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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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The Social Structure of Entrepreneurial Activity: Geographic Concentration of Footwear Production in the United States, 1940-1989
Author(s)Sorenson, Olav; Audia, Pino G.
AbstractNearly 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.
IssueNo2
Pages424-462
ArticleAccess to Article
SourceAmerican Journal of Sociology
VolumeNo106
PubDateSeptember2000
ISBN_ISSN0002-9602
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