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Pickett Harley-Davidson, Inc. 2006 Summary Annual Report. Available Online: http://www.harleydavidson.com/en_US/Media/downloads/Annual_Reports/2006/HD_AR_2006.pdf?locale =en_US&bmLocale=en_US Karras, G. (1999). Taxes and growth: Testing the neoclassical and endogenous growth models. Contemporary Economic Policy, 17 (2). 177-188. Matsuuyama, K. (1999). Growing through cycles. Econometrica, 67 (2). 335-347. Melcher, R. "Tune Up Time for Harley," Business Week, April 8, 1996, page 90. Penn, R. (1999). A glimpse of the future. Journal of Accountancy. (July) 35-40. Van Horne, J. (1998). Financial management and policy. (11 th ed.). London: Prentice-Hall. Webster, F. (2000). Understanding the relationships among brands, consumers, and resellers. Journal of the Academy of Marketing Science, 28 (1). 17-23. Whitaker, R. (1999). The early stages of financial distress. Journal of Economics and Finance, 23 (2). 123-133. ASBBS E-Journal, Volume 4, No.1, 2008 176
FIRM EXPANSION AND REGIONAL DEVELOPMENT: RE-DISCOVERING THE IMPORTANCE OF GEOGRAPHIC SPACE AND LOCATION Walecki, Julius M. University of La Verne waleckij@ulv.edu ABSTRACT There is enough evidence today proving that geographic space plays a very important role in business expansion, yet, this area continues to be neglected by many business schools. During the last decade a renewed interest in the role of geographic space in business and economic development has brought out issues such as agglomeration economies, firm location and industry clusters to the attention of the mainstream economics and top business experts. The new research has been often led by Paul Krugman and Michael Porter. Krugman has emphasized the importance of the ‘new economic geography’, while Porter’s main attention has been devoted to investigating the role of clusters in firm expansion and regional growth. Both Krugman and Porter have many followers who have made important contributions to the development of the main concepts. There is a lot more work that needs to be done to fully integrate geographic and economic spaces, which is necessary to successful business expansion and regional growth. In the meantime, many government agencies have been anxious to take advantage of the ’new’ concepts and have tried to apply some of the suggested tools in regional development with various degrees of success. As usually is the case, it is not easy to translate the ‘developing theory’ into practice as our reality is always far more complex than the theoretical models. The existing experiences seem to suggest that in order to have a positive impact on economic development governments need to get more involved in improving their understanding of complex relationships within not only geographic- but also economic spaces. At the same time, from a perspective of private business, most firms should be paying more, not less, attention to geographic space, which clearly will affect their future. INTRODUCTION The main stream business education and traditional economics had stayed clear for a long time from adding spatial dimension into their theoretical considerations of key issues in business decision making and economic growth. Firm and industry location, as well as regional economic development, have been mostly left to other fields, such as economic geography, regional science and often less known regional or spatial economics. Most business schools today still do not include spatial considerations and the role of firm location in their academic curricula. The economic and business texts often fail to properly address the importance of geographic space in firm and industry growth. For example, a very popular textbook by Michael Baye “Managerial Economics and Business Strategy” gives almost no consideration to the role of firm location (Baye, 2006). The spatial aspects of business development, agglomeration economies, and even ASBBS E-Journal, Volume 4, No.1, 2008 177
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