic orientations reduces performance for firms pursuing high levels of differentiation. Further, the lowest-cost providers with the greatest strategic distance from the norm of the competitive cluster reap the greatest benefit from co-location with differentiated firms. We find empirical support for these ideas using a sample of 14,995 U.S. lodging establishments, and controlling for a number of key demand-shaping factors.
Keywords
  • competitive clusters,
  • investments,
  • demand,
  • lodging industry
Publication Date
August, 2005
Publisher Statement
Required Publisher Statement

© Academy of Management. Reprinted with permission. All rights reserved.

Citation Information
Linda Canina, Cathy A Enz and Jeffrey S Harrison. "Agglomeration Effects and Strategic Orientations: Evidence From the U.S. Lodging Industry" Academy of Management Journal Vol. 48 Iss. 4 (2005)
Available at: http://works.bepress.com/cathy_enz/27/