On the Shoulders of Giants: Co‐location with Dominant Firms in the Emerging Fiber Optics Industry

Abstract

In this study we investigate the location choices of start‐ups and established firms relative to dominant firms in the US fiber optics industry from 1976 to 1994. We test the propensity to co‐locate with dominant firms and whether proximity to a dominant firm impacts the strategic choices made by start‐ups and established firms. Contrary to our predictions, we find that both start‐ups and established firms are equally likely to co‐locate with dominant firms. We also find that start‐ups exhibit greater new product adoption rates and greater product‐line breadth than established firms. This implies that start‐ups are relatively more likely to realize greater strategic gains with entry into emerging markets.

Keywords:

• Emerging technology
• strategic location choice
• dominant and startup firms
• innovations

Acknowledgements

The authors wish to thank the editor and two anonymous reviewers for their helpful comments on earlier drafts of this paper.