Spatial patterns of profitable firms' location: empirical evidence from Russia
Keywords:
Spatial effects, hierarchical linear analysis, regional administration, share of profitable enterprises.
Abstract
Our study examines the variance of the profitable firms in 330 municipalities within 7 constituent entities of the Russian Federation, based on range of data from 2010 to 2017. The methods of spatial and hierarchical linear analysis were involved to identify horizontal and hierarchical ties. Our findings highlighted existence spatial autocorrelation of municipalities concerning firms’ profitability with high-high and low-low areas stable throughout the determined period. The interregional variance was evaluated, applied hierarchical linear modeling showed that region determined to 25.2% of the variance of the share profitable enterprises in municipalities. Our findings provide essential empirical evidence required policy initiatives at regional level for creation sustainable effective enterprises in the emerging economies.
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References
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Plummer, L. (2009). Spatial Dependence in Entrepreneurship Research, ‘Organizational Research Methods’, 13(1), 146–175. DOI: 10.1177/1094428109334199
Ragoubi, H., El Harbi, S. (2017). Entrepreneurship and income inequality: a spatial panel data analysis, ‘International Review of Applied Economics’, 32(3), 374–422. DOI: 10.1080/02692171.2017.1342776
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Stavropoulos, S., Skuras, D. (2015). Firm Profitability and Agglomeration Economies: An Elusive Relationship, ‘Tijdschrift Voor Economische En Sociale Geografie’, 107(1), 66–80. DOI:10.1111/tesg.12125
Wieczorek, A. (2018). Sustainability transitions in developing countries: Major insights and their implications for research and policy, ‘Environmental Science & Policy’, 84, 204-216.
Yusupov, K.N., Timiryanova, V.M., Toktamysheva, Yu.S., Popov, D.V. (2018). Hierarchical and spatial effects in the development of municipalities,’Economic and Social Changes: Facts, Trends, Forecast’, 11(5), 137-154. DOI: 10.15838/esc.2018.5.59.9
Zhang, L., Wang, J., Wen, H., Fu, Z., & Li, X. (2016). Operating performance, industry agglomeration and its spatial characteristics of Chinese photovoltaic industry, ‘Renewable and Sustainable Energy Reviews’, 65, 373–386. DOI:10.1016/j.rser.2016.07.010
Zouaghi, F., Sánchez-garcía, M., Hirsch, S. (2017). What drives firm profitability? A multilevel approach to the Spanish agri-food sector. ‘Spanish journal of agricultural research’, Vol 15, No 3.
Anselin, L. (1990). Spatial Dependence and Spatial Structural Instability in Applied Regression Analysis, ‘Journal of Regional science’, 30, 185-207.
Bamiatzi, V., Bozos, K., Cavusgil, S. T., Hult, G. T. (2015). Revisiting the firm, industry, and country effects on profitability under recessionary and expansion periods: a multilevel analysis, ‘Strategic Management Journal’, 37(7), 1448–1471. DOI:10.1002/smj.2422
Banerji, R. (1978). Average size of plants in manufacturing and capital intensity, ‘Journal of development economics’, 5, 155-156.
Bliese, P. D. (2000). Within-group agreement, nonindependence, and reliability: implications for data aggregation and analysis. [In:] K. J. Klein, & S. W. J. Kozlowski (Eds.) Multi-level theory, research and methods in organizations: Foundations, extensions, and new directions. San Francisco, CA: Jossey-Bass.
Carney, M., Estrin, S., Liang, Z., & Shapiro, D. (2018). National institutional systems, foreign ownership and firm performance: The case of understudied countries, ‘Journal of World Business’. DOI:10.1016/j.jwb.2018.03.003
Chan, C. M., Makino, S., Isobe, T. (2010). Does subnational region matter? Foreign affiliate performance in the United states and China, ‘Strategic Management Journal’, 31(11), 1226–1243. DOI: 10.1002/smj.854
Danilova, I., Karetnikova, T. (2016). Сompetitive power of companies and industries: a methodical approach to evaluation, ‘Indian Journal of Science and Technology’, 9 (36), 102-119.
Davidson, N. B., Mariev, O. S. (2015). The impact of spatial concentration on enterprise performance, ‘Economy of Region’, 4, 95-105. DOI: 10.17059/2015-4-8
Federate state statistics service. The official website. http://www.gks.ru/free_doc/new_site/bd_munst/munst.htm (accessed 23.05.19)
Garson, D. (2013). Hierarchical linear modeling: guide and applications, Wiley.
Geary, R. (1954). The continiguity ratio and statistical mapping, The Incorporated Statistician, 5, 115 – 145.
Goddard, J., Tavakoli, M., Wilson, J. O. S. (2005). Determinants of profitability in European manufacturing and services: evidence from a dynamic panel model, ‘Applied Financial Economics’, 15(18), 1269 - 1282. DOI: 10.1080/09603100500387139
Goldstein, H. (2010). Multilevel Statistical Models: 4th Edition, Wiley.
Goldszmid, Tr. G. B., Brito, L., De Vasconcelos, F. C. (2011). Country effect on firm performance: A multilevel approach, ‘Journal of Business Research’, 64(3), 273–279. DOI:10.1016/j.jbusres.2009.11.012
Hirsch, S., Schiefer, J., Gschwandtner, A., & Hartmann, M. (2014). The Determinants of Firm Profitability Differences in EU Food Processing, ‘Journal of Agricultural Economics’, 65(3), 703–721. DOI:10.1111/1477-9552.12061
Ivanov, P. (2015). Systematization of approaches to the interpretation of the concept of financial capacity of a territorial unit in the context of financial security, ‘Russian Journal of Entrepreneurship’, 16(15), 2451-2462. DOI: 10.18334/rp.16.15.558.
Ketelhöhn, N. W., Quintanilla, C. (2012). Country effects on profitability: A multilevel approach using a sample of Central American firms, ‘Journal of Business Research’, 65(12), 1767–1772. DOI:10.1016/j.jbusres.2011.10.036
Klimova, N. (2018). Investment support of territories at the different stages of their life cycle, ‘Azimuth of Scientific Research: Economics and Administration’, 4(25), 132-136.
Krasniqi, B., Desai, S. (2016). Institutional drivers of high-growth firms: country-level evidence from 26 transition economies, ‘Small Business Economics’, 47(4), 1075–1094. DOI:10.1007/s11187-016-9736-7
Kristiansen, G. (2018). Firm, industry and country effects on firm profitability: A multilevel approach: master’s Thesis. School of Economics and Business. Norwegian university of life science. 72p.
Li, J., Zhang, W., Chen, H., Yu, J. (2019). Urban - Rural construction land Transition (URCLT) in Shandong Province of China: Features measurement and mechanism exploration, Habitat International, 86, 101-115.
Li, X., Sun, L. (2017). How do sub-national institutional constraints impact foreign firm performance?, ‘International Business Review’, 26, 555–565. DOI:10.1016/j.ibusrev.2016.11.004
Ma, X., Tong, T. W., Fitza, M. (2012). How much does subnational region matter to foreign subsidiary performance? Evidence from Fortune Global 500 Corporations’ investment in China, ‘Journal of International Business Studies’, 44(1), 66–87. DOI:10.1057/jibs.2012.32
Molina-azorin, J. F., Pereira-moliner, J., Claver-cortés, E. (2010). The importance of the firm and destination effects to explain firm performance, ‘Tourism Management’, 31(1), 22-28. DOI:10.1016/j.tourman.2009.02.009
Moran, P. (1948) The interpretation of statistical maps, ‘Journal of the Royal Statistical Society’, Series B 10, 243 – 251.
O’Donoghue, C. (2017) Farm Level Microsimulation Models. MacMillan, Palgrave. 360p. DOI:10.1007/978-3-319-63979-6
Peilei, F., Ouyang, Z., Nguyen, D., Nguyen, T., Chen, J. (2015). The spatial distribution of industries in transitional China: A study of Beijing, ‘Habitat International’, 49, 33-44.
Plummer, L. (2009). Spatial Dependence in Entrepreneurship Research, ‘Organizational Research Methods’, 13(1), 146–175. DOI: 10.1177/1094428109334199
Ragoubi, H., El Harbi, S. (2017). Entrepreneurship and income inequality: a spatial panel data analysis, ‘International Review of Applied Economics’, 32(3), 374–422. DOI: 10.1080/02692171.2017.1342776
Salah, W. (2018). The Impact of Country-Level and Firm-Level on Financial Performance: a multilevel approach. ‘International Journal of Accounting and Taxation December’, Vol. 6, 2, 41-53. DOI: 10.15640/ijat.v6n2a5
Stavropoulos, S., Burger, M. J., & Skuras, D. (2015). Data Sparseness and Variance in Accounting Profitability,. ‘Organizational Research Methods’, 18(4), 656–678. DOI:10.1177/1094428115574517
Stavropoulos, S., Skuras, D. (2015). Firm Profitability and Agglomeration Economies: An Elusive Relationship, ‘Tijdschrift Voor Economische En Sociale Geografie’, 107(1), 66–80. DOI:10.1111/tesg.12125
Wieczorek, A. (2018). Sustainability transitions in developing countries: Major insights and their implications for research and policy, ‘Environmental Science & Policy’, 84, 204-216.
Yusupov, K.N., Timiryanova, V.M., Toktamysheva, Yu.S., Popov, D.V. (2018). Hierarchical and spatial effects in the development of municipalities,’Economic and Social Changes: Facts, Trends, Forecast’, 11(5), 137-154. DOI: 10.15838/esc.2018.5.59.9
Zhang, L., Wang, J., Wen, H., Fu, Z., & Li, X. (2016). Operating performance, industry agglomeration and its spatial characteristics of Chinese photovoltaic industry, ‘Renewable and Sustainable Energy Reviews’, 65, 373–386. DOI:10.1016/j.rser.2016.07.010
Zouaghi, F., Sánchez-garcía, M., Hirsch, S. (2017). What drives firm profitability? A multilevel approach to the Spanish agri-food sector. ‘Spanish journal of agricultural research’, Vol 15, No 3.
Published
2019-11-21
How to Cite
Yusupov, K., Grishin, K., Timiryanova, V., & Krasnoselskaya, D. (2019). Spatial patterns of profitable firms’ location: empirical evidence from Russia. Amazonia Investiga, 8(24), 452-463. Retrieved from https://amazoniainvestiga.info/index.php/amazonia/article/view/1004
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