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The Social Structure of Entrepreneurial Activity: Geographic Concentration of Footwear Production in the United States, 1940–1989

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Sorenson, Olav, Audia, Pino G.·2000·American Journal of Sociology

Abstract

Nearly all industries exhibit geographic concentration. Most theories of the location of industry explain the persistence of these production centers as the result of economic efficiency. This article argues instead that heterogeneity in entrepreneurial opportunities, rather than differential performance, maintains geographic concentration. Entrepreneurs need exposure to existing organizations in the industry to acquire tacit knowledge, obtain important social ties, and build self‐confidence. Thus, the current geographic distribution of production places important constraints on entrepreneurial activity. Due to these constraints, new foundings tend to reify the existing geographic distribution of production. Empirical evidence from the shoe industry supports this thesis.

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Authors
Sorenson, O., & Audia, P. G.
Venue
American Journal of Sociology
Published
2000-09
Volume
106
Issue
2
Pages
424-462
ISSN
  • 0002-9602 (ISSN-L)
  • 1537-5390
OpenAlex
W2158135958
Cited by
991
References
0
FWCI
28.01
Type
journal article
Language
en
Open access
green

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