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Location stickiness in enterprise location selection.
The meaning and theoretical explanation of location stickiness (I) The meaning of location stickiness refers to the attachment of an enterprise's former site (or birthplace) to the enterprise, or the various connections between the enterprise and its former site (or birthplace), which makes it difficult for the enterprise to separate or leave. The concept of "location stickiness" comes from spatial economics. Spatial economics puts forward that economic activities have location stickiness. Van Steen's research found that there are differences in location stickiness in different industries: enterprises engaged in agriculture, wholesale and mass services, hotels and restaurants have location stickiness, while enterprises engaged in enterprise services, construction, transportation and wholesale activities have weaker location stickiness and stronger migration motivation. Armstrong & Taylor believes that location stickiness can be reasonably explained by distinguishing the importance of consumer and final demand sectors and market location to enterprise migration: enterprises serving local or regional consumers have greater location stickiness, while enterprises with larger consumer markets have weaker location stickiness and stronger mobility. Spatial economics thinks that location stickiness is the result of path dependence. In the long-term development process, enterprises will form a specific development form or mode, and various business activities of enterprises will gradually adapt to and strengthen this form or mode, and changing this form or mode requires a lot of money. When an enterprise forms a specific development form or way in a certain place, this place has a sticky effect on the business activities of the enterprise. When the location stickiness is strong enough, even if other regions have strong absorption, enterprises will be bound by the location stickiness and find it difficult to move. Therefore, it is precisely because of the existence of location stickiness that the location of enterprises presents a relatively stable state. (II) Theoretical explanation of location stickiness Although spatial economics has laid a theoretical foundation for the definition of location stickiness, a deeper understanding of location stickiness needs more theoretical support from path dependence theory and network embedding theory. 1. Path dependence and location stickiness. Path dependence means that economic development and the evolution of economic system are usually influenced by people's past choices. Douglas North believes that "path dependence" is similar to inertia in physics. Once things enter a certain path, they may become dependent on it. Economic life, like the physical world, has a mechanism of increasing returns and self-reinforcement. Path dependence also means path locking, which is Arthur's path locking effect. Once people take a step forward, it means that two problems have been difficult to change: other opportunities synchronized with this step are lost, that is, there is a huge opportunity cost; Once this step is taken, it is difficult to turn back, that is, there are huge floating costs or correction costs. In behavioral psychology, path locking effect refers to the phenomenon that once people form a certain behavior standard, it is difficult to change it. Teece and others believe that the limited combination of enterprise practices seriously restricts the strategic choice of enterprises. There is a way for an enterprise to rely on its location, that is, its long-term business activities in its location have formed a complex relationship between its resources, talents, business forms and its location. The resources of the enterprise are gradually accumulated based on the location, the talents of the enterprise are gradually cultivated based on the location, and the business form of the enterprise is established through various business activities in the location. These connections are strengthened from time to time in the process of enterprise development, thus entering a locked state. In addition, the natural environment, institutional environment and cultural environment of enterprises will form mode dependence in the long-term adaptation. If enterprises are separated from their previous websites, www.bfblw.com will be 100% paper network. On the one hand, they must give up their spirit, capital and feelings; On the other hand, they need to re-accumulate resources, cultivate talents, change business forms and adapt to the new environment. The existence and great influence of timing cost, floating cost and correction cost make it difficult for enterprises to leave their birthplace. 2. Network embeddedness and location stickiness. Granovett believes that network embeddedness refers to the economic behavior of enterprises embedded in the social structure, and the center of social structure is the social network in people's lives. The network embeddedness of enterprise economic behavior emphasizes the inseparability of enterprise behavior and its embedding in the network, that is, every behavior of an enterprise will be linked with other actors in its network, or all behaviors of an enterprise can not exist without other actors in its network. The theory of enterprise strategic management holds that the business activities of enterprises must win the support and assistance of relevant interest groups, thus creating an ecological environment conducive to the development of enterprises. The ability of enterprises to obtain external resources effectively has always been an important source of their competitive advantage, and the social network embedded by enterprises is an important way to obtain external resources. The business behavior of an enterprise usually occurs among the members of the social network with mutual relations. Due to the continuous outbreak of business activities, the interdependence between enterprises and local governments, suppliers, customers and partners will become stronger and stronger, thus tending to establish long-term and stable cooperative relations. With more and more enterprises embedded in the local network, more and more information and resources can be obtained from it, which makes enterprises gain competitive advantages that cannot be obtained outside the network. Therefore, network embeddedness must be considered as a very important factor in enterprise location: that is, the social network embedded by enterprises constitutes the cornerstone of enterprise development. Separating the embedded social network will inevitably lose a lot of social capital that plays an important role in the development of enterprises, thus not only losing the competitive advantage originally built, but also bringing crisis to the survival and development of enterprises.