Location of New Firms: Influence of Commuting Behaviour

In the entrepreneurship literature, it is generally assumed that an individual establishes a new firm in a location in which they have strong ties, normally in the municipality of residence or employment. We scrutinise this general assumption and show that firm location depends on individual charact...

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Bibliographic Details
Published inGrowth and change Vol. 48; no. 4; pp. 682 - 699
Main Authors Backman, Mikaela, Karlsson, Charlie
Format Journal Article
LanguageEnglish
Published Lexington Blackwell Publishing Ltd 01.12.2017
Subjects
Commuting
Employment
entrepreneur
Entrepreneurs
Entrepreneurship
Location of industry
probability
Residence
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Summary:In the entrepreneurship literature, it is generally assumed that an individual establishes a new firm in a location in which they have strong ties, normally in the municipality of residence or employment. We scrutinise this general assumption and show that firm location depends on individual characteristics, such as the commuting experience. Our results show that commuting influences the firm location choice. The probability of establishing a firm in the work municipality increases if the entrepreneur is a commuter, holding constant the type of region and unobservable and observable individual features.
Bibliography:Mikaela Backman is an Assistant Professor in Centre for Entrepreneurship and Spatial Economics (CEnSE), Jönköping International Business School, Jönköping, Sweden. Her e‐mail address is
mikaela.backman@ju.se
charlie.karlsson@ju.se
Charlie Karlsson is an Emeritus Professor in Jönköping International Business School, Jönköping, Sweden; Professor in Blekinge Institute of Technology, Karlskrona, Sweden; Professor in University of Southern Denmark, Sönderborg, Denmark. His e‐mail address is
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ISSN:0017-4815
1468-2257
1468-2257
DOI:10.1111/grow.12200