Annals of Business Administrative Science
Online ISSN : 1347-4456
Print ISSN : 1347-4464
ISSN-L : 1347-4456
A Dynamic View of Industrial Agglomeration
Toward an Integration of Marshallian and Weberian Theories
Nobuyuki INAMIZUTakahisa WAKABAYASHI
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JOURNAL OPEN ACCESS

2013 Volume 12 Issue 1 Pages 13-29

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Abstract

This study first outlines the classic Marshallian and Weberian theories of industrial agglomeration, highlighting the difference between Weber's theory, which “discusses the process of agglomeration emergence, based on predictable profit, from a state of nothingness," and Marshall's theory, which “discusses the process of continued self-reinforcement of existing agglomeration." Consequently, one cannot expect to understand the dynamism of industrial agglomeration by viewing these two theories separately. This study integrates the two theories to identify a framework for viewing industrial agglomeration dynamically. Specifically, this paper pays particular attention to “gatekeeper"-type companies, which capture the demand from markets outside the industrial agglomeration and make use of networks within the industrial agglomeration to meet that demand.

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© 2013 Global Business Research Center

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